While it was a mixed end to the week, ADA ended the week with solid gains. Regulatory risk and the Fed remain headwinds, however.
It was a mixed Sunday session for the crypto market, with lawmaker chatter from the US testing investor resilience over the weekend.
In recent days, a number of lawmakers targeted cryptos, highlighting the risks and calling for increased oversight.
The collapse of TerraUSD (UST) and Terra LUNA has given lawmakers cause to put the spotlight on the crypto market.
Crypto winter chatter and talk of exchanges laying off employees or freezing headcounts continued to add to the negative mood.
For bitcoin (BTC), five sessions in the green from seven, which included a 7.69% rally on Monday, ended a nine-week losing streak.
On Sunday, the total crypto market cap fell to a day low of $1,196 billion before ending the day at $1,214 billion.
A fall to sub-$2,000 billion for a third consecutive session continued to reflect the bearish sentiment across the market.
For the crypto bulls, steering well clear of the May 12 current year low of $1,082 billion will remain the key.
BTC rose by 0.18% on Sunday. Following a 0.56% gain on Saturday, BTC ended the week up by 1.51% to $29,898.
Across the rest of the top ten, ADA (+0.18%), ETH (+0.07%), and XRP (+0.77%) joined BTC in positive territory.
BNB (-0.76%), Dogecoin (DOGE) (-1.03%), and SOL (-1.28%) ended the day in the red, however.
For the week, divergence across the top ten was evident. ADA was the success story, rallying by 22.0%, while SOL slid by 11.9%.
Market conditions were benign relative to mid-week. According to Coinglass, 24-hour liquidations stood at $81.52 million. While up from levels seen on Saturday, liquidations remained well below $500 million levels seen mid-week.
1-hour and 4-hour liquidations suggest an easing in selling pressure, which supported the bitcoin recovery from early losses.
At the time of writing, total liquidations over one hour stood at $2.62 million.
The markets will likely continue to keep an eye on liquidations, with any spike a test of support.
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.