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Bitcoin and altcoins pop to the upside, but upcoming macro events could cap the rally

Published 09/12/2022, 04:30 PM
Updated 09/12/2022, 08:00 PM
Bitcoin and altcoins pop to the upside, but upcoming macro events could cap the rally
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The 13% gains in the six days leading to Sept. 12 brought the total crypto market capitalization closer to $1.1 trillion, but this was not enough to break the descending trend. As a result, the overall trend for the past 55 days has been bearish, with the latest support test on Sept. 7 at a $950 billion total market cap.

Total crypto market cap, USD. Source: TradingView

An improvement in traditional markets has accompanied the recent 13% crypto market rally. The tech-heavy Nasdaq Composite Index gained 6.2% since Sept. 6 and WTI oil prices rallied 7.8% since Sept. 7. This data reinforces the high correlation versus traditional assets and places the spotlight on the importance of closely monitoring macroeconomic conditions.

Nasdaq futures and Bitcoin/USD 50-day correlation. Source: TradingView
Weekly winners and losers among the top-80 coins. Source: Nomics
Accumulated 7-day perpetual futures funding rate on Sept. 12. Source: Coinglass

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