Crypto Market Daily Highlights – ETH and BTC Fall as FED Fear Grows

Key Insights:

• It is a mixed Thursday session for the crypto top ten, with bitcoin (BTC) and Ethereum (ETH) leading the top ten into the red.
• A bearish second half of the day left the crypto market on the defensive, with the pullback coming despite the NASDAQ 100 gaining 0.41%.
• The mixed session has the total crypto market cap resuming the downward trend, with the market cap falling by $6.5 billion.

It is a mixed Thursday session for the crypto top ten. Bitcoin (BTC) fails to revisit the $24,000 handle for the fourth consecutive session, languishing at sub-$23,000. Ethereum (ETH) also struggled, while SOL steadied after the Solana wallet heist.

US recessionary fears reignited, with US labor market numbers disappointing. In the week ending July 29, initial jobless claims fell by 260k, up from the previous week’s 254k. The figures suggested weakening labor market conditions ahead of the July nonfarm payrolls.

The jobless claims 4-week average climbed from 248.75k to 254.75k. The 4-week average last sat at sub-200k in the week ending May 13. The disappointing numbers provided some much-needed Pound relief.

The weak numbers preceded today’s nonfarm payroll and wage growth figures that will likely dictate the Fed’s policy move in September. While solid labor market numbers will ease fears of a recession, they will swing the pendulum in favor of a 75-basis point rate hike, crypto negative.

As the broader crypto market struggles, the NASDAQ 100 avoided the red, rising by a modest 0.41%. Despite the crypto market divergence from the NASDAQ 100, the correlation remains firm.

The Total Crypto Market Cap Resumes Downward Trend

On Thursday, the total crypto market cap rose to an early high of $1,062 billion before sliding to a day low of $1,022 billion. However, finding late support, the market cap has returned to $1,032 billion to limit the downside.

A fourth daily loss in five sessions leaves the crypto market cap down $28 billion for August.

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

It is a mixed Thursday session for the crypto top ten.

BNB is up 4.16% to lead the way, with DOGE (+0.65%) also bucking the top ten trend.

However, BTC and ETH lead the way down, with losses of 1.39% and 1.64%, respectively.

ADA (-0.40%), SOL (-0.23%), and XRP (-0.31%) are also in the red.

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

Flow (FLOW) leads the way, surging by 38%, with Trust Wallet Token (TWT) and Chiliz (CHZ) among the front runners.

However, Wednesday’s front runners hit reverse to lead the way down. Lido DAO (LDO) and Optimism (OP) are down 10.4% and 9.3%, respectively, with Ethereum Classic (ETC) also struggling.

Total Crypto Liquidations Show Steadying Market Conditions

24-hour liquidations are rising ahead of the Friday session, reflecting the mixed Thursday session. A rise in 24-hour liquidations coincided with the crypto market resuming its downward trend.

At the time of writing, 24-hour liquidations stood at $136 million, up from $120 million on Thursday morning.

Liquidated traders increased over the last 24 hours. At the time of writing, liquidated traders stood at 50,882 versus 43,241 on Thursday morning.

However, one-hour and four-hour liquidations signaled steadying market conditions.

According to Coinglass, four-hour liquidations stood at $11.61 million versus $13.04 million on Thursday morning. One-hour liquidations are down from $3.88 million to $0.453 million (see hourly crypto market cap chart below).

Daily News Highlights

• Starbucks (SBUX) announced plans to unveil a Web3 rewards program in September.
• The US Senate introduced a bill giving the crypto regulatory powers to the CFTC
• Coinbase (COIN) shares surged on news of a deal with Blackrock (BLK).
• Crypto.com announced a new Kpop venture with Fantagio.