Chart of the Day
The broader crypto market erased the week’s early losses over the weekend. BTC briefly flirted with the $22k handle, before ending its four-day winning streak on Sunday with a tumble below the $21k support level. As of the time of writing, the largest cryptocurrency by market cap has risen 3.6% in the last 24 hours, placing it back above the $22k level and the 100-hour moving average. BTC is looking to accelerate its potential upside gains after establishing a stronger foothold near the $21k zone. Bybit blog reports.
However, some analysts believe that the recent price resilience may not translate into a further recovery for BTC. That said, on-chain metrics reveal that over 80% of the total USD-denominated wealth invested in BTC has been dormant for over three months. The percentage of dormant supply can be used to gauge the end of bear runs, as previous bearish cycles often approach an end after the supply surpasses the 80 percent mark.
Despite maintaining a strong correlation with BTC, ETH has outpaced the largest cryptocurrency by market cap in the recent rally. ETH is poised to test the $1,500 handle after posting a 7.6% increase during the same period. Most major altcoins are in the green, with MATIC leading the pack on a double-digit percentage gain over a similar time frame.
Back to (the) Futures
The leverage ratio in the futures market has begun to trend up after investors’ speculations pivoted towards a 75pbs rate hike at the end of July. However, volatility continues to plague the derivatives market over the weekend, with the prices of major digital assets fluctuating in a wider range.
Funding rates across major centralized exchanges for BTC perpetual contracts are seeing a significant uptick. It is possible to expect a trend reversal in the near term as sellers are showing signs of fatigue. However, the long-term outlook is still shrouded with uncertainties. In the options market, the implied volatility rose but has since remained relatively unchanged, while skews saw some relief despite staying in the negative territory.
Talk of the Town
The much-anticipated gaming platform, Otherside, is open for business to a select group of players. On Saturday, Yuga Labs, the team behind Otherside, invited 4,300 players to an immersive tour of the ape-inspired online platform. The players invited to the cyber excursion were owners of plots of land within the game, dubbed “Otherdeeds”. A litepaper was released shortly after the trip, announcing that only Otherdeed owners and “selected third-party developers” will be allowed to participate in the game during its first phase, where they will be able to contribute to the platform’s construction and shape its core functionalities.
Crypto & blockchain articles are created with the support of ByBit – leading crypto platform.