- Crypto market conditions calmed on Tuesday, with the broader market ending extended losing streaks.
- Ethereum (ETH) bucked the trend, falling for an eighth consecutive day, with bitcoin (BTC) also seeing red.
- The choppy session saw the total crypto market cap fall by $69 billion to a new current-year low of $858.7bn before late support kicked in.
The eighth day in the red saw bitcoin fall to a new current-year low of $20,838 before a partial recovery to $22,000. Bitcoin last stood at sub-$21,000 in December 2020.
Dip buyers delivered much-needed support ahead of the Fed’s monetary policy decision on Wednesday, which has weighed on the crypto market.
Crypto Market Cap Slides to sub-$900 Billion
Following Monday’s $130.6 billion wipeout, the total crypto market cap fell by just $3.6 billion on Tuesday.
Significantly, however, the market cap fell to a new current-year low of $858.6 billion before returning to $900 billion. Tuesday’s decline marked the eighth consecutive daily fall.
For June alone, the total crypto market cap is currently down $379 billion, following a $380 billion tumble in May and a $375 billion slump in April.
While the crypto market found support on Tuesday, downside risks remain as the market looks ahead to the Fed monetary policy decision on Wednesday.
The markets have priced in a 50 basis point rate hike. A hike in line with expectations would leave investors to focus on the Fed’s inflation, GDP, and interest rate projections.
Investor fear of a more aggressive rate path trajectory has hit riskier assets. An upward revision to the March projections will likely further test the appetite for riskier assets.
Other market considerations include plans to roll out more stringent regulatory measures and the stability of stablecoins.
From the CoinMarketCap top 100, Monero (XMR) joined TRX in the deep red, with a loss of 10.83%.
Total Crypto Liquidations Eased but Remained Elevated
Following Tuesday’s spike, total liquidations eased going into the Wednesday session.
According to Coinglass, 24-hour liquidations stood at $578 million, down from $1,070 million levels on the day prior. While down from Tuesday levels, however, 24-hour liquidation levels remained elevated.
One-hour liquidations pointed to a steadying in market cap conditions, with one-hour liquidations at $7.7 million.
Crypto Daily News Highlights
- Bank of England Governor Andrew Bailey took another swipe at the crypto market.
- Crypto investors prep for the Fed monetary policy decision and projections.
- Tron (TRX) took a hit in response to algorithmic stablecoin USDD losing its dollar peg.
- Ripple general counsel Stuart Alderoty took aim at the SEC over a muddied regulatory environment.
- BlockFi was fined $943,000 for failing to register securities in the State of Iowa.
- While the crypto winter takes its toll on crypto platforms, Ripple Labs, Binance, and Tron announced upbeat plans.
- CEO and co-founder of Terraform Labs Do Kwon denied cashing out $2.7 billion.