Crypto Lender BlockFi Files For Bankruptcy

Key Insights

  • FTX contagion spreads but crypto traders do not panic.
  • At first glance, BlockFi has enough liquidity to ensure an orderly bankruptcy process. 
  • Crypto markets are under some pressure today, but there is no BlockFi-related sell-off. 

FTX’s Collapse Pushed Crypto Lender BlockFi Into Bankruptcy

Crypto lender BlockFi has just filed for bankruptcy as contagion from the collapse of the crypto exchange FTX continued to spread. Previously, BlockFi halted withdrawals after FTX problems emerged, so the filing is not a big surprise for those who follow crypto markets.

Back in June, BlockFi received emergency funding from FTX when it faced a liquidity crunch after the fall of Three Arrows Capital.

BlockFi noted that the Chapter 11 protection should help “stabilize its business and provide the company with the opportunity to consummate a comprehensive restructuring transaction that maximizes value for all clients and other stakeholders.”

BlockFi also noted that it had $256.9 million of cash on hand, which should be enough to “provide sufficient liquidity to support certain operations during the restructuring process.”

Crypto Markets Stay Relatively Calm As Traders Were Prepared For Bad News

At this point, the reaction of the crypto market is relatively calm. Bitcoin is trading near the $16,300 level, while Ethereum  settled below the $1,200 level.

Solana, which is one of the main victims of the FTX collapse, has once again found itself under pressure and moved towards the $13.50 level.

The market reaction is limited as crypto traders were prepared for BlockFi’s filing after the company halted withdrawals. There are no big news in the initial filing, which is also good for crypto markets.

Anyway, traders will remain focused on finding weak players as the industry continues to deal with the consequences of FTX’s collapse. The general market sentiment remains bearish, so any negative surprise could trigger a strong sell-off in crypto markets.

For a look at all of today’s economic events, check out our economic calendar.

Crypto Market Daily Highlights – BNB Leads Bullish Top Ten Session

Key Insights:

  • It was a bullish Wednesday session for the crypto top ten. Binance coin (BNB) led the way, with DOGE and ETH also on the move.
  • FTX contagion risk eased further on Wednesday, supporting another bullish session.
  • The crypto market cap rose by $24.6 billion to $788.3 billion.

It was a bullish Wednesday session for the crypto top ten. BNB led the way, with ETH and DOGE also making moves. Notably, BTC avoided sub-$16,000 for the first time in three sessions.

The market focus remained on FTX contagion risk that continued to ease mid-week. Market reaction to the reports of FTX holding $1.24 billion in cash and market interest in FTX assets delivered further support on Wednesday.

On Wednesday, former FTX CEO Sam Bankman-Fried was back in the news. A letter to employees hit the news wires, with the former CEO raising hopes of saving the business. In the letter, Bankman-Fried wrapped up by writing,

“Maybe there still is a chance to save the company. I believe that there are billions of dollars of genuine interest from new investors that could go to making customers whole. But I can’t promise you that anything will happen because it’s not my choice.”

The upside came despite lawmakers calling for an investigation into FTX and calls for greater regulatory oversight.

It was also a bullish session for the US equity markets, with the NASDAQ Composite Index rising by 0.99%. The FOMC meeting minutes delivered support, with the Fed signaling a monetary policy pivot.

However, US economic indicators disappointed, limiting the upside for the NASDAQ. There are no US stats to consider today, with the US markets closed for Thanksgiving.

NASDAQ correlation.
Total Market Cap – NASDAQ – 241122 Daily Chart

Crypto Market Finds Further Support on Easing FTX Contagion Risk

It was a bullish Wednesday session. The crypto market fell to an early low of $759.2 billion before rising to a high of $794.9 billion.

Despite easing back from the day high, the crypto market rose by $24.6 billion (+3.22%) to end the day at $788.3 billion. The bullish session left the market cap down $185.5 billion for November.

Crypto market cap fell short of $800 bn.
Total Market Cap 241122 Daily Chart

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

It was a bullish Wednesday session for the crypto top ten.

BNB led the way, surging by 12.17%, with DOGE (+4.20%) and ETH (+3.99%) seeing solid gains.

ADA (+1.92%), BTC (+2.44%), MATIC (+1.41%), and XRP (+1.71%) trailed the front runners, however.

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

Dash (DASH) and solana (SOL) led the way, rallying by 15.60% and 15.54%, respectively. Litecoin (LTC) was also a front-runner, rising by 11.84%.

