Let the data speak: the decline continues to expand, the trading volume continues to increase, the selling pressure is released, and bottom fishing is also underway. Has the bottom been successfully established?
The continuous decline this week has shattered the confidence of many traders, but often "everything will turn around when it reaches its extreme", and there is life to be had in desperate situations. Let's see what answers the market changes have brought us!
Market Cap
Following the decline on Wednesday and Thursday, the market value of 122 billion evaporated in a single day. However, among the market value declines, Ethereum actually had the largest decline today, with a single-day market value decline exceeding Bitcoin, a decline of about 62 billion. Because the last bullish sentiment of Ethereum's ETF's future approval was also broken today, Ethereum followed the decline. The altcoins also continued to fall.
Bitcoin's market share increased by 0.6% in a single day, basically breaking the recent record. Ethereum's market value fell by 0.3%, and the altcoin's market value shrank by 0.7%. The expansion of the altcoin's decline also proves the amplification of market pessimism and the selling pressure has been fully released.
Trading volume
The daily transaction volume surged to 150 billion, and the transaction volume of Bitcoin and Ethereum increased. This shows that the selling pressure was released in large quantities during the decline, and some people also bought against the trend during the decline. This may be the initial signal that the short-term selling pressure in the market has been released.
Funding
The total market value of stablecoins increased by 200 million.
The market value of USDT website has not changed much, but the on-chain data released by the official website is 1123.01, which is 183 million less than yesterday's data. The outflow of USDT funds increased compared with yesterday.
USDC market value increased by 218 million. Compared with the current situation, it goes without saying that the funds come from the market's trading share and are temporarily retained in the market. The USDC official website data will be updated tomorrow for the latest week. We will check the latest fund movements tomorrow to see if it is consistent with our judgment.
At the same time, USDT/USDC trading volume surged, with USDT surging 60% to 90.5 billion and USDT surging 26.39% to 11.4 billion. This shows that during the decline, in addition to funds leaving the market, funds in the market are also fully active and trading. Their own activity is actually a good thing for market stability.
--------------------------------------------------
Looking at the decline in market value alone, it is more pessimistic than yesterday, but observing the trading volume and the activeness of funds, the current sharp decline has also triggered the market's active mechanism. Liquidity is gradually increasing, and dormant funds and traders are also active, which is good for market stability in the short term.
Whether the market can turn around depends on tonight’s non-farm data and unemployment rate. We will look at the data later.
