Crypto Market Daily Highlights – ETH Leads the Crypto Top Ten

Key Insights:

  • It was another bullish session for the crypto top ten, with Ethereum (ETH) leading the way.
  • The upside came despite a spike in US wholesale inflation, with FOMC member chatter of a 75-basis point rate hike easing fears of a 100-basis point hike later this month.
  • The total crypto market cap rose by $23 billion to log the second increase of the week.

It was a bullish Thursday session for the crypto top ten. Bitcoin (BTC) consolidated the Wednesday rebound, while ETH bounced back to revisit $1,200.

A spike in US wholesale inflation and weak jobless claims figures tested support for riskier assets.

The US wholesale annual rate of inflation accelerated from 10.9% to 11.3% in June, beating a forecasted 10.7%. In the week ending July 8, jobless claims rose from 235k to 244k, adding to the bearish sentiment.

Later in the US session, however, riskier assets found support from Fed Governor Christopher Waller, who supported a 75-basis point rate hike in July. The latest consumer price and nonfarm payroll figures have brought a 100-basis point rate hike onto the table.

Market reaction to Waller’s comments was evident, with the crypto market rising in response.

The NASDAQ 100 avoided a fourth consecutive day in the red, eking out a 0.03% gain ahead of US retail sales figures due later today.

crypto - NASDAQ
Total Market Cap – NASDAQ – 150722 5 Min Chart

At the time of writing, the NASDAQ 100 Mini was up 61 points, with the retail sales figures likely the final piece of the jigsaw for the Fed. Solid numbers would support the more hawkish rate hike bets. Amidst increased sensitivity to FOMC member chatter, Fed commentary will also draw plenty of interest.

The Total Crypto Market Cap Returns to $900bn

A mixed Thursday session saw the crypto market cap fall to a day low of $855 billion before finding support. Investor reaction to the US wholesale inflation and jobless claims figures weighed before a jump to a high of $914 billion.

While a late pullback limited the upside, investors poured a further $23 billion back into the market to take the crypto market cap up $37 billion for July.

Crypto market cap
Total Market Cap 150722 Daily Chart

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

ETH rallied by 7.04% to lead the way, with BNB (+3.47%) and SOL (+6.31%) finding strong support.

ADA (+0.68%), BTC (+1.71%), DOGE (+0.87%), and XRP (+2.93%) trailed the front runners.

From the CoinMarketCap top 100, Uniswap (UNI) and Polygon (MATIC) were among the front runners, with gains of 14.70% and 10.94%, respectively.

At the other end of the table, TerraClassicUSD (USTC) and Decred (DCR) fell by 11.25% and 1.22%, respectively, to buck the broader market trend.

Total Crypto Liquidations Slip Back in Bullish Session

On Thursday, 24-hour liquidations eased back as the crypto market brushed aside wholesale inflation numbers from the US.

This morning, 24-hour liquidations stood at $180 million, down from $230 million on Thursday.

Liquidated traders over the last 24 hours declined to also reflect improving market conditions. At the time of writing, liquidated traders stood at 51,568 versus 72,955 on Thursday.

One-hour and four-hour liquidations showed improving market conditions at the turn of the day.

According to Coinglass, one-hour liquidations stood at $2.41 million, down from $7.12 million on Thursday. Four-hour liquidations stood at $9.20 million, down from $13.28 million on Thursday.

Crypto liquidations
Total Crypto Liquidations 150722

Daily News Highlights

  • CEL Token price plunged 50% in response to Celsius filing for bankruptcy.
  • Walt Disney (DIS) selected Polygon (MATIC) to join the 2022 Disney Accelerator.
  • The crypto winter hit Open Sea, which announced a 20% reduction in headcount
  • Uniswap surged in response to Robinhood (HOOD) listing.
  • The UK’s Financial Conduct Authority (FCA) called for global crypto rules to keep the markets clean.

Top 3 Trending Coins: Outperforming CVX & SAND Eye Key Resistance, PAXG Hit by Sliding Gold Price

Key Points

  • Cryptocurrency markets are in consolidation mode ahead of the release of the minutes from the Fed’s June meeting.
  • CVX, the best performing top 100 cryptos of the last day, is eyeing a test of its 50DMA at $6.70
  • SAND, another strong performer, is eyeing a rally to June highs above $1.50.  

Market Update

Cryptocurrency markets are in consolidation mode ahead of the release of the minutes from the Fed’s June meeting, when the bank raised interest rates by 75 bps, marking the largest rate hike in 28 years. The Fed is in a rush to raise interest rates above the so-called “neutral” rate (around 2.5%) in order to cool the economy, with inflation remaining well above the Fed’s 2.0% target.

