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Bitcoin Ethereum DeFi Crypto Market Daily OKEx Insights

US stablecoin meeting causes crypto capitulation concerns

2021.07.19 Adam James

The prices of BTC and most altcoins are currently testing support ahead of a major meeting of financial regulators in the United States. 

Price action in the cryptocurrency market is in a somewhat dangerous state for bullish buyers. Its total market capitalization is down by roughly 1% to $1.34 trillion over the last day, per data from CoinGecko, while the prices of BTC and ETH are down 7.5% and 11.3% over the past seven days. Most major coins and tokens are in the red today, with some traders expecting a capitulatory move in the short term.

The cryptocurrency market is a sea of red today, with only select altcoins seeing slight gains. Source: Coin360

U.S. to discuss stablecoins today, causing concern

Perhaps putting more pressure on the cryptocurrency market is Friday's news that United States Treasury Secretary Janet Yellen has called a meeting — scheduled for Monday — of federal financial regulators to discuss stablecoins. "In light of the rapid growth in digital assets, it is important for the agencies to collaborate on the regulation of this sector and the development of any recommendations for new authorities," Yellen stated alongside an official announcement, per multiple sources.

Today's meeting will include the Treasury, the President's Working Group on Financial Markets, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation. The cryptocurrency markets may react to today's meeting — so traders may be prepping for some serious volatility. For example, worst-case-scenario plans to ban stablecoins could rock crypto markets in an unprecedented fashion.

The meeting also comes amid a period of prolonged fear in the BTC market. Per multifactorial market sentiment analysis from alternative.me, market participants remain extremely fearful — and have been for months.

The cryptocurrency market is struggling to come out of a place of extreme fear. Source: alternative.me

Top altcoin gainers and losers: Large-caps abstain from volatility

  • DMG/USDT +17.50%
  • XPR/USDT +15.01%
  • OM/USDT +12.48%
  • REP/USDT -7.98%
  • FLOW/USDT -8.09%
  • LSK/USDT -9.47%

There are no altcoins with large market capitalizations among the top performers or biggest losers on OKEx today, per the exchange's default time settings. Legacy altcoin XEM is today's top gainer among major altcoins after adding a modest 3.30%. On the opposite end of the spectrum, ENJ is the worst-performing large-cap after losing less than 3%.

XEM is the top-performing large-cap altcoin on OKEx today. Source: OKEx

BTC technical analysis: Capitulation concerns remain amid second-worst decline

The price of BTC is undeniably in dangerous waters today, having spent a prolonged period in an area of historical support. Failure to find enough buyers in this area to propel the price higher may lead to a capitulatory move — which could fall to roughly 27,000 USDT. In a more extreme scenario, such a move could see the leading cryptocurrency retest its previous all-time high near 20,000 USDT.

OKEx's BTC/USDT 4h chart — 7/19. Source: OKEx, TradingView

Interestingly, BTC's decline from its most recent all-time high is the second-longest in the foremost cryptocurrency's history.

ETH technical analysis: ETHBTC bearish as co-founder leaves

The price of ETH is still failing to outperform the cryptocurrency market leader. ETHBTC is trading inside of a descending triangle pattern — a typically bearish scenario — and is struggling to overcome the four-hour ribbon of exponential moving averages on the four-hour time frame.

If the price of BTC sees a capitulatory move, ETHBTC could fall as far as 0.05 BTC.

OKEx's ETH/BTC 4h chart — 7/19. Source: OKEx, TradingView

In Ethereum-related news, co-founder Anthony Di Iorio has announced his plan to leave the cryptocurrency industry amid concerns over his personal safety.

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OKEx Insights presents market analyses, in-depth features and curated news from crypto professionals.

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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