Bitcoin’s got 3 strikes, but investors remain calm despite price drop

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After Bitcoin (BTC) faced its third consecutive rejection, investors became more confident in linking to the altcoin position. The road to $50,000 appears more challenging than ever for the leading cryptocurrency.

According to Euronews Next, on March 14, the European Union rejected a proposed rule that could ban energy-intensive proof-of-work (PoW) mining algorithms used by bitcoin and other cryptocurrencies. Several EU lawmakers are pushing for a ban on PoW mining over energy concerns.

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BTC/USD price on FTX. Source: TradingView

In terms of performance, the overall market capitalization of all cryptos was relatively flat over the past seven days, rising a modest 0.4% to $1.77 trillion. However, the apparent lack of performance in the overall market does not represent some mid-capitalization altcoins that managed to gain 17% or more in a week.

Bitcoin registered an increase of 2.5% over the past seven days, while the sub-leader of Ether (ETH) gained 3.6%. However, they were no match for the altcoin rally that took place. Below are the top gainers and losers of the 80 largest cryptocurrencies by market capitalization.

Weekly winners and losers in the top -80 coins. Source: Nomix

Thorchain (RUNE) rallied after enabling synthetic tokens on March 10th. Those derivatives are pegged to the value of the other underlying collateralized asset. In Thorchain’s version, the project has opted to back its synthesis with 50% of the underlying asset and 50% in RUNE.

Privacy tokens ZCash (ZEC) and Monero (XMR) United States President Joe Biden signed an executive order on March 9 that focused on establishing a regulatory framework for crypto – citing its potential role in bypassing sanctions. by mentioning.

Finally, Terra (LUNA) rallied after TerraForm Labs donated $1.1 billion to the Luna Foundation Guards (LFG) reserves on March 11. LFG was launched in January as part of a broader effort to grow the Terra ecosystem and improve the stability of the network’s stablecoins.

On the other hand, the Phantoms (FTM) led the worst performers when key Phantom Foundation team members André Cronje and Anton Nel announced their departure.

Meanwhile, Celo suffered a hack on its third-party email service on March 10. A phishing communication was sent to all of its 25,741 users, but the attack was quickly investigated, and the Celo Foundation posted alerts on its social channels.

Tether shows flexibility from premium retail

OKEx Tether (USDT) premium China-based retailer is a good gauge of crypto demand. It measures the gap between China-based USDT peer-to-peer trades and the official US dollar currency.

Excessive buying demand puts pressure on the indicator above fair value, which is 100%. On the other hand, Tether’s market offer floods during bearish markets, allowing 4% or more of the discount.

Tether (USDT) peer-to-peer vs USD/CNY. Source: OKX

Currently, the Tether premium stands at 100.7%, which is neutral. Nevertheless, there has been a steady improvement over the past two months. This data indicates that retail demand is on the rise, which is positive as overall cryptocurrency capitalization fell 50% between January 1 and March 14.

Funding rates show lack of enthusiasm

Perpetual contracts, also known as inverse swaps, have an embedded rate that is typically charged every eight hours. Perpetual futures are a preferred derivative of retail traders because their price closely tracks the regular spot markets.

Exchanges use this fee to avoid exchange risk imbalances. A positive funding rate indicates that longs (buyers) demand more leverage. However, the opposite occurs when shorts (sellers) require additional leverage, turning the funding rate negative.

Seven Days The accumulated perpetual futures funding rate as of March 14. Source: Coinglass

Note how the accumulated seven-day funding rate is uneven in most cases. Such data indicates demand for balanced leverage between longs (buyers) and sellers (shorts).

For example, Polkadots (DOT) has a negative 0.30% weekly rate equivalent to 1.2% per month, which is not a burden for traders creating futures positions. Typically, when imbalances are caused by extreme pessimism, that rate can easily exceed 5% per month.

Some might say that the third failure to hold bitcoin price above $42,000 was a nail in the coffin for bulls, as the cryptocurrency failed to show strength during global macroeconomic uncertainty and a massive commodity rally.

Still, there are no signs of bearishness from Asian retail traders, as measured by the CNY Tether premium, and no sign of leveraged shorts (sellers) pressure on the futures markets.

The views and opinions expressed here are solely those of Author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should do your own research when making a decision.