Total cryptocurrency market capitalization was last around $890 billion, little changed on the day though about 4.0% higher on the week. Bitcoin was last also trading broadly flat on the day in the $20,200 area, capped for now by its 21-Day Moving Average just under $20,300. Ethereum, meanwhile, was last changing hands just under $1,150 and just to the north of its 21DMA at $1,120.

The Fed minutes will likely signal the likelihood of another 75 bps rate hike later this month, a prospect markets are already pricing in. Indeed, a build-up of expectations for the US economy (and other major economies) to enter recession in the near future has been the main theme driving markets in recent weeks.

This hasn’t necessarily been a bad thing for crypto given that as recession bets rise, US bond yields have pulled lower and Fed tightening bets have been wound down. The upcoming US ISM Services PMI report at 1400GMT will be viewed in that context. Signs of weakness might actually boost crypto if it results in heightened recession bets and a pullback in Fed tightening bets.

Below is a list of Wednesday’s top three trending coins.

Convex Finance (CVX)

CVX, the utility and governance protocol of the Decentralised Finance (DeFi) protocol Convex Finance, is the best performing cryptocurrency in the top 100 (by market cap) over the past 24 hours, according to CoinMarketCap. CVX/USD is up around 21% in the last 24 hours and 45% since the start of the week.

The recent bullish breakout has seen the pair surge to its highest levels in nearly one month and leave its 21DMA at $4.31 per token for dead. CVX/USD came within a whisker of testing its 50DMA at $6.70 on Tuesday and has since pulled back to the $5.70 area, where it continues to trade with healthy weekly gains.

Does the recent rebound which has taken more than 80% higher versus its June lows around $3.10 mark the start of a prolonged rebound?

It remains too soon to say. Even after the recent rebound, the DeFi protocol token still trades about 86% lower versus its start of April highs. Much of the drop in the last three months came in wake of the collapse of Terra’s algorithmic stablecoin UST, which sent a chill across the DeFi space.

If CVX can break above its 50DMA, then it perhaps could be in for a run to test a downtrend near $8.0 per token. A break above that would open the door for a run at $10.

CVX/USD
CVX/USD eyes rally above 50DMA. Source: FX Empire

The Sandbox (SAND)

SAND, the native token to The Sandbox’s metaverse, is the second-best performing cryptocurrency in the top 100 by market cap over the last 24 hours, with gains of around 14% according to CoinMarketCap. SAND/USD was last changing hands around $1.25 oer token, below its late June highs in the $1.35 area, but convincingly above its 50DMA for the first time since early April.

If the pair can hold above its 50DMA, some technicians might take this as a signal of a shift in SAND’s near-term momentum. If that is the case and SAND/USD does push beyond its late-June highs soon, the door is open for a test of the late-May/early-June highs just above $1.50.

Any dips back below $1.10 may well be bought into given support in the form of the pair’s 21DMA at $1.04 and an uptrend that has been offering support since mid-June.

SAND/USD
SAND/USD eyes rally back to June highs above $1.50. Source: FX Empire

PAX Gold (PAXG)

Aside from the highly volatile TerraUST, PAX Gold is the second-worst performing cryptocurrency in the top 100 by market cap on Wednesday, nursing losses of around 2.0% over the last 24 hours, as per CoinMarketCap. PAX Gold is a gold-backed cryptocurrency, with PAX holding exactly one troy ounce worth of gold per PAXG token it issues. PAX has currently issued roughly $590 million PAXG tokens.

PAXG was last trading just below $1760 per token, with its underperformance a reflection of downside in the price of its underlying asset, physical gold. Spot gold prices have been under heavy selling pressure over the past few days as the US dollar strengthens across the board, making USD-denominated gold more expensive for international buyers.

Spot gold was last trading on physical markets also below $1760 and down about 3.0% or over $50 since the start of the week. Global recession fears have been the big driver of USD strength recently and seem to have inadvertently hit the safe-haven precious metal.

Inflation expectations have also fallen recently as commodity prices (like energy and industrial metals) have pulled lower, dimming the appeal of assets seen as a hedge against inflation (like gold). But some have questioned how much further gold has to fall. If the US and global economy are already in a recession/or about to be, then that might support gold.

That is especially the case if a recession helps bring inflation in the US under control, thus easing the pressure on the Fed to be quite so aggressive with its rate hikes. The recent drop in US bond yields and money market Fed rate hike bets reflects markets are already beginning to think this way.

PAXG is eyeing a test of its November 2021 lows in the $1740s. Dip-buyers may be enticed. But should this support fail to hold up, then a drop towards September/October 2021 lows under $1700 is on the cards. Certainly, the technicals are not looking great, with PAXG’s 21 and 50DMAs falling and the cryptocurrency in a downtrend since the start of June.

