Data indicates that investors are returning to fiat, and the absence of bullish momentum in the cryptocurrency market points to the possibility of another correction.
On July 18, the overall crypto market cap for cryptocurrencies surpassed $1 trillion, ending a painful 35-day decline below the crucial psychological threshold. Bitcoin (BTC) traded unchanged during the following seven days, near $22,400, while Ether (ETH) saw a 0.5 percent fall to $1,560.
The overall capitalization of all cryptocurrencies as of July 24 was $1.03 trillion, a negligible -0.5% seven-day fluctuation. The perceived stability is skewed toward the stable performance of Bitcoin and Ether and the stablecoin market cap of $150 billion. Seven of the top 80 coins experienced a decline of at least 9% during the period, which is concealed by the more comprehensive data.
Crypto Market Cap Might Slide Back Under $1T:
Even though the chart indicates crypto market cap has support near the $1 trillion level, this will take a little time until traders regain the ability to invest in cryptocurrencies. The U.S. Federal Reserve’s actions could have the biggest influence on price movement.
Furthermore, the tendency to wait could result from significant macroeconomic events anticipated for the coming week. Worse than anticipated data, in general, tends to raise investors’ anticipation of stimulative measures, which is advantageous for risk investments like cryptocurrencies. With the bearish nature, the crypto market cap is reducing too.
On July 26 and 27, the Federal Reserve will hold its policy meeting, and market participants anticipate a 75 basis point increase in interest rates. On July 27, the broadest indicator of economic activity, the second quarter of the United States’ gross domestic product (GDP), will be made public.
According to the data-driven Fear and Greed Index, investor sentiment has improved since July 18. The indicator is currently at 30 out of 100, up from 20 before July 18 since it was in the “severe terror” zone.