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Crypto investors are seeking refuge in stablecoins
September has historically been the weakest month for the crypto market, and there isn’t much optimism to identify this year either. So far in September, all our indexes are either flat or slightly down. The Mid Caps Index is flat, bitcoin is down 2%, the Small Caps Index has declined by 5%, and the Large Caps Index is the worst performer after falling by 6%.The Large Caps Index’s poor performance is mainly caused by ETH, which experienced a sell-off following the merge last week. Its underperformance has resulted in it losing a 1.9 p.p. market share over the past seven days.Preview
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Crypto market participants have been fearful for 169 days
The crypto market sentiment has been fearful since early April, as indicated by the Fear and Greed Index. The market has been in the fearful territory for 169 days, the most extended stay since the Fear and Greed Index’s inception in 2018. The market sentiment improved slightly ahead of Ethereum’s merge but has since fallen considerably as the merge turned out to be a sell-the-news event.Preview
The bitcoin spot volume stays at yearly highs
Surging trading activity leading up to the merge led the overall crypto trading volumes to reach elevated levels. The bitcoin spot volume was no exception, as its 7-day average grew to a yearly high of $12.7 billion. With the merge behind us, trading activity has slightly contracted over the past week. Bitcoin’s 7-day average spot volume currently sits at $10.8 billion.Preview
Bitcoin’s volatility retracts to normal after a turbulent period
Bitcoin and the overall crypto markets experienced a volatility burst at the beginning of September. The crypto market has calmed down over the past week, as indicated by bitcoin’s 7-day volatility stabilizing close to its historical average at 3.7%. This volatility stabilization will likely be short-lived, as the FED will hold its monthly FOMC meeting on Wednesday, which has been a catalyst for volatility surges on multiple occasions this year.Preview