Crypto Market Daily Highlights – SOL Leads a Top Ten Sell-Off
- It was a bearish Tuesday session for the crypto top ten, with SOL, DOGE, and ADA seeing heavy losses.
- Binance news weighed on investor sentiment, with US economic indicators and the NASDAQ Index adding to the bearish mood.
- The crypto market cap tumbled by $23.30 billion to end the day at $977.06 billion.
It was a bearish session for the crypto top ten on Tuesday. ADA, DOGE, and SOL led the way down. Notably, BTC revisited $23,000 for the fourth consecutive session while failing to strike a new 2023 high.
Better-than-expected US private sector PMI numbers failed to provide support on Tuesday. The manufacturing PMI rose from 46.2 to 46.8, with the services PMI up from 44.7 to 46.6. Despite the increases, the private sector continued to contract at the turn of the year. While softer inflation raises hopes of a soft landing, economic uncertainty will likely linger near term.
The NASDAQ Index fell by 0.27%, with the S&P 500 seeing a 0.07% loss. However, the NASDAQ mini was down 67.75 points this morning, signaling a choppy US session.
From the crypto news wires, hopes of a painless Gemini bankruptcy for creditors failed to support a bullish session. News of Binance commingling customer funds with reserve tokens weighed on investor sentiment.
Profit-taking likely contributed to the latest pullback, with investors uncertain over what lies ahead. According to one Twitter poll, 47.5% of respondents voted for a BTC correction, while 52.5% favored a breakout to $25,000.
Today, there are no US economic indicators to provide direction. A lack of stats will leave corporate earnings and the NASDAQ Index to guide investors through the afternoon session.
However, investors should continue monitoring the crypto news wires. Binance news and updates on the Genesis and FTX bankruptcies will likely remain focal points.
Crypto Market Takes a Hit as Uncertainty Hits Investor Sentiment
It was a bearish Tuesday session. A bullish start to the day saw the crypto market cap rise to an early high of $1,016 billion before sliding to a late low of $966.01 billion. However, finding late support, the crypto market cap ended the day at $977.06 billion, marking a $23.30 billion loss for the day.
Despite the latest pullback, the crypto market cap is up $220 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.
From the CoinMarketCap top 100, it was a bearish session.
24-Hour Liquidations Spike in Response to a Late Sell-Off
Over 24 hours, crypto liquidations rose to above-normal levels because of a sharp increase in liquidations late in the session. Long positions saw a larger share of liquidations, accounting for 89% of total liquidations. At the time of writing, 24-hour liquidations stood at $196.52 million versus $103.65 million on Tuesday morning.
Liquidated traders over the last 24 hours were also higher. At the time of writing, liquidated traders stood at 59,258 versus 30,122 on Tuesday morning. Crypto liquidations were higher over 12 and four hours and over one hour.
According to Coinglass, 12-hour liquidations stood at $196.52 million, up from $73.73 million on Tuesday, with four-hour liquidations rising from $8.56 million to $143,48 million. One-hour liquidations increased from $0.824 million to $5.88 million.
The chart below shows market conditions throughout the session.