Severe lack of investor confidence drives the crypto market down, the tendencies hint at further decline
The total cryptocurrency market capitalization dropped by 24% between Nov. 8 and Nov. 10, reaching a $770 billion low. That was the lowest value indicator registered since December 2020. Despite a 16% recovery, the market prospects remain subdued.
A massive weekly drop was linked to the FTX bankruptcy saga which hit the market hard. Bitcoin lost 18.3% of its worth, while ETH declined 22.6%. The top altcoins decreased 30% or more in the period. Most stablecoins lost their pegs as well.
According to the Cointelegraph analysis, the Bitcoin options market remains dominated by neutral-to-bearish strategies. Taking into account the absence of stablecoin demand in Asia and negatively skewed perpetual contract premiums, analysts conclude that negative investor sentiment will not let the $850 billion market capitalization support hold in the near term.