ADA and MATIC led the top ten rebound
Key insights:
- It was a bullish Tuesday session for the crypto top ten, with MATIC and ADA leading the recovery.
- Silvergate Bank news and chatter from Capitol Hill delivered a bullish Tuesday session.
- The crypto market cap jumped by $21.99 billion to end the day at $982.66 billion.
It was a bullish session for crypto top ten on Tuesday. ADA and MATIC led the recovery. BTC ended the day at $22,000 for the first time in six sessions.
US economic indicators tested investor sentiment in the afternoon session. In January, the US annual inflation rate fell from 6.5% to 6.4% against an estimated 6.2%. The hotter than expected headline number led the broader crypto market to an extended low.
However, the crypto news wires provided much needed support. News of Citadel Securities backing Silvergate Bank provided market support. According to an SEC filing on Tuesday, the hedge fund has a 5.5% stake in the crypto-linked bank.
Earlier this month, news broke of the US Department of Justice launching an investigation into Silvergate Bank for its connections with FTX and Alameda Research.
News from Capitol Hill likely contributed to the bullish session. On Tuesday, the Senate Banking Committee held a hearing, Crypto Crash: Why Financial System Safeguards are Needed for Digital Assets. Questions about Gary Gensler and the SEC’s regulation in enforcement and lack of SEC guidance to crypto firms highlighted Gensler and the SEC’s mistakes.
There were also calls for Gensler to testify sooner rather than later, with lawmakers noting Gensler’s appearances on morning talk shows.
The day ahead
Investors should continue to monitor the crypto news wires for FTX, Genesis and Silvergate Bank updates. However, SEC activity will remain the focal point.
In the afternoon session, the NASDAQ Composite Index will also weigh in as markets react to US retail sales figures for January. A third straight monthly decline in retail sales could revive recession fears. This morning the NASDAQ mini was down 18.5 points. On Tuesday, the NASDAQ Composite Index rose by 0.57%.
Crypto market bounces back as dip buyers return
It was a choppy Tuesday session. After a range-bound morning, the crypto market fell to an early afternoon low of $949.74 billion. However, after finding support in the afternoon, the crypto market capitalization rose to a high of $990.23 billion in the late afternoon before falling back.
Despite the late pullback, the crypto market cap ended the session at $982.66 billion, marking a gain of $21.99 billion for the day.
Crypto Market Movers and Shakers from the Top Ten and Beyond
It was a bullish session for crypto top ten.
ADA and MATIC rose 7.80% and 6.02% respectively to lead the way.
ETH (+3.34%) and XRP (+3.13%) also found strong support, while BNB (+0.61%), BTC (+1.95%) and DOGE (+1.71%) followed in front of.
From the CoinMarketCap top 100, it was a mixed session.
SingularityNET (AGIX) surged 21.59% to lead the way, with immutableX (IMX) and render token (RNDR) rising 14.73% and 14.68% respectively.
However, binaryX (BNX) rallied 14.99%, with maker (MKR) and casper (CSPR) falling 3.85% and 1.14% respectively.
24-hour liquidations make it easier to get back into the crypto market
Within 24 hours, crypto liquidations returned to below normal levels. Short positions had a higher proportion of liquidations, accounting for 71.37% of total liquidations. At the time of writing, 24-hour liquidations stood at $79.35 million, down from $114.37 million on Tuesday morning.
Liquidated traders in the last 24 hours were also lower. At the time of writing, liquidated traders stood at 25,938 against 50,475 on Tuesday morning. Crypto liquidations were higher over 12, while lower over four hours and one hour.
According to Coinglass, 12-hour liquidations stood at $69.48 million, compared to $37.02 million on Tuesday. However, four-hour liquidations were down from $10.05 million to $3.08 million, with one-hour liquidations falling from $8.16 million to $0.918 million.
The chart below shows market conditions throughout the session.
