Crypto Market Daily Highlights: MATIC and ETH Fin Dip Buyer Support

Key Insights:

• It was a bullish session for the crypto top ten on Sunday, with ETH and MATIC leading the pack.
• There were no crypto events or external market forces to influence, leaving dip buyers to end a five-day losing streak.
• The crypto market cap rose by $18.71 billion, ending the day at $1,035 billion.

It was a bullish session for the crypto top ten on Sunday. ETH and MATIC led the top ten, while XRP trailed. Despite the bullish session, BTC came up short of $24,000 for the second consecutive session.

There were no external market forces to influence investor sentiment on Sunday. The lack of material crypto news left dip buyers to provide much-needed crypto market support.

Further updates from the G20 had a muted impact on the broader crypto market. According to the G20 Summary and Outcome Document, the Bank for International Settlements (BIS), the Financial Stability Board (FSB), and the International Monetary Fund (IMF) will support the development of a global regulatory framework.

BIS will report on key findings and lessons of its CBDC projects in July 2023, with the IMF to deliver a report on the potential macro-financial implications of the widespread adoption of CBDCs in September 2023.

Additionally,

• The FSB is to finalize its recommendations on regulation, supervision, and oversight of global stablecoins and crypto-asset markets and activities by July 2023.
• BIS is to submit a report on analytical and conceptual issues and possible risk mitigation strategies related to crypto assets.
• The IMF and the FSB will jointly submit a synthesis paper integrating macroeconomic and regulatory perspectives of crypto assets by September 2023.

While the markets brushed aside the likely shift in the regulatory landscape, the prospect of a global regulatory framework could address the issue of regulation by enforcement. However, recommendations should support growth and innovation rather than stifle the digital asset space.

While regulation trumped calls for a crypto ban, the involvement of the IMF in establishing a global regulatory framework could be of concern. At the G20, IMF Managing Director suggested banning crypto should be an option.

The Day Ahead

In the afternoon session, US economic indicators, Fed chatter, and the NASDAQ Composite Index will influence investor sentiment. We expect further market reaction to the latest US inflation numbers and the prospects of a more aggressive Fed interest rate path to bring inflation to target.

However, investors should monitor the crypto news wires for regulatory activity and US lawmaker chatter. Binance and FTX updates need consideration together with news from the ongoing SEC v Ripple case.

Crypto Market Ends a Five-Day Losing Streak

It was a bullish Sunday session. A mixed start to the day saw the crypto market cap fall to an early morning low of $1,011 billion before finding support. The recovery saw the crypto market cap rise to a late high of $1,042 billion before easing back.

Despite the late pullback, the crypto market cap ended the day at $1,035 billion, marking an $18.71 billion (+1.84%) gain on Sunday. However, five sessions in the red from seven left the crypto market cap down $29.21 billion for the week.

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

It is a bullish session for the crypto top ten.

MATIC and ETH saw gains of 2.56% and 2.94%, respectively, to lead the way.

ADA (+1.93%), BNB (+2.05%), BTC (+1.65%), and DOGE (+1.36%) also found support, while XRP (+0.02%) trailed.

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

ssv.network (SSV) and klaytn (KLAY) rallied by 12.12% and 11.68%, respectively, to lead the way, with optimism (OP) gaining 9.28%.

However, binaryX (Old) (BNX) slid by 9.08%, with iota (MIOTA) and flare (FLR) seeing losses of 1.59% and 1.54%, respectively.

24-Hour Liquidations Slide on Dip Buyer Support

Over 24 hours, crypto liquidations fell further below-normal levels. Short positions had a higher share of liquidations, accounting for 78.11% of total crypto liquidations. This morning, 24-hour liquidations stood at $44.16 million, down from $71.45 million on Sunday morning (UTC).

Liquidated traders over the last 24 hours were also lower. This morning, liquidated traders stood at 14,509 versus 38,441 on Sunday morning. Crypto liquidations were lower over 12 and four hours and over one hour.

According to Coinglass, 12-hour liquidations stood at $35.44 million, down from $59.58 million on Sunday morning, with four-hour liquidations falling from $33.45 million to $15.69 million. One-hour liquidations declined from $2.98 million to $1.54 million.

The chart below shows market conditions throughout the session.