Osmosis (OSMO) and trust wallet token (TWT) bucked the broader market trend, falling by 0.33% and 0.56%, respectively.

24-Hour Liquidations Hold at Sub-$100m on Second Bullish Session

Over 24 hours, total liquidations eased further back on Wednesday. At the time of writing, 24-hour liquidations stood at $92.83 million versus $99.83 million on Wednesday morning.

Liquidated traders over the last 24 hours also decreased. At the time of writing, liquidated traders stood at 29,688 versus 34,317 on Wednesday morning. Liquidations were up over one hour, while down over 12 and four hours.

Crypto liquidations fall.
Total Crypto Liquidations 241122

According to Coinglass, 12-hour liquidations fell from $63.26 million to $48.10 million, with four-hour liquidations down from $7.43 million to $5.98 million. However, one-hour liquidations were up from $3.13 million to $3.58 million.

The chart below shows market conditions throughout the session.

Crypto market finds strong late support.
Total Market Cap 241122 Hourly Chart

 

Bitcoin Tests the Strength of Support

Market Picture

Bitcoin has lost 4% in the past 24 hours, once again testing the strength of the $16K area. Ethereum is down 7.8% overnight to $1120. Other leading altcoins in the top 10 were down 5.5% (BNB) to 10.6% (Dogecoin).

Bitcoin 4 hour chart

Total cryptocurrency market capitalisation, according to CoinMarketCap, sank to $795bn, losing 4.9% overnight and 5.6% for the week. The cryptocurrency fear and greed index is down to 21 points by Monday versus 24 just over a week ago.

Bitcoin failed to develop a rebound last week, facing an intensified sell-off near $17K and about 23.6% of the move down from 5 to 10 November. Such a weak rebound indicates solid bearish pressure, forcing us to expect another move towards the lower boundary at $15.8K.

A consolidation below that level could start a new downside wave with a potential target of $12K. However, this is a very distant target, while round levels of $15K and $14K could be the intermediate ones.

News Background

Bitcoin’s mining difficulty continues to increase, rewriting an all-time high. The falling price has resulted in the first cryptocurrency being mined at a loss on average. The falling price and high interest rates make us expect miner activity to drop and a subsequent decrease in difficulty. However, there could likely be a brief struggle for market share amongst miners: with bankruptcies and takeovers. This will be interesting.

According to the Nansen report, the collapse of FTX was directly linked to Terra’s failure in May. The unrealised loss of the “average” long-term bitcoin investor reached 33%, according to Glassnode’s calculations.

The impact of the FTX collapse will still be evident for the foreseeable future, according to a statement to investors from venture capital firm Multicoin Capital. Many players will cease to exist, putting pressure on the liquidity of the crypto market.

Some major crypto exchanges have suspended accepting deposits and withdrawals in Stablecoins, which are hosted on the Solana blockchain. The decision was made due to Solana‘s association with the collapsed FTX exchange, which used the blockchain’s power.

The Australian unit of consultancy firm KPMG has said that meta-universes have the real potential to change many areas of life. In doing so, large companies will contribute to the technology’s adoption.

by FxPro’s Senior Market Analyst Alex Kuptsikevich

Crypto Market Daily Highlights – BNB Leads a Mixed Top Ten Session

Key Insights:

  • It was a mixed Friday session for the crypto top ten, with Binance coin (BNB) leading the way.
  • An eventless day in the crypto market left the broader crypto market in a range-bound pattern throughout the session.
  • The crypto market cap rose by $3.5 billion to end the day at $790.2 billion.

It was a mixed Friday session for the crypto top ten. Binance coin (BNB) led the way, while dogecoin (DOGE) fell for the third day in a row. Notably, BTC fell short of $17,000 for the second consecutive day.

Australia and the UK are among the nations revisiting crypto regulations. After increased regulatory activity in late 2021, which contributed to the beginning of the crypto winter, there had been little activity before the collapse of FTX.

According to the Financial Review, Australian regulators plan to roll out regulations for exchanges in 2023 in response to the FTX collapse. The government will reportedly ‘introduce custodial and exchange legislation.’

In the UK, the Financial Conduct Authority aims to take a harder line by proposing to ban crypto platforms.

The FCA has reportedly rejected or withdrawn 85% of license applications from crypto trading firms. Before its collapse, FTX could not operate in the UK for not having FCA approval.

