The total market capitalization of cryptocurrencies has been under pressure due to a bearish market structure for the past six weeks, with the descending wedge formation indicating that an eventual break to the upside would require extra effort from the bulls. The impending U.S. debt ceiling standoff is also a concern, even though most investors believe that the Biden administration will strike a deal before the effective default of its debt. Stablecoins such as USDC and DAI, which have short-term bonds and collateralized loans, are seen as a safe haven.

Derivatives markets show no signs of bearishness, with the seven-day funding rate for BTC and ETH being neutral, indicating balanced demand from leveraged longs and shorts using perpetual futures contracts. The put-to-call ratio for Bitcoin options volume has been below 1.0 for the past couple of weeks, indicating a higher preference for neutral-to-bullish call options. Investors seem hesitant to place additional bets until there's more clarity on the U.S. debt standoff, and bears are in a comfortable place according to derivatives metrics.