After bitcoin (BTC) faced its third straight drop, investors have become more confident in adding altcoin trades. For leading cryptocurrencies, the path to $50,000 has proven to be more difficult than previously thought.
On March 14, the European Union rejected a proposed rule that would ban the energy-intensive Proof of Work (PoW) mining algorithm used by Bitcoin and other cryptocurrencies, Euronews Next reported. Several EU MPs have pushed for a ban on Proof of Work mining due to energy concerns.
Bitcoin/USD price on FTX. Source: Trading View
In terms of performance, the total market capitalization of all cryptocurrencies has remained relatively flat over the past seven days, posting a modest 0.4% gain to $1.77 trillion. However, mid-cap altcoins, which managed to gain 17% or more in one week, do not clearly lag behind in the market as a whole.
Bitcoin is up 2.5% over the past seven days, while runner-up Ethereum (ETH) is up 3.6%. However, the altcoin rally that happened was not true. Here are the top winners and losers among the top 80 cryptocurrencies by market cap.
Weekly winners and losers among the top 80 coins. Source: Nomex
THORChain (RUNE) increased after the activation of synthetic tokens on March 10th. These derivatives are related to the value of other implied warranties. In the release of THORChain, the project decided to back their combinations of 50% of the underlying asset and 50% of RUNE.
Privacy coins Zcash (ZEC) and Monero (XMR) merged when U.S. President Joe Biden signed an executive order on March 9 that focused on creating a regulatory framework for cryptocurrencies and pointing out their potential role in circumventing sanctions.
Finally, Terra (LUNA) was assembled after Terraform Labs donated $1.1 billion to the Luna Foundation Guards (LFG) reserves on March 11th. LFG launched in January as part of a broader effort to expand the Terra ecosystem and improve network resilience. stack of coins.
On the other hand, Fantom (FTM) topped the list of worst-performing companies after two prominent Fantom Foundation actors Andre Cronje and Anton Nell announced their resignations.
Meanwhile, on March 10, Celo (CELO) received a hack on its third-party email service. A phishing message was sent to all 25,741 users, but the attack was quickly investigated and the Celo Foundation posted alerts on their social media.
Rope premium refers to retail flexibility
The OKX Tether (USDT) premium is a good indication of the demand for cryptocurrencies for retail traders in China. It measures the difference between China’s USDT peer-to-peer trading and the US dollar’s official currency.
Excessive buying tends to push the index above its fair value, which is 100%. On the other hand, Tether market supply drops during bear markets, resulting in a discount of 4% or more.
Tether (USDT) is peer-to-peer to USD/CNY. Source: OKH
The Tether premium is currently 100.7%, which is neutral. However, there has been a steady improvement over the past two months. This data indicates that retail demand is on the rise, which is positive given that the total capitalization of the cryptocurrency fell by 50% between January 1 and March 14.
Funding rates show no excitement
Perpetual contracts, also known as reverse swaps, have an internal rate that is typically charged every eight hours. Perpetual futures contracts are the derivatives of choice for retail traders because their prices tend to follow regular spot markets perfectly.
Exchanges use these fees to avoid currency risk mismatch. A positive funding rate indicates that longer contracts (buyers) require more exposure. However, the opposite situation occurs, when selling positions (sellers) require an additional effect, as a result of which the funding rate becomes negative.
The cumulative future funding rate for the seven days of March 14. Source: Coinglass
Note that the fund’s seven-day savings rate is low in most cases. This data indicates a balanced demand for leverage between long positions (buyers) and sellers (sell positions).
For example, a Polkadot (DOT) negative weekly interest rate of 0.30% equals 1.2% per month, which is not a burden for traders building futures positions. Usually, with an imbalance caused by excessive pessimism, this figure can easily exceed 5% per month.
Some would argue that the third failure to keep the price of bitcoin above $42,000 was the nail in the coffin of the bulls, as the cryptocurrency failed to show its strength during a period of global macroeconomic uncertainty and a massive commodity boom.