Key Insights:
- It was a mixed Wednesday session and end to the month for the crypto top ten,
- Ethereum (ETH) led the way, supported by investor sentiment towards the Merge, while Cardano (ADA) saw red despite progress towards the Vasil hard fork.
- The total crypto market cap rose by a modest $2.0 billion to $956.5 billion.
It was a mixed Wednesday session for the crypto top ten. Bitcoin (BTC) revisited sub-$20,000 for a fifth consecutive session before wrapping up the day in positive territory. However, ETH led the way, supported by investor sentiment towards the Merge.
US economic indicators and hawkish Fed chatter delivered a testy session. In August, the ADP reported a 132k increase in employment, down from 268k in July and 380k in June. While the numbers have a limited influence on the Fed, the markets consider the ADP numbers as a precursor to the nonfarm payroll figures due tomorrow.
The weaker August figure was crypto-friendly. However, Fed chatter tested buyer demand.
Voting member Loretta Mester reportedly said that the Fed would need to hike rates above 4% and hold to bring inflation to target. Mester added that she did not expect the Fed to cut rates in 2023 and will base her September decision on inflation rather than the jobs report.
Mester’s comments supported Fed Chair Powell’s stance on monetary policy that sent the market into a tailspin last Friday.
Disappointing economic data from the US and hawkish FOMC member chatter left the NASDAQ 100 down 0.56% on Wednesday. It was also a bearish month, with the NASDAQ 100 sliding by 4.64%. The bearish mood tested buyer demand for the cryptos through the second half of the day.
Crypto Market Cap Ends August on High Despite Hawkish Fed Chatter
On Wednesday, the total crypto market cap fell to an early low of $952.3 billion before striking a high of $960.0 billion. However, late in the session, the market cap fell back to sub-$950 billion before a late recovery.
The total market cap rose by $2.0 billion on Wednesday. For August, the market cap slid by $105.2 billion to $956.5 billion.
However, ADA fell by 1.55%, with BNB (-0.82%) and DOGE (-0.30%) also in the red.
From the CoinMarketCap top 100, it is a mixed session.
Chiliz (CHZ) led the way, rallying by 10.81%, with Lido DAO (LDO) and Curve DAO Token (CRV) seeing gains of 10.56% and 7.79%, respectively.
Helium (HNT) led the way down, however, falling by 5.37%, with Elrond (EGLD) and Dash (DASH) seeing losses of 3.09% and 2.47%, respectively.
Crypto Liquidations Ease Back over 24-Hours but Climb Over the Hour
Over 24 hours, total liquidations slipped back, supported by the weaker-than-expected ADP employment change figures. Fed Fear lingered, however, leading to a choppy end to the Wednesday session.
At the time of writing, 24-hour liquidations stood at $164.73 million, down from $239.14 million on Wednesday morning.
Liquidated traders also declined over the last 24 hours. At the time of writing, liquidated traders stood at 40,952 versus 60,258 on Wednesday morning. Liquidations over 12 hours and four hours fell, while one-hour liquidations increased, reflecting the bearish end to the Wednesday session.
According to Coinglass, 12-hour liquidations stood at $75.84 million, down from $167.66 million on Wednesday morning. 4-hour liquidations declined from $37.78 million to $12.42 million, while one-hour liquidations were up from $1.72 million to $3.60 million. The chart below shows market conditions throughout the session.
