Crypto Market Daily Highlights – US Economic Woes Send ETH toward $2,000

Key Insights:

• It is another bullish session for the crypto top ten, with Solana (SOL) and Ethereum (ETH) leading the way.
• US GDP numbers for the second quarter reined in expectations of an aggressive Fed rate path to normalization, delivering market support.
• In response to the US economic contraction, the market cap fell to a day low of $1,017 billion before jumping to a day high of $1,092 billion.

It is a bullish Thursday session for the crypto top ten. Bitcoin (BTC) revisited $24,000 for the first time since June 20, with Ethereum (ETH) and Solana (SOL) leading the way.

Following the market-friendly Fed rate hike on Wednesday, US economic indicators drew interest on Thursday.

In the second quarter, the US economy contracted by 0.9% versus a forecasted 0.5% expansion. The economy contracted by 1.6% in the previous quarter.

While negative for riskier assets, the contraction reined in bets of another 75-basis point rate hike in September, delivering support to the global equity markets and the crypto market.

The crypto market tracked the NASDAQ 100 through the US session, recovering from a dip in response to the GDP numbers.

On Thursday, the NASDAQ 100 followed Wednesday’s 4.06% rally with a 1.08% gain.

The Total Crypto Market Cap Jumps on FED Bets

On Thursday, the crypto market found early support before sliding to a day low of $1,017 billion. Investor reaction to the US economic contraction weighed on the crypto market before a rebound to a day high of $1,092 billion.

The upside came in response to a shift in sentiment towards Fed monetary policy. Another contraction eased bets of a 75-basis point rate hike in September to bring inflation back to target.

With another $43 billion flowing into the crypto market, an end to a three-month losing streak looks more assured. For July, the total market cap is up $211 billion.

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

With two hours remaining for the Thursday session, SOL was up by 7.73% to lead the way, with ETH (+6.18%) close behind.

BNB (+2.06%), BTC (+3.97%), DOGE (+3.62%), and XRP (+3.61%) also found strong support, while ADA (+0.78%) trailed.

From the CoinMarketCap top 100, it was another bullish session, with stablecoins seeing modest losses for a second consecutive session.

Lido DAO (LDO), Ethereum Classic (ETC), Synthetix (SNX), and Uniswap (UNI) were among the front runners again.

ETC was up by 23.09%, with LDO (+16.70%), SNX (+10.48%), and UNI (+16.89%) close behind.

Total Crypto Liquidations Continued Upward Trend Over 24-Hours

On Thursday, 24-hour liquidations increased again, with the liquidation of short positions dominating as investors responded to the US GDP numbers and what it means from a Fed monetary policy perspective.

At the time of writing, 24-hour liquidations stood at $543 million, up from $317 million on Thursday morning.

Liquidated traders increased over the last 24 hours. At the time of writing, liquidated traders stood at 120,788 versus 78,656 on Thursday morning.

While four-hour liquidation figures were also elevated, one-hour liquidation numbers pointed to a steadying in market conditions.

According to Coinglass, four-hour liquidations stood at $96.94 million, up from $36.06 million on Thursday. One-hour liquidations stood at $3.46 million, up from $2.96 million. (See hourly crypto market cap chart below).

Daily News Highlights

• FTC hit Meta (META) with a court order to block the acquisition of a virtual reality app.
• The news hit the wires of Solana (SOL) planning to unveil a Manhattan retail store.
• In the UK, the Law Commission proposed changes to how property laws apply to cryptos.
• NFTs were back in the news, with Impostors preparing for its first beta.