Total Crypto Market Cap Shows Strength Even After Merger and Federal Reserve Rate Hikes

Many of the top 80 cryptocurrencies have fallen more than 15% in the past week, but the Tether premium in markets at Asia-based futures watch traders remain calm.

Market analysis

Cryptocurrencies have been in a downtrend since mid-August after failing to break above the $1.2 trillion market cap resistance. Even with the current downtrend and a sharp 25% correction, it wasn't enough to break the 3-month uptrend.

Global crypto market capitalization fell 7.2% to $920 billion in the seven days to September 21. Investors wanted to play it safe before the meeting of the Federal Open Markets Committee, which decided to raise the interest rate by 0.75% .

Total Crypto Market Cap, in Billions of dollars. Source: TradingView

By raising the cost of borrowing cash, the monetary authority aims to curb inflationary pressures while increasing the burden on consumer credit and corporate debt. businesses. This explains why investors have moved away from risky assets, including stock markets, foreign currencies, commodities and cryptocurrencies. For example, WTI oil prices have fallen 6.8% since September 14 and the MSCI China stock index has fallen 5.1%.

Ether (ETH) also saw a 17.3% pullback over the seven-day period, and many altcoins performed even worse. The Ethereum network meltdown and its subsequent impact on other GPU-mined coins caused skewed results among the worst weekly performers.

Weekly winners and losers in the top 80 coins of currency. Source: Nomics

Chiliz (CHZ) rose 21.5% after two successful fan token launches of esports team MIBR and football team VASCO of the Brazil.

XRP gained 16.6% after Ripple Labs asked a federal judge to immediately decide whether the company's XRP token sales violated US securities laws.

ApeCoin (APE) gained 15% as community ex...