In the US, CFTC Commissioner Mersinger has called for action and for lawmakers to initiate collaboration between the respective regulatory authorities.

Away from the crypto market, there were no US economic indicators to distract investors. On Friday, the NASDAQ Composite Index ended the day flat.

 

NASDAQ correlation.
Total Market Cap – NASDAQ – 191122 Daily Chart

Crypto Market Ends a Two-Day Losing Streak on a Quiet Friday Session

It was a bullish Friday session. The crypto market rose to an early high of $803.9 billion before sliding to a late afternoon low of $780.6 billion. However, finding late support, the crypto market moved back into positive territory.

The late recovery gave the crypto market cap a modest $3.5 billion gain to end the day at $790.2 billion.

Crypto market cap holds steady.
Total Market Cap 191122 Daily Chart

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

It was a mixed Friday session for the crypto top ten.

BNB led the way, rising by 2.24%. ADA (+0.31%), BTC (+0.01%), ETH (+0.96%), MATIC (+0.64%), and XRP (+0.10%) saw modest gains.

However, DOGE bucked the trend, falling by 0.12%

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

Chiliz (CHZ) led the way, rallying by 15.73%, with chain (XCN) and algorand (ALGO) seeing gains of 8.84% and 11.31%, respectively.

However, apecoin (APE) led the way down, sliding by 7.69%, with kava (KAVA) and solana (SOL) seeing losses of 5.18% and 2.71%, respectively.

24-Hour Liquidations Continued to Slide as Trading Volumes Tumble

Over 24 hours, total liquidations fell further below-usual levels as trading volumes continued to trend lower.

Crypto trading volumes
Trading Volumes 191122

At the time of writing, 24-hour liquidations stood at $33.67 million versus $43.31 million on Friday morning.

Liquidated traders over the last 24 hours also declined. At the time of writing, liquidated traders stood at 14,614 versus 19,228 on Friday morning. Liquidations were down over one and twelve hours while up over four hours.

Crypto liquidations fall further.
Total Crypto Liquidations 191122

According to Coinglass, 12-hour liquidations fell from $24.16 million to $16.84 million, with one-hour liquidations down $0.580 million to $0.370 million. However, four-hour liquidations rose from $2.54 million to $2.69 million.

The chart below shows market conditions throughout the session.

Crypto market finds late support.
Total Market Cap 191122 Hourly Chart

ETH and BTC Find Support, with a BTC Return To $17,000 a Bullish Signal

Key Insights:

  • Bitcoin (BTC) and ethereum (ETH) saw diverging trends on Thursday, with ETH seeing red for the fifth time in seven sessions.
  • Bearish market sentiment left ETH on the back foot as investors responded to more FTX contagion news.
  • This morning, sentiment improved despite lingering contagion risk as investors look to move on from the demise of FTX.

Ethereum (ETH) fell by 1.32% on Thursday. Following a 2.96% slide on Wednesday, ETH ended the day at $1,199. Notably, ETH wrapped up the day at sub-$1,200 for the first time since November 9.

A bullish start to the day saw ETH rise to an early high of $1,227. Coming up short of the First Major Resistance Level (R1) at $1,260, ETH slid to a late morning low of $1,181. However, steering clear of the First Major Support Level (S1) at $1,178, ETH revisited $1,217 before falling back into the red.

On Thursday, bitcoin (BTC) rose by 0.17%. Partially reversing a 1.37% loss from Wednesday, BTC ended the day at $16,683. Notably, BTC logged the fourth gain from twelve sessions while falling short of $17,000 for the second time since 2020.

A bullish start to the day saw BTC rise to an early high of $16,735. BTC broke through the First Major Resistance Level (R1) at $16,988 before falling to an early afternoon low of $16,410. Steering clear of the First Major Support Level (S1) at $16,33, BTC found late support to wrap up the day in positive territory.

On Thursday, FTX fallout continued to weigh on investor sentiment. BlockFi, Liquid, Genesis, and Gemini Earn news tested buyer appetite, with more likely to follow.

News of BinanceByBit, and OKX suspending support for SOL-based stablecoins USD Coin (USDC) and USD Tether (USDT) was also market bearish.

Adding to the market angst was hawkish Fed chatter that raised questions over the market’s Fed pivot bet.

However, disappointing US economic indicators provided support later in the day, with news of Binance resuming regular services for Solana-based USDT deposits offering relief.

