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Crypto Market Daily Highlights: DOGE Led a Mixed Top Ten Session

By:
Bob Mason
Published: Feb 1, 2023, 01:56 GMT+00:00

Following a bullish Tuesday session, the crypto market will be in for a choppy Wednesday, with the Fed Chair Powell press conference the main event.

Crypto news - FX Empire.

In this article:

Key Insights:

  • It was a mixed Tuesday session for the crypto top ten, with SOL bucking a bullish trend.
  • Fed fear eased ahead of today’s Fed interest rate decision and Powell press conference, with a bullish NASDAQ Index providing support.
  • The crypto market cap rose by $13.47 billion to end the day at $1,005 billion.

It was a mixed session for the crypto top ten on Tuesday. DOGE led the way while SOL bucked a bullish trend. BTC held onto the $23,000 handle for the sixth time in seven sessions.

A bullish NASDAQ Index delivered much-needed support on Tuesday. The NASDAQ Index rallied by 1.67% to wrap up the best January since 2001. US economic indicators supported the bullish pre-Fed session.

The Employment Cost Index rose by 1.0% in Q4, coming in softer than a Q3 1.2%, with employment wages rising by 1.0% versus 1.3% in Q3. Inflation indicators had more influence than a fall in consumer confidence in the New Year. The CB Consumer Confidence Index fell from 109.0 to 107.1.

From the crypto market, updates from the SEC v LBRY case delivered support. Amicus Curiae attorney John Deaton shared a tweet from LBRY, clarifying,

“Some people are saying the judge said LBC sold in the secondary market is definitely not a security. He didn’t say that. He said his order does not apply to secondary market sales and he’s not going to issue the injunction sought by the SEC, which arguably includes secondary sales.”

LBRY posted a tweet saying,

“Many are calling yesterday a victory for LBRY, but we haven’t won yet. It doesn’t matter if the judge says LBC is not a security if third parties (exchanges, etc.) are still too terrified of the SEC to work with it. That’s the real test.”

Updates from the Tuesday hearing delivered XRP price support, with XRP holders waiting on Court rulings from the SEC v Ripple case.

The Day Ahead

While the crypto market news will continue to draw interest, the Fed will likely be in the driving seat today. The markets expect a 25-basis point Fed interest rate hike. However, there is uncertainty over Fed Chair Powell’s press conference. A hawkish Powell talking about higher for longer at the expense of the US economy would weigh on riskier assets.

This morning, the NASDAQ mini was down 57.25 points.

NASDAQ correlation.
Total Market Cap – NASDAQ – 010223 Hourly Chart

Crypto Market Finds Pre-Fed NASDAQ Index Support

It was a bullish Tuesday session. A mixed start to the day saw the crypto market cap fall to a first-hour low of $985.37 billion before rising to a late high of $1,016 billion. Despite a late pullback, the market cap ended the session at $1,005 billion, marking a $13.47 billion gain for the day.

The crypto market cap rose by $248.52 billion in January.

Crypto market enjoys a bullish January.
Total Market Cap 010223 Daily Chart

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

It was a mixed session for the crypto top ten.

DOGE rallied by 8.60% to lead the way, with ADA (+4.56%) and XRP (+3.12%) finding strong support.

However, BNB (+1.63%), BTC (+1.34%), and ETH (+1.22%) trailed the front-runners, with SOL (-0.21%) bucking the top ten trend.

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

DydX (DYDX) rallied by 29.18% to lead the way, with threshold (T) and immutableX (IMX) seeing gains of 17.18% and 18.72%, respectively.

However, aptos (APT) and convex finance (CVX) fell by 2.79% and 1.96%, respectively, with tron (TRX) seeing a 0.15% loss.

24-Hour Liquidations Return to Below Normal Levels

Over 24 hours, crypto liquidations returned to below-normal levels as investors tracked the NASDAQ Index in recovery mode. Short positions had the higher share of liquidations, accounting for 60.88% of total liquidations. At the time of writing, 24-hour liquidations stood at $61.12 million versus $161.03 million on Tuesday morning.

Liquidated traders over the last 24 hours were also lower. At the time of writing, liquidated traders stood at 23,306 versus 53,503 on Tuesday morning. Crypto liquidations were lower over 12 hours while higher over four hours and one hour.

Crypto liquidations slide.
Total Crypto Liquidations 010223

According to Coinglass, 12-hour liquidations stood at $44.40 million, down from $94.13 million on Tuesday. However, four-hour liquidations rose from $9.93 million to $24.21 million, with one-hour liquidations up from $1.38 million to $8.78 million.

The chart below shows market conditions throughout the session.

Crypto market sees mixed end to the session.
Total Market Cap 010223 Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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