plus they offer… pic.twitter.com/2nuqd5ljVY— Crypto Tea (@CryptoTea_) June 8, 2023
Despite being spared from the attacks coming from the SEC, the vice-leader Ether (ETH) traded down 3.5% between June 4 and June 11 after co-founder Vitalik Buterin stated that the Ethereum network would “fail” if scaling doesn’t go through. In a June 9 post via his personal blog, Buterin explained that the success of Ethereum depends on layer-2 scaling, wallet security and privacy-preserving features.Derivatives markets show balanced leverage demandPerpetual contracts, also known as inverse swaps, have an embedded rate that is usually charged every eight hours.A positive funding rate indicates that longs (buyers) demand more leverage. Still, the opposite situation occurs when shorts (sellers) require additional leverage, causing the funding rate to turn negative.Perpetual futures accumulated 7-day funding rate on June 11. Source: CoinglassThe seven-day funding rate for BTC and ETH was neutral, indicating balanced demand from leveraged longs (buyers) and shorts (sellers) using perpetual futures contracts. Curiously, BNB, SOL and ADA displayed no excessive short demand after a 15% or higher weekly price decline.Tether demand in Asia shows modest resilienceThe Tether (USDT) premium is a good gauge of China-based crypto retail trader demand. It measures the difference between China-based peer-to-peer trades and the United States dollar.Excessive buying demand tends to pressure the indicator above fair value at 100%, and during bearish markets, Tether’s market offer is flooded, causing a 2% or higher discount.Tether (USDT) peer-to-peer vs. USD/CNY. Source: OKXCurrently, the Tether premium on OKX stands at 99.8%, indicating a balanced demand from retail investors. Consequently, the indicator shows resilience considering the cryptocurrency markets dropped 17.7% over the last eight weeks to $1.06 trillion from $1.29 trillion.Related: Democrats’ ‘war on crypto’ will lose its key voters, Winklevoss twinsGiven the balanced demand according to the funding rate and stablecoin markets, bulls should be more than satisfied, given that the recent regulatory FUD was unable to break the cryptocurrency market capitalization below $1 trillion.It is unclear whether the market will be able to break from the bearish trend. Moreover, there is no apparent rationale for bulls to jump the gun and place bets on a V-shaped recovery, given the uncertainty in the regulatory environment. Ultimately, bears are in a comfortable place despite the resilience in derivatives and stablecoin metrics.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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