BTC and ETH tracked a similar path to Thursday this morning, striking early highs. However, contagion risk lingers, and there is the threat of hawkish Fed chatter to reverse the early gains.

Investors will need to monitor the crypto news wires and track the NASDAQ Composite Index later in the day for direction.

NASDAQ correlation.
NASDAQ BTC ETH Correlation – 181122 Daily Chart

Ethereum (ETH) Price Action

At the time of writing, ETH was down 1.54% to $1,218. A bullish morning saw ETH rise from an early low of $1,198 to a high of $1,232.

ETH broke through the First Major Resistance Level (R1) at $1,224 before easing back.

ETH on the move.
ETHUSD 181122 Daily Chart

Technical Indicators

ETH needs to avoid the $1,202 pivot to retarget the First Major Resistance Level (R1) at $1,224 and the morning high of $1,232. An ETH return to $1,230 would signal a bullish afternoon session. However, the crypto news wires and the NASDAQ Composite Index will need to provide support.

In the event of an extended rally, ETH would likely test the Second Major Resistance Level (R2) at $1,248 and resistance at $1,250. The Third Major Resistance Level (R3) sits at $1,294.

A fall through the pivot would bring the First Major Support Level (S1) at $1,178 into play. However, barring another extended afternoon sell-off, ETH should avoid sub-$1,150. The Second Major Support Level (S2) at $1,156 should limit the downside.

The Third Major Support Level sits at $1,110.

ETH resistance levels in play.
ETHUSD 181122 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. Ethereum sat below the 50-day EMA, currently at $1,264. The 50-day EMA fell back from the 200-day EMA, with the 100-day EMA easing back from the 200-day EMA, delivering bearish signals.

A move through R1 ($1,227) would bring R2 ($1,248) and the 50-day EMA ($1,264) into play. However, failure to move through the 50-day EMA would leave ETH under pressure.

EMAs remain bearish.
ETHUSD 181122 4 Hourly Chart

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.74% to $16,806. A mixed morning saw BTC fall to an early low of $16,673 before rising to a high of $16,977.

BTC broke through the First Major Resistance Level (R1) at $16,809 before easing back.

BTC finds support.
BTCUSD 181122 Daily Chart

Technical Indicators

BTC needs to avoid the $16,609 pivot to break out from the First Major Resistance Level (R1) at $16,809 to retarget the Second Major Resistance Level (R2) at $16,934. A move back through R1 and a return to $16,900 would bring the Third Major Resistance Level (R3) at $17,259 into view.

We will expect FMOC member chatter and the NASDAQ Composite Index to influence alongside the crypto news wires.

A fall through the pivot would bring the First Major Support Level (S1) at $16,484 into play. Barring another extended sell-off, BTC should avoid sub-$16,000. The Second Major Support Level (S2) at $16,284 should limit the downside. However, negative FTX-related news could send BTC to sub-$16,000.

The Third Major Support Level (S3) sits at $15,959.

BTC resistance levels in play.
BTCUSD 181122 Houly Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. This morning, bitcoin sat below the 50-day EMA, currently at $17,143. The 50-day EMA eased back from the 200-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.

A BTC move through R1 ($16,809) and R2 ($16,934) would give the bulls a run at the 50-day EMA ($17,157) and R3 ($17,259). However, failure to move through the 50-day EMA would leave BTC under pressure and S1 ($16,484) in view.

EMAs remain bearish.
BTCUSD 181122 4 Hourly Chart

Crypto Market Daily Highlights – XRP and BTC Buck the Top Ten Trend

Key Insights:

  • It was a mixed Thursday session for the crypto top ten, with XRP finding support to buck the broader trend.
  • News coverage of the FTX fallout, the increased regulatory scrutiny, and contagion risk weighed.
  • The crypto market cap fell by $3.4 billion to end the day at $786.6 billion.

It was a mixed Thursday session for the crypto top ten. Polygon (MATIC) led the way down, while XRP and BTC bucked the top ten trend. BTC rose for the third time in seven sessions. Notably, BTC fell short of $17,000 for the first time in four sessions.

The fallout from the collapse of FTX continued to leave the broader crypto market under pressure. Following the news of BlockFi, Liquid, Genesis, and Gemini Earn freezing withdrawals, stablecoins became the area of focus on Thursday.

The news hit the wires on Thursday of exchanges suspending