Total Crypto Market Cap Continues to Crash as Dollar Index Hits 20-Year High
Total crypto market capitalization fell 6.9% in a week, while derivatives metrics reflect growing demand bearish bets.
![The total crypto market cap continues to crumble as the dollar index hits a 20 year high](https:// images.cointelegraph.com/images/1434_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDkvYmU5YTU1NzMtNjJlNC00ZDBhLTg2ZTYtN2E3MTI3ZDU4ZjlhLmpwZw==.jpg)
From a bearish perspective, it is highly likely that the crypto market entered a descending channel (or wedge) on August 15 after failing to break above the 1.2 trillion total market cap resistance. of dollars. Although the trend is not yet clearly identifiable, the last two weeks have not been positive.
![](https://s3.cointelegraph.com/uploads/2022-09/e39aba2b-055d-4222-819d-0cc99a4e4035.png)
For example, the total market capitalization of $940 billion seen on August 29 was the lowest in 43 days. Worsening conditions have been accompanied by a sharp correction in traditional markets, and the tech-heavy Nasdaq Composite Index has fallen 12% since August 15 and even WTI oil prices have fallen by 11% from August 29 to September 1. p>
Investors sought refuge in the dollar and US Treasuries after Federal Reserve Chairman Jerome Powell reiterated the bank's commitment to containing inflation by tightening the economy. As a result, investors took profits on riskier assets, causing the US dollar index (DXY) to hit its highest level in more than two decades at 109.6 on September 1. The index measures the strength of the dollar against a basket of major foreign currencies. p>
Most importantly, the regulatory news feed remains largely unfavorable, particularly after U.S. federal prosecutors requested internal records from crypto exchange Binance to investigate possible money laundering and the recruitment of American customers. Since late 2020, authorities have been investigating whether Binance violated the Bank Secrecy Act, according to Reuters.
Crypto Investor Sentiment Reenters Bearish ZoneThe risk-...
![Total Crypto Market Cap Continues to Crash as Dollar Index Hits 20-Year High](https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDkvYmU5YTU1NzMtNjJlNC00ZDBhLTg2ZTYtN2E3MTI3ZDU4ZjlhLmpwZw==.jpg?#)
Total crypto market capitalization fell 6.9% in a week, while derivatives metrics reflect growing demand bearish bets.
![The total crypto market cap continues to crumble as the dollar index hits a 20 year high](https:// images.cointelegraph.com/images/1434_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDkvYmU5YTU1NzMtNjJlNC00ZDBhLTg2ZTYtN2E3MTI3ZDU4ZjlhLmpwZw==.jpg)
From a bearish perspective, it is highly likely that the crypto market entered a descending channel (or wedge) on August 15 after failing to break above the 1.2 trillion total market cap resistance. of dollars. Although the trend is not yet clearly identifiable, the last two weeks have not been positive.
![](https://s3.cointelegraph.com/uploads/2022-09/e39aba2b-055d-4222-819d-0cc99a4e4035.png)
For example, the total market capitalization of $940 billion seen on August 29 was the lowest in 43 days. Worsening conditions have been accompanied by a sharp correction in traditional markets, and the tech-heavy Nasdaq Composite Index has fallen 12% since August 15 and even WTI oil prices have fallen by 11% from August 29 to September 1. p>
Investors sought refuge in the dollar and US Treasuries after Federal Reserve Chairman Jerome Powell reiterated the bank's commitment to containing inflation by tightening the economy. As a result, investors took profits on riskier assets, causing the US dollar index (DXY) to hit its highest level in more than two decades at 109.6 on September 1. The index measures the strength of the dollar against a basket of major foreign currencies. p>
Most importantly, the regulatory news feed remains largely unfavorable, particularly after U.S. federal prosecutors requested internal records from crypto exchange Binance to investigate possible money laundering and the recruitment of American customers. Since late 2020, authorities have been investigating whether Binance violated the Bank Secrecy Act, according to Reuters.
Crypto Investor Sentiment Reenters Bearish ZoneThe risk-...
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