Crypto Market Daily Highlights: IMF Floats Crypto Ban Idea at G20

Key Insights:

• It was a mixed Saturday session for the crypto top ten, with BNB and DOGE bucking a bearish trend.
• Updates from the G20 weighed, with the Core PCE Price Index numbers and hawkish Fed chatter from Friday resonating.
• The crypto market cap fell by $4.16 billion, ending the day at $1,016 billion.

It was a mixed session for the crypto top ten on Saturday. MATIC led the way down for a second consecutive session, while BNB and DOGE bucked the bearish trend. The bearish saw BTC revisit sub-$23,000 for the second time in ten sessions.

Fed Fear continued to grip the crypto market on Saturday. US economic indicators from Friday and hawkish Fed chatter fueled bets of a more aggressive Fed interest rate trajectory to bring inflation under control.

The Core PCE Price Index increased by 4.7% year-over-year in January versus an upwardly revised 4.6% in December. In early February, Fed chair Powell talked about early signs of disinflation. The numbers from Friday suggested otherwise and puts 50-basis point rate hikes back to the table.

FOMC member Loretta Mester highlighted the need for more action from the Fed, adding to the bearish mood. The NASDAQ Composite Index and the crypto market responded to the stats and Loretta Mester, falling by 1.69% and 2.77%, respectively.

Crypto Market News Delivered a Bearish Tone

As investors consider the shift in sentiment toward Fed monetary policy, increased regulatory scrutiny has also weighed on buyer appetite.

This weekend, cryptos were a hot topic at the G20. India called for a common framework to tackle the risks associated with cryptocurrencies. US Treasury Secretary Janet Yellen supported the need for a robust regulatory framework, saying,

“We haven’t suggested outright banning of crypto activities, but it is critical to put in place a strong regulatory framework. We’re working with other governments.”

IMF Managing Director Kristalina Georgieva gave a sterner view, suggesting that banning crypto should be an option.

The comments from the IMF followed its paper on Thursday outlining how to respond to the rise of crypto assets and the associated risks. In recent years, the IMF has maintained an anti-crypto position, raising concerns over cryptos and financial stability. India has also taken a harder line on crypto. In March 2022, the IMF and the Indian government worked on a draft crypto policy.

The Day Ahead

With no US economic indicators to consider, investors should 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.

Further updates from the G20 would also draw interest, with the anti-crypto theme likely to weigh on investor sentiment as regulators ramp up activity within the digital asset space.

In the final hour, the NASDAQ mini will provide direction as investors consider the Fed policy outlook.

Crypto Market Extends Losing Streak to Five Sessions

It was a bearish Saturday session. A mixed start to the day saw the crypto market cap rise to an early morning high of $1,025 billion before hitting reverse. The reversal saw the crypto market cap slide to a late low of $996.09 billion.

However, finding late support, the crypto market cap ended the day at $1,016 billion, marking a modest $4.16 billion (-0.41%) loss on Saturday.

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

It is a mixed session for the crypto top ten.

MATIC led the way down, falling by 1.30%, with ADA (-1.09%) also struggling.

ETH (-0.81%), BTC (-0.09%), and XRP (-0.13%) saw relatively modest losses.

However, BNB avoided the red, rising by 0.07%, with DOGE ending the day flat.

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

dYdX (DYDX) gained 6.68% to lead the way, with stacks (STX) and ssv.network (SSV) rising by 4.54% and 5.74%, respectively.

However, optimism (OP) slid by 10.05%, with singularityNET (AGIX) and synthetix (SNX) seeing losses of 9.21% and 6.51%, respectively.

24-Hour Liquidations Slide on a Fifth Day in the Red

Over 24 hours, crypto liquidations returned to below-normal levels. Long positions had a higher share of liquidations, accounting for 83.49% of total crypto liquidations. This morning, 24-hour liquidations stood at $71.45 million, down from $164.11 million on Saturday morning (UTC).

Liquidated traders over the last 24 hours were also lower. This morning, liquidated traders stood at 38,441 versus 59,928 on Saturday morning. Crypto liquidations were lower over 12 while higher over four hours and one hour.

According to Coinglass, 12-hour liquidations stood at $59.58 million, down from $146.90 million on Saturday morning. However, four-hour liquidations rose from $20.42 million to $33.45 million, with one-hour liquidations increasing from $1.36 million to $2.98 million.

The chart below shows market conditions throughout the session.