Top 5 Gold Price Linked Cryptocurrencies to Watch in 2022

Key Points 

  • The popularity of gold price-linked cryptocurrencies has grown exponentially in the last two years.  
  • Amid the ongoing crypto bear market, gold-backed cryptocurrencies offer a potential safe-haven superior to stablecoins.  
  • PAXG and XAUT are the largest gold-backed cryptocurrencies by market cap, while PMGT, GLC and DGX have potential.  

Over the last two years, gold-backed cryptocurrencies have exploded into popularity. As of Thursday, cryptocurrencies that are backed by gold deposits have a market capitalization of a little more than $1 billion, up from virtually nothing this time two years ago. However, given that the market cap of all the gold in the world is currently around $11.6 trillion, gold-backed digital currencies have a long way to go before they can be considered mainstream.  

But with the broader cryptocurrency market having experienced a ferocious bear market so far in 2022, the outlook for continued growth in the market cap of gold-backed tokens looks promising. One way that crypto investors traditionally like to hedge their risk but without taking money entirely out of the space is to buy stablecoins like Tether’s USDT and Circle Internet Financials’ USDC.  

But with inflation in the US running at four-decade highs and prices rising 1.0% in the month of May alone, according to US CPI data released last Friday, some investors might be drawn to gold-backed cryptocurrencies. Gold is often viewed as a hedge against inflation and, while many crypto enthusiasts also see Bitcoin in that lens, gold is undeniably less sensitive to risk appetite.  

Here is a list of the top five gold-backed cryptocurrencies to watch in 2022… 

Pax Gold (PAXG) 

Pax Gold is an ERC-20 token that runs on the Ethereum blockchain, with one token corresponding to exactly one troy ounce of gold. PAXG was launched back in September 2019 by Paxos Standard, with tokens backed by London Good Delivery gold bars that are stored in vaults operated by Brink’s, a London Bullion Market Association (LBMA) approved storage company. PAXG is currently the only gold-backed cryptocurrency that can be directly redeemed for LBMA-accredited gold bullion bars.  

The current circulating supply of PAXG tokens is just under 335,000, according to CoinMarketCap data, meaning PAXG’s total market cap is around $615 billion, according to gold’s spot market price on Thursday of close to $1830 per troy ounce. A benefit of owning PAXG over physical gold is that owners can generate yield on their holdings by utilizing one of the many Decentralised Finance (DeFi) applications running on the Ethereum network. A downside of running on the Ethereum network is that, in order to conduct transactions, users need to hold ETH in order to pay gas fees.  

Tether Gold (XAUT)

With Tether having established itself as the leading stablecoin issuer over the last few years, with the market cap of its fully collateralized USD-pegged USDT currently around $70 billion, it makes sense that Tether decided to move into the gold-backed cryptocurrency space in 2020. Like Pax Gold, one XAUT token represents one troy ounce of physical gold on a London Good Delivery bar, but unlike PAXG, the gold that backs XAUT is stored in Switzerland.  

One drawback of owning XAUT is that investors are required to pay a transaction fee of 0.25% a pop, reducing its viability as a form of currency. As of Thursday, the circulating supply of XAUT is around 246,500, according to CoinMarketCap data, which gives the gold-backed cryptocurrency a market cap of around $450 million.  

Perth Mint Gold Token (PMGT) 

Like Pax Gold and Tether Gold, each Perth Mint Gold Token represents one troy ounce of gold. The gold backing PMGT is stored at The Perth mint and, like PAXG, tokens can be redeemed directly for gold bullion. The bullion that backs PGMT is Australian government guaranteed. One benefit of holding PMGT over other gold-backed cryptocurrencies is that there are no transaction fees and, like other tokens, there are no fees associated with the storage/management of the gold that backs the token.  

At present, there are only about 1,150 PGMT tokens in circulation, according to CoinMarketCap data, corresponding to a market cap of around $2.14 million. One of the factors holding PMGT back from greater adoption is likely the fact that it is only available to buy on small Australian crypto exchange Independent Reserve, although talks are allegedly in the works for PMGT to be listed on other crypto exchanges. When this does happen, token issuance should rise.  

Gold Coin (GLC) 

Like Pax Gold, Gold Coin is an ERC-20 token that runs on the Ethereum network. Unlike Pax Gold and the other above-mentioned gold-backed cryptocurrencies, one GLC token does not correspond to one troy ounce of gold. In fact, one GLC corresponds to one-thousandth of a troy ounce of gold. GLC currently has a small market cap of around $880,000, which corresponds to about 43.7 million tokens in supply.  

