Is the cryptocurrency market about to break its 10-week losing streak?

The cryptocurrency overall market capitalization fell to $1.02 trillion on June 15, its most affordable level in three months. But while the derivatives markets resilience and end-of-week price gains amid unpredictability in stablecoins reserves offers expect bulls, it might be too soon to celebrate.Crypto regulatory conditions deteriorateThe past couple of week have seen a bearish trend sustained by regulatory unpredictability. Recently, Bitcoin (BTC) and BNB saw 2.5% gains, but XRP dropped 5.2%, and Ether (ETH) traded down 0.7%. Total crypto market cap in USD, 1-day. Source: TradingViewNotice that the 10-week long pattern has evaluated the support level in multiple instances, signaling that bulls will have a tough time breaking from the bearish trend while regulative conditions have actually gotten worse throughout the globe.For beginners, New York-based derivatives exchange Bakkt is delisting Solana (SOL), Polygon (MATIC) and Cardano (ADA) due to current regulative developments in the United States. The choice follows last weeks suits brought by the Securities and Exchange Commission (SEC) against crypto exchanges Binance and Coinbase. Related: Why is the crypto market up today?More just recently, on June 16, Binance has actually been the topic of a preliminary investigation in France given that February 2022. The France-based arm of the crypto exchange supposedly stopped working to get an operating license and illegally used its services to French consumers. The exchange did not have Know-Your-Customer treatments, according to regulators.Also on June 16, Binance announced its departure from the Netherlands, with users being asked to withdraw their funds as quickly as possible. The choice to leave the Dutch market took place after the exchange stopped working to get a virtual asset company (VASP) license.Despite the aggravating crypto regulative environment, two derivatives metrics show that bulls are not yet surrendering. Theyll likely have a hard time breaking the bearish rate formation to the upside.Derivatives reveal well balanced demand for BTC, ETH leveragePerpetual contracts, also known as inverse swaps, have an embedded rate that is typically charged every eight hours. A positive funding rate indicates that longs (buyers) require more utilize. Still, the opposite scenario happens when shorts (sellers) require extra utilize, triggering the financing rate to turn negative.Perpetual futures accumulated 7-day financing rate on June 17. Source: CoinglassThe seven-day funding rate for BTC and ETH is neutral, showing balanced demand from leveraged longs (purchasers) and shorts (sellers) utilizing continuous futures agreements. BNB was the only exception, with traders paying up to 1% per week for short bets, which can be discussed by the included threats after regulatory examination over the Binance exchange.Tether FUD harms USDT premiumThe Tether (USDT) premium is a great gauge of China-based crypto retail trader need. It measures the distinction in between China-based peer-to-peer trades and the United States dollar.Excessive purchasing demand tends to push the indicator above reasonable value at 100%, and during bearish markets, Tethers market offer is flooded, triggering a 2% or greater discount.Tether (USDT) peer-to-peer vs. USD/CNY. Source: OKXThe Tether premium in Asian markets fell to 99.2% after being flat given that June 6, showing moderate pain. Reports on June 16 on Tether reserves direct exposure to Chinese financial obligation markets could have been the cause.Potential market triggersDerivatives metrics displayed strength thinking about the strong regulatory activity targeted at crypto exchanges. Bears are yet to prove their strength if they mean to press crypto below the $1 trillion mark.Related: 3 essential Ether price metrics point to growing resistance at the $1,750 levelDespite the most current bounce from the support level, any gains above $1.12 trillion in capitalization (up 10% from the $1.02 trillion low) will likely be brief over the next few months.Therefore, with the Bitcoin halving still over 300 days away, the bulls are presently pinning their hopes on a Bitcoin ETF approval and/or a Federal Reserve rate cut as potential bull market catalysts. This short article does not contain investment recommendations or recommendations. Every investment and trading move includes danger, and readers need to conduct their own research when deciding.
This short article is for general information functions and is not intended to be and need to not be taken as legal or investment guidance. The viewpoints, thoughts, and views expressed here are the authors alone and do not necessarily show or represent the views and viewpoints of Cointelegraph.

The choice to leave the Dutch market occurred after the exchange failed to acquire a virtual asset service company (VASP) license.Despite the getting worse crypto regulative environment, two derivatives metrics show that bulls are not yet throwing in the towel. It determines the difference in between China-based peer-to-peer trades and the United States dollar.Excessive purchasing need tends to push the indicator above fair value at 100%, and throughout bearish markets, Tethers market deal is flooded, causing a 2% or higher discount.Tether (USDT) peer-to-peer vs. USD/CNY. Source: OKXThe Tether premium in Asian markets fell to 99.2% after being flat since June 6, indicating moderate discomfort. Reports on June 16 on Tether reserves exposure to Chinese debt markets might have been the cause.Potential market triggersDerivatives metrics showed durability thinking about the strong regulatory activity aimed at crypto exchanges.

Other Questions People Ask

Is the cryptocurrency market about to break its 10-week losing streak due to regulatory changes?

The cryptocurrency market's potential to break its 10-week losing streak is significantly impacted by recent regulatory changes. With exchanges like Bakkt delisting major cryptocurrencies due to regulatory pressures, the bearish trend may continue. This uncertainty creates a challenging environment for bulls, making it difficult to establish a sustained upward momentum.

What indicators suggest the cryptocurrency market might break its 10-week losing streak?

Despite the ongoing bearish trend, some indicators suggest that the cryptocurrency market could potentially break its 10-week losing streak. The neutral funding rates for Bitcoin and Ethereum indicate balanced demand from both buyers and sellers. Additionally, any significant gains above the $1.12 trillion market cap could signal a shift, although these gains may be temporary given the current regulatory landscape.

How do derivatives metrics influence the possibility of the cryptocurrency market breaking its 10-week losing streak?

Derivatives metrics play a crucial role in assessing whether the cryptocurrency market can break its 10-week losing streak. The balanced demand reflected in perpetual contracts suggests that traders are cautiously optimistic, despite regulatory challenges. However, the pressure on Binance and other exchanges could hinder any potential upward movement in prices.

What role does Tether play in the cryptocurrency market's potential to end its 10-week losing streak?

Tether's performance is a significant factor in the cryptocurrency market's potential to end its 10-week losing streak. The recent drop in Tether's premium indicates moderate discomfort among traders, which could affect overall market sentiment. If Tether's stability improves, it may provide the necessary support for a bullish reversal in the market.

Are there any catalysts that could help the cryptocurrency market break its 10-week losing streak?

Several potential catalysts could help the cryptocurrency market break its 10-week losing streak, including Bitcoin ETF approvals and Federal Reserve rate cuts. These events could instill confidence among investors and encourage buying activity. However, with regulatory scrutiny intensifying, it remains uncertain whether these catalysts will be enough to sustain a rally in the near term.