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Crypto Market Daily Highlights – Fed Fueled Rally Takes ETH to $1,600
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It was a breakout Wednesday session for the crypto market, with the Fed rate hike and hopes of a slower pace of rate hikes delivering market support.
In this article:
Key Insights:
- It was a bullish Wednesday session for the crypto top ten, with Ethereum (ETH) leading a broad-based crypto breakout.
- The US Federal Reserve delivered the market boost, with bitcoin (BTC) striking a day high of $23,102 in response.
- Having fallen back to a low of $924 billion on Tuesday, $78 billion poured into the market to take the market cap to $1,035 billion.
It was a bullish Wednesday session for the crypto top ten. Bitcoin (BTC) visited $23,000 for the first time since Friday, with Ethereum (ETH) bouncing back to $1,600.
Following the market reaction to Walmart’s (WMT) gloomy outlook on Tuesday, the global financial markets responded favorably to the Fed’s 75-basis point rate hike on Wednesday.
A rate hike in line with expectations and hopes of a slower pace of rate hikes delivered the market boost.
The crypto market tracked the NASDAQ 100 through the US session before extending gains post the US-market close. Investors seemed undeterred by the Fed’s commitment to bring inflation to target at any cost.
On Wednesday, the NASDAQ 100 surged by 4.06%. At the time of writing, the NASDAQ 100 Mini was down 34.5 points.
The Total Crypto Market Cap Gets Fed-Fueled $78 Billion Boost
On Wednesday, the crypto market came under early pressure before enjoying a breakout session.
The total crypto market cap fell to an early low of $945 billion before surging to a high of $1,040 billion.
Market reaction to the Fed policy decision and Fed Chair Powell’s comments was evident, with the market cap surging by $38 billion in the hour following the decision.
Barring a crypto meltdown, the Wednesday jump all but assures an end to a three-month losing streak. For July, the total market cap is currently up $170 billion.
The Crypto Market Movers and Shakers from the Top Ten and Beyond
ETH surged by 12.88% to lead the top ten, with SOL (+10.98%) and ADA (+9.19%) close behind.
BNB (+8.86%), BTC (+7.68%), DOGE (+7.57%), and XRP (+6.28%) also made solid gains.
From the CoinMarketCap top 100, it was a rare bullish session, with only stablecoins seeing modest declines.
Lido DAO (LDO) led the way, surging by 33.00%. Ethereum Classic (ETC) and Synthetix (SNX), and Uniswap (UNI) weren’t far behind. ETC jumped by 30.91%, with SNX and Uni up by 25.90% and 20.57%, respectively.
Total Crypto Liquidations Continued Upward Trend Over 24-Hours
On Thursday, 24-hour liquidations increased, reflecting a choppy start to the Wednesday session. Market reaction to the Fed policy decision and Powell’s comments led to improving market conditions, evident in the one-hour and four-hour liquidation figures.
This morning, 24-hour liquidations stood at $317 million, up from $207 million on Wednesday. While higher, liquidation over the last 12 hours was $265 million.
Liquidated traders increased over the last 24 hours. At the time of writing, liquidated traders stood at 78,656 versus 73,706 on Wednesday morning.
However, one-hour and four-hour liquidations painted a better picture, reflecting the Fed-fueled market rally.
According to Coinglass, four-hour liquidations stood at $36.06 million, up from $24.01 million on Wednesday. One-hour liquidations stood at $2.96 million, down from $4.41 million. (See hourly crypto market cap chart below).
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About the Author
Bob Masonauthor
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.
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