The largest crypto exchange where the coin can be purchased is Crypto.com. As with PAXG, one of the drawbacks with GLC running on the Ethereum network is that users must hold ETH to pay for network gas fees.  

Digix Gold (DGX)  

Singapore-based DigixGlobal’s Digix Gold token is fully collateralized by physical gold bullion bars and, like with most other gold-backed cryptocurrencies, one DGX token corresponds to one troy ounce of gold. DigixGlobal stores its gold in Singapore and Canada. One drawback of the token is that investors must pay a 1% fee per transaction.  

DGX tokens had a market cap of around $800,000 as of Thursday. But DigixGlobal’s future is uncertain. The company suspended operations back in January in order to focus on reviewing the license requirements under the Singapore Payment Services Act and announced that it would not be taking any more transactions.

Crypto Market Daily Highlights – June 13 – DOGE, ETH, and BTC Slump

Key Insights:

  • Cryptocurrency market conditions deteriorated further at the start of the week, with the broader market seeing red for a seventh consecutive day.
  • While market apprehension toward Fed monetary policy continued to weigh, news of DeFi lender Celsius suspending withdrawals added to the bearish mood.
  • The total crypto market cap tumbled by $121 billion to sub-$1,000 billion for the first time since February 2021.

It was a bearish start to the week for the crypto market, with the broader market seeing red for a seventh consecutive day. According to CoinMarketCap, Theta Network (THETA) was the only altcoin in the top one hundred to avoid a loss, with a 6.41% gain.

Investor apprehension ahead of Wednesday’s Fed monetary policy decision and forward guidance continued to weigh on the crypto market.

Adding to the market angst, however, was news of DeFi lender Celsius suspending all withdrawals, swaps, and transfers. With the dust yet to settle from the collapse of Terra LUNA and TerraUSD, the prospect of another market event came at the wrong time.

The extended sell-off led bitcoin (BTC) to sub-$22,000 for the first time since December 2020.

Crypto Market Cap Slides to sub-$1,000 Billion Amidst Panic Selling

A particularly bearish Monday saw the total crypto market cap slide by $130.6 billion to end the day at sub-$1,000 billion.

The total crypto market cap last stood at sub-$1,000 billion in February 2021. By contrast, however, the crypto market was in a bull run in February 2021, culminating in a bitcoin November all-time high of $68,979.

Year-to-date, the total crypto market cap has fallen by $1,268 billion.

Crypto market cap slides to sub-$1,000 bn.

With regulators looking to expedite efforts to roll out more stringent policy measures, the news of Celsius suspending withdrawals will likely draw more government ire.

The latest news raises the risk of more collapses in the wake of TerraUSD Classic (USTC) and Terra LUNA.

From the top ten cryptos, ETH and BTC led the way down, with losses of 15.7% and 15.5%, respectively.

BNB (-12.6%), DOGE (-14.8%), and XRP (-9.1%) also saw heavy losses.

ADA and SOL fared better than most, falling by 5.3% and 6.6%, respectively.

From the CoinMarketCap top 100, Aave (AAVA), CurveDAO Token (CRV), NEO (NEO), NEXO (NEXO), THORChain (RUNE), and Zcash (ZEC) saw the heaviest losses.

Tracking gold spot (XAUUSD) into the red, PAX Gold (PAXG) failed to provide comfort, declining by 3.01%. On Monday, gold spot slid by 2.80% to end the day at $1,819.

Total Crypto Liquidations Remain Elevated

Following a rise over the weekend, total crypto liquidation spiked going into today’s session.

According to Coinglass, 24-hour liquidations stood at $1,070 million, well above any levels in recent weeks. Early in the Monday session, 24-hour liquidations had stood at $359.7 million,

One-hour liquidations pointed to a steadying in market cap conditions, with one-hour liquidations at $15.53 million.

Crypto liquidations sky rocket.
Total Crypto Liquidations 140622

Crypto Daily News Highlights

  • DeFi lender Celsius suspended withdrawals, swaps, and, transfers to add to the crypto market ire.
  • JPMorgan announced plans to tokenize US Treasuries to embed them into its crypto strategy.
  • US investors filed a lawsuit against Binance US for illegally selling TerraUSD and Terra LUNA.
  • Former Twitter CEO Jack Dorsey challenged Elon Musk to develop a DOGE-based Web69.
  • XRP investors await a court ruling that could decide the direction of the SEC case against Ripple Labs.
  • MicroStrategy (MSTR) share price tumbled by 25.18% on Monday, with Coinbase (COIN) sliding by 11.41%.