Crypto Daily Market Highlights: Regulatory Risk and Fed Fear Weigh

Key Insights:

• It was a bearish end to the month for the crypto top ten on Tuesday, with ADA leading the losses.
• Regulatory activity and Fed Fear continued to weigh, with a bearish NASDAQ Composite Index adding further selling pressure.
• The crypto market cap fell by $16.29 billion, ending the day at $1,015 billion.

It was a bearish session for the crypto top ten on Tuesday. ADA led the top ten into the red. The bearish session left BTC short of $24,000 for the fourth consecutive session.

US economic indicators failed to deliver support despite weaker-than-expected consumer confidence numbers in February. The CB Consumer Confidence Index fell from 106.0 to 102.9.

Housing sector data also sent a bearish signal, with the S&P/CS HPI Composite – 20 n.s.a rising by 4.6% year-over-year in December. In November, the Index rose by 6.8%. Elevated US mortgage rates affected demand, leading to a pullback in house price growth.

The NASDAQ Composite Index fell by 0.10% on Tuesday to round off a bearish month. The threat of a higher for longer Fed interest rate trajectory continued weighing on investor sentiment. This morning, the NASDAQ mini was down 36.25 points.

However, crypto market news added to the bearish mood. Regulatory activity continued to draw attention. News of the SEC issuing Robinhood (HOOD) a subpoena sounded the alarm bells. There were also rumors of Visa (V) and Mastercard (MA) reconsidering their crypto plans.

The Day Ahead

Investors should continue to monitor the crypto news wires for regulatory activity and US lawmaker chatter. Binance and FTX updates need consideration together with news from the ongoing SEC v Ripple case.

Economic indicators will also draw interest. China’s private sector PMIs will influence ahead of the US session. We expect weak numbers from China to reignite recession fears and test the appetite for riskier assets.

US economic indicators and the NASDAQ Composite Index will influence the afternoon session. US manufacturing PMI numbers for February will draw plenty of interest. An unexpected fall in the ISM Manufacturing PMI would be bearish. However, investors should also monitor FOMC member chatter throughout the day.

Crypto Market Cap Rises for a Second Month Despite Bearish Sentiment

It was a choppy end to the month. After a mixed morning, the total crypto market cap rose to a late afternoon high of $1,039 billion before hitting reverse. The reversal saw the crypto market cap slide to a low of $1,009 billion before steadying. A late partial recovery left the crypto market cap at $1,015 billion, marking a $16.29 billion loss on Tuesday.

A seventh daily loss from eight sessions left the crypto market cap with a modest $10.73 billion gain in February. Nonetheless, the crypto market extended its winning streak to two months, its best run since March 2022.

The Crypto Market Movers and Shakers from the Top Ten and Beyond

It was a bearish session for the crypto top ten.

ADA slid by 3.56% to lead the way down, with MATIC (-3.26%) close behind.

BNB (-1.15%), BTC (-1.53%), DOGE (-0.74%), ETH (-1.71%), and XRP (-0.53%) also saw red.

From the CoinMarketCap top 100, it was a mixed session.

SingularityNET (AGIX) and immutableX (IMX) rallied by 11.18% and 9.49%, respectively, with casper (CSPR) rising by 0.21%.

However, ssv.network (SSV) and conflux (CFX) slid by 14.68% and 13.51%, respectively, with NEM (XEM) falling by 9.73%.

24-Hour Liquidations Fall on Bearish Tuesday Session

Over 24 hours, crypto liquidations pulled further back from normal levels. Long positions had a higher share of liquidations, accounting for 74.69% of total crypto liquidations. This morning, 24-hour liquidations stood at $66.69 million, down from $81.97 million on Tuesday morning (UTC).

However, liquidated traders over the last 24 hours were higher. This morning, liquidated traders stood at 28,953 versus 26,357 on Tuesday morning. Crypto liquidations were lower over 12, while higher over four hours and one hour.

According to Coinglass, 12-hour liquidations stood at $51.26 million, down from $62.38 million on Tuesday morning. However, four-hour liquidations rose from $8.47 million to $30.32 million, with one-hour liquidations rising from $0.347 million to $0.619 million.

The chart below shows market conditions throughout the session.