Total crypto market cap rises above $1T, and data suggests more upside is in store

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Bitcoin price remains strong and the total crypto market cap rallied above the $1 trillion mark this week even as negative newsflow continued to dominate headlines. noshitcoins explains why the market is strong.

Optimism faced 21% gains after a sharp increase in transaction volumes during an NFT incentive program called Optimism Quest.Perpetual contracts, also known as inverse swaps, have an embedded rate usually charged every eight hours. Exchanges use this fee to avoid exchange risk imbalances.

Interestingly, Aptos was the only exception as the altcoin presented a negative 0.6% weekly funding cost — meaning short sellers were paying to keep their positions open. This movement can be explained by the 91% rally in 7 days and it suggests that sellers expect some sort of technical correction.Traders can gauge the market's overall sentiment by measuring whether more activity is going through call options or put options.

Presently, the put-to-call volume ratio stands near 0.50 as the options market is more strongly populated by neutral-to-bullish strategies, favoring call options by 50%.Derivatives markets point to further upside potential Derivatives markets point to further upside potential and even if the market revisits the $950 billion market capitalization from Jan. 18, there is no reason for panic. Currently, Bitcoin option markets show whales and market makers favoring the neutral-to-bullish strategies.

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noshitcoins I'm glad it's happening. And I continue to regularly buy fundamental projects in ownr

noshitcoins One area of concern is Genesis Capital’s lparent company, the Digital Currency Group. The investment vehicle currently holds over $14 billion worth of Bitcoin positions for its holders, with investors unsure if Grayscale Bitcoin Trust assets could face liquidation

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