Crypto Market Daily Highlights – June 8 – BTC, ADA, BNB, LINK, and XRP

Key Insights:

• A bitcoin (BTC) slide back to sub-$30,000 before a partial recovery reflected investor sentiment as crypto headwinds linger.
• Inflation jitters returned, hitting the US equity markets, which spilled over to the crypto markets mid-week
• From the crypto top 10, Cardano (ADA) bucked the market trend, with sentiment towards the upcoming Vasil hard fork delivering support.

It was a mixed Wednesday session for the crypto market. Network news updates supported several cryptos, while the broader market suffered at the hands of inflation jitters.

After a promising start to the week, bitcoin (BTC) saw red for a second consecutive day. Significantly, bitcoin visited sub-$30,000 for eight days in a row before a partial recovery to $30,000 levels.

Once more, bitcoin correlation with the NASDAQ 100 was evident throughout the session. The NASDAQ 100 fell by 0.73%, with a spike in oil prices weighing on risk appetite.

From the chart below, bitcoin and the NASDAQ 100’s inverse correlation with WTI crude oil prices was also apparent in recent sessions. The markets are taking crude oil prices as a gauge for inflation.

Crypto Market Cap Avoided sub-$1,800bn Despite the Bearish Session

On Wednesday, the total crypto market cap fell to a day low of $1,202 billion before steadying. Ending the day at $1,217 billion, another $24 billion came off, following a $14 billion decline on Tuesday. The two consecutive days of losses left the total market cap down for the current week.

On a trend basis, a bottoming out remains evident despite the pullback. However, a hold above the May 12 current-year low of $1,082 billion remains pivotal.

On Wednesday, ADA rallied by 4.40% to lead the top ten majors. Outside of the top ten, Chainlink (LINK) slipped by 0.22% to consolidate Tuesday’s 9% breakout on LINK staking news.

The rest of the top ten saw red.

BTC fell by 3.0%, with BNB (-0.59%), DOGE (-1.36%), ETH (-1.17%), SOL (-1.29%), and XRP (-1.78%) also struggling.

While it was a bearish session for the broader market, the Loomis and Gillibrand bill could end the debate over whether altcoins are commodities or securities. The Bill asserts that “most digital assets are more like commodities than securities, meaning that cryptos would also fall under the purview of the CFTC and not the SEC.

Total Crypto Liquidations Indicate Subdued Selling Pressure

Over 24 hours, total liquidations eased back from Wednesday levels but remained elevated. According to Coinglass, 24-hour liquidations stood at $158.58 million, down from $301.83 million at the same time yesterday. However, liquidations were up from sub-$100 million levels seen over the weekend.

1-hour liquidations suggested improving market conditions

At the time of writing, total liquidations over one hour stood at $2.05 million.

Crypto Daily News Highlights

• A bipartisan bill backed by Republican Cynthia Lummis and Democrat Kirsten Gillibrand would make the CFTC the crypto watchdog.
• Citadel Securities builds a crypto trading marketplace.
• Solana invests $100 million in web3 starts-ups, focusing on gaming.
• Updates from the June 7 court-scheduled SEC-Ripple conference favored Ripple Lab.
• Ethereum passed its next milestone in migrating to a proof-of-stake protocol with the successful merge of the Ropsten testnet.
• The New York Department of Financial Services (NYDFS) published guidelines on the issuance of stablecoin.