Crypto Market Daily Highlights – MATIC and ADA Lead Top Ten Pullback

Key Insights:

• It was a bearish Wednesday session for the crypto top ten, with MATIC and ADA seeing heavy losses.
• Hawkish Fed chatter and disappointing US economic indicators sent the NASDAQ Index and the crypto market into the red.
• The crypto market cap slid by $26.18 billion to end the day at $917.36 billion.

It was a bearish session for the crypto top ten on Wednesday. MATIC and ADA led the way down. Notably, BTC ended the session at sub-$21,000 for the first time in three sessions.

On Wednesday, US economic indicators and FOMC member chatter weighed on the NASDAQ Index and the broader crypto market.

In December, retail sales tumbled by 1.1%, with industrial production falling by 0.7%. Both numbers were worse than forecasts. Softer wholesale inflation figures provided little comfort, despite the producer price index rising by 6.2% year-on-year in December versus 7.3% in November.

While the stats raised further concerns about the US economy, FOMC member chatter contributed to the bearish sentiment. FOMC members James Bullard and Loretta Mester reportedly supported rates moving beyond 5% to bring inflation to target.

The NASDAQ Composite Index fell by 1.24% on Wednesday, with the S&P 500 ending the session with a 1.56% loss.

However, the crypto news wires also influenced, with reports of Genesis planning to file for bankruptcy weighing on investor sentiment.

The Day Ahead

Today, US economic indicators and FOMC member chatter will continue to influence. Philly Fed Manufacturing Index and jobless claims will be in focus. A slide in the Manufacturing Index and a fall in the jobless claims would fuel recession fears.

Following the hawkish chatter from Wednesday, further support of taking rates beyond 5% would also weigh in riskier assets, with corporate earnings also needing consideration. Netflix (NFLX) will be among the names releasing earnings results today.

This morning, the NASDAQ mini was down 2.75 points.

Crypto Market Tumbles on Recession Fears and Hawkish Fed Chatter

It was another choppy session on Wednesday. After a range-bound morning, the crypto market cap rose to an early afternoon high of $966.62 billion before hitting reverse. Weighed by recession fears and FOMC member chatter, the crypto market cap tumbled to a late afternoon low of $905.05 billion.

However, finding late support, the crypto market cap ended the session at $917.36 billion, marking a $26.18 billion loss on the day.

Despite the Wednesday sell-off, the crypto market cap is up $161 billion in January.

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

It was a bearish session for the crypto top ten.

MATIC and ADA slid by 5.56% and 5.78%, respectively, with BNB (-4.24%) taking a hit.

However, BTC (-2.14%), DOGE (-3.50%), ETH (-3.50%), and XRP (-2.23%) also struggled.

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

Kava (KAVA) rallied by 10.79% to lead the way, with shiba inu coin (SHIB) and XDC network (XDC) seeing gains of 5.88% and 1.48%, respectively.

However, gala (GALA) and cronos (CRO) slid by 9.75% and 10.04%, respectively, with casper (CSPR) falling by 8.68%.

24-Hour Liquidations Spike on Broad-Based Crypto Sell-Off

Over 24 hours, crypto liquidations spiked as the crypto market tumbled in response to the US economic indicators and Fed chatter. At the time of writing, 24-hour liquidations stood at $249.76 million versus $90.50 million on Wednesday morning.

Liquidated traders over the last 24 hours were also higher. At the time of writing, liquidated traders stood at 62,125 versus 22,045 on Wednesday morning. Crypto liquidations were higher over 12 and four hours while lower over one hour.

According to Coinglass, 12-hour liquidations stood at $228.28 million, up from $57.81 million on Wednesday, with four-hour liquidations rising from $9.52 million to $23.21 million. However, one-hour liquidations fell from $5.54 million to $3.91 million.

The chart below shows market conditions throughout the session.