The NASDAQ Sends the Market South


Key ideas:

  • It was a bearish Monday session for the top ten crypto, with SOL leading the way.
  • Fed fear gripped global financial markets, sending the NASDAQ index and the broader crypto market into the red.
  • The crypto market capitalization 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. SUN led the way down. BTC ended the day below $23,000 for the first time in six sessions.

The FTX Court updates took a backseat on Monday. After briefly delinking from the NASDAQ index, fear of the Fed gripped global financial markets, sending the NASDAQ index and the cryptocurrency market into the red.

As markets bet on a 25 basis point Fed rate hike tomorrow, uncertainty over Fed Chairman Powell’s forward-looking guidance weighed. US inflation may have eased, but labor market conditions remain difficult.

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

On Monday, the NASDAQ index fell 1.96%. As Fed fears gripped them, tech stocks were under pressure ahead of a big week of gains, with Apple (AAPL), (AMZN), and Alphabet Inc. (Google) posting results this week. A hawkish Fed and bleak outlook would be bearish. This morning, the NASDAQ mini is up 26 points.

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

Total Market Cap – NASDAQ – 310123 Daily Chart

Crypto Market Reversals as Fed Fear Sinks Riskier Assets

It was a bearish Monday session. A bullish start to the day saw the crypto market capitalization rally as high as $1.037 billion in the first hour before pulling back. The reversal caused the crypto market capitalization to slide to a late low of $974.88 billion.

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

The crypto market capitalization rose $234 billion in January despite falling on Monday.

Total Market Capitalization 310123 Daily Chart

The top ten crypto market movers and shakers and beyond

It was a bearish session for the top ten crypto.

SUN slipped 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%) experienced relatively modest losses.

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

dydX (DYDX) and hyphen (CRASH) defied the general market trend, increasing by 6.62% and 4.28%, respectively.

However, the flow (FLOW) and bitDAO (A LITTLE) slid 11.51% and 11.84%, respectively, with axie infinity (AXIS) ending the day with a loss of 10.97%.

24-hour sell-offs rise on Fed fears and long sell-offs

Over 24 hours, crypto liquidations returned to normal levels as investors tracked the NASDAQ index in the red. Long positions had the largest share of liquidations, representing 88.83% of total liquidations. At the time of writing, 24-hour settlements stood at $161.03 million, up from $43.53 million on Monday morning.

Traders liquidated in the last 24 hours were also higher. At the time of writing, traders liquidated stood at 53,503, up from 21,265 on Monday morning. Crypto settlements were highest for 12 hours, while lowest for four hours and one hour.

Total Crypto Settlements 310123

According to purse, 12-hour liquidations totaled $94.13 million, up from $43.53 million on Monday. However, four-hour sales dropped from $12.83 million to $9.93 million, and one-hour sales dropped from $2.66 million to $1.38 million.

The following chart shows the market conditions throughout the session.

Total Market Cap Hourly Chart 310123