Summary:
The cryptocurrency market has been under pressure for the past six weeks due to a bearish market structure, driving the total market capitalization to its lowest level in two months at $1.13 trillion. The descending wedge formation initiated in mid-April could last until July, indicating that an eventual break to the upside would require an extra effort from the bulls. The impending U.S. debt ceiling standoff adds to the uncertainty in the macroeconomic environment, making it difficult for crypto bulls to break the downtrend.
Key Points:
– The cryptocurrency market has been under pressure for the past six weeks due to a bearish market structure.
– The descending wedge formation initiated in mid-April could last until July, indicating that an eventual break to the upside would require an extra effort from the bulls.
– The impending U.S. debt ceiling standoff adds to the uncertainty in the macroeconomic environment, making it difficult for crypto bulls to break the downtrend.
– Gold, which used to be considered the world’s safest asset class, has also been affected by the recent correction.
– Stablecoins like USDC and DAI are being used as a safe haven by investors.
– Perpetual contracts and options markets show no signs of bearishness but traders seem hesitant to place additional bets until there’s more clarity on the U.S. debt standoff.
