Crypto Market Daily Highlights – ADA and DOGE Struggle

Key Insights:

• It was a choppy Friday for the crypto top ten, with Ethereum (ETH) and Solana (SOL) struggling.
• Investor reaction towards the US nonfarm payroll figures tested buying appetite, with bitcoin failing to hold onto the $22,000 handle.
• The total crypto market cap declined by $6.8 billion to record the second fall in seven sessions.

It was a bearish Friday session for the crypto top ten. Bitcoin (BTC) ended the day flat, while SOL and ETH struggled.

Fears of a recession eased, with US nonfarm payroll figures highlighting another surge in hiring. In June, nonfarm payrolls increased by 372k, following a 384k jump in May.

However, the sharp increase in hiring also raised concerns that the Fed may hike rates more aggressively this month. Sentiment shifted despite the less hawkish FOMC meeting minutes.

On Wednesday, the FOMC meeting minutes highlighted the risk of rate hikes having a ‘larger-than-expected effect on economic growth.’ Prior to the minutes, the markets had priced in a 75 basis point rate hike for July. However, the minutes revealed that participants judged a 50 or 75 basis point increase as appropriate.

The nonfarm payroll numbers could allow the Fed to deliver another 75 basis point rate hike before taking the foot off the gas.

In response to the NFP numbers, the NASDAQ 100 hit reverse before finding late support to eke out a 0.12% gain. The crypto market tracked the NASDAQ throughout the day before a post-US market close pullback.

The Total Crypto Market Cap Sees Modest Decline

A bullish start to the Friday session saw the crypto market cap strike a high of $962 billion.

In response to the NFP numbers, the market cap slid to a low of $916 billion before wrapping up the day at $930 billion.

NASDAQ 100 support was again the key, though the $1 trillion mark remained elusive.

Despite the NFP figures, the threat of a global economic recession remained. The numbers also delivered market uncertainty over the July Fed monetary policy decision.

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

ADA (-2.51%) and DOGE (-2.07%) led the way down, with losses of 2.51% and 2.07%, respectively. ETH also struggled, falling by 1.94%.

BTC slipped by 0.09%, with BNB (-0.33%), SOL (-0.90%), and XRP (-0.88%) seeing modest losses.

From the CoinMarketCap top 100, Quant (QNT) led the way, rallying by 13%, with Internet Computer (ICP) gaining 11%.

Polygon (MATIC) and 1inchNetwork (1INCH) were also among the front runners.

Total Crypto Liquidations Reflect Poorer Market Conditions

As a result of the mixed session, 24-hour liquidations inched up through the Friday session.

This morning, 24-hour liquidations stood at $215 million, up from $169 million on Friday morning.

Liquidated traders over the last 24 hours also increased. At the time of writing, liquidated traders stood at 51,694 versus 42,406 on Friday.

One-hour liquidations reflected a late crypto market pullback.

According to Coinglass, one-hour liquidations stood at $10.6 million, up from $1.36 million on Friday. Those tracking crypto liquidations will look for a return to sub-$1 million over the weekend.

Daily News Highlights

• The crypto market brushed aside the US Treasury framework for digital assets.
• DeFi platform Aave (AAVE) unveiled another decentralized stablecoin.
• A Californian resident filed a lawsuit against Solana (SOL) for selling unregistered securities tokens.
• Fed Vice Chair Brainard talked of the need for strong crypto regulations to mitigate crypto risks to financial stability.
• UK thinktank the City of London Corporation called for global rules for cryptos to enable smooth cross-border and wholesale central bank digital asset (CBDC) payments.
• The fallout from the Three Arrows Capital (3AC) collapse continued. Blockchain.com faced a $270 million write-down on loans to 3AC.