Crypto Market Daily Highlights: The NASDAQ Sends the Market South

Key Insights:

• It was a bearish Monday session for the crypto top ten, with SOL leading the way down.
• Fed fear gripped the global financial markets, sending the NASDAQ Index and the broader crypto market into the red.
• The crypto market cap slid by $39.94 billion to end the day at $991.23 billion.

It was a bearish session for the crypto top ten on Sunday. SOL led the way down. BTC ended the day at sub-$23,000 for the first time in six sessions.

FTX Court updates took a backseat on Monday. After briefly decoupling from the NASDAQ Index, Fed fear gripped the global financial markets, sending the NASDAQ Index and the crypto market into the red.

While the markets are betting on a 25-basis point Fed interest rate hike tomorrow, uncertainty over Fed Chair Powell’s forward guidance weighed. US inflation may have softened, but labor market conditions remain tight.

The US unemployment rate sits at 3.5%, well below the Fed’s 5% mandate, which gives the Fed the room to go higher for longer.

On Monday, the NASDAQ Index slid by 1.96%. While Fed fear gripped, tech stocks were under pressure ahead of a big earnings week, with Apple (AAPL), Amazon.com (AMZN), and Alphabet Inc. (GOOGL) releasing results this week. A hawkish Fed and gloomy outlooks would be bearish. This morning, the NASDAQ mini was up 26 points.

Today, US economic indicators and sentiment toward the Fed will continue to guide the NASDAQ and the broader crypto market. However, investors should monitor the crypto news wires for updates on FTX, Genesis, the SEC v Ripple case, and crypto events that could move the dial.

Crypto Market Hits Reverse as Fed Fear Sinks Riskier Assets

It was a bearish Monday session. A bullish start to the day saw the crypto market cap rise to a first-hour high of $1,037 billion before hitting reverse. The reversal saw the crypto market cap slide to a late low of $974.88 billion.

However, finding late support, the crypto market cap ended the day at $991.23 billion, marking a $39.94 billion loss for the day.

The crypto market cap is up $234 billion for January despite the Monday slide.

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

It was a bearish session for the crypto top ten.

SOL slid by 8.16% to lead the way, with ADA (-6.28%), ETH (-4.78%), and XRP (-4.80%) also struggling.

BNB (-3.18%), BTC (-3.86%), and DOGE (-1.78%) saw relatively modest losses.

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

dydX (DYDX) and dash (DASH) bucked the broader market trend, rising by 6.62% and 4.28%, respectively.

However, flow (FLOW) and bitDAO (BIT) slid by 11.51% and 11.84%, respectively, with axie infinity (AXS) ending the day with a 10.97% loss.

24-Hour Liquidations Spike on Fed Fear and Long Liquidations

Over 24 hours, crypto liquidations returned to normal levels as investors tracked the NASDAQ Index into the red. Long positions had the higher share of liquidations, accounting for 88.83% of total liquidations. At the time of writing, 24-hour liquidations stood at $161.03 million versus $43.53 million on Monday morning.

Liquidated traders over the last 24 hours were also higher. At the time of writing, liquidated traders stood at 53,503 versus 21,265 on Monday morning. Crypto liquidations were higher over 12 hours while lower over four hours and one hour.

According to Coinglass, 12-hour liquidations stood at $94.13 million, up from $43.53 million on Monday. However, four-hour liquidations fell from $12.83 million to $9.93 million, with one-hour liquidations down from $2.66 million to $1.38 million.

The chart below shows market conditions throughout the session.