Bitcoin futures show returning optimism, but uncertainty remains the dominant theme
Biden crypto regulations and Fed statements add more pressure to hamstrung market
News that the U.S. president plans on tightening crypto-related regulations has done little to bolster a market still reeling from a midweek collapse.
The cryptocurrency market has been relatively uneventful over the past 24 hours after an extreme midweek sell-off saw many coins and tokens decline approximately 40% before recovering. As of the time of this writing, the total crypto market capitalization is up a negligible 0.1% to $1.8 trillion, while BTC and ETH are up 1.3% and 0.3%, respectively.
The altcoin market is a mixed bag, with many major coins and tokens seeing declines. XMR, however, is up 23% across global exchanges.
The cryptocurrency market remains in a state of extreme fear, according to multifactorial crypto market sentiment analysis from alternative.me. Though it recovered slightly from yesterday, the sheer amount of liquidations and sustained losses have certainly hamstrung a large portion of the retail market while stifling bullish sentiment — in the short-term, at least.
News that United States President Joe Biden's administration will look to tighten the regulatory environment for cryptocurrencies has done little to help reignite bullish sentiment among traders and speculators. As per various reports, cryptocurrency transfers greater than $10,000 will be required to be reported to the country's tax authorities, starting in 2023. The U.S. Federal Reserve also regurgitated the common complaints that digital currencies are commonly used for illegal activities.
DeFi passes stress test, bolsters long-term investors
The total value locked in decentralized finance is up slightly since yesterday, with the metric now standing above $64.5 billion. Polygon is the big TVL winner on the day after adding more than 7.5%.
The decentralized exchange race is currently uneventful — with Curve Finance and Uniswap both up roughly 2.3%, and SushiSwap up 3.4%.
DeFi proponents have been quick to note on social media that the emergent space held up well during this week's stress test — something OKEx Insights also noted in previous Crypto Market Daily articles. Long-term investors in the space are, thus, feeling optimistic about the future.
Top altcoin gainers and losers: Large-caps nowhere to be found
- KISHU/USDT +49.77%
- ELF/USDT +26.80%
- TRA/USDK +18.89%
- ORS/USDT -16.37%
- APIX/USDT -21.40%
- GAS/USDT -21.81%
Small-cap altcoins are dominating the list of top performers on OKEx today, with no large-caps anywhere near the top. The same is true when it comes to the worst performers.
BTC technical analysis: Complicated picture in the short-term
The price of BTC is struggling against resistance, which is coming in the form of the ribbon of exponential moving averages on the four-hour time frame. An area of historical trading interest is also complicating matters for the bulls.
The complicated technical picture being painted is causing many traders to sit on their hands — which partially explains the lack of movement in major cryptocurrencies' prices today.
ETH technical analysis: Traders playing wait-and-see
ETH remains in a similar boat against USDT. The second-ranked cryptocurrency is currently trading underneath the four-hour EMA ribbon, with traders largely unsure about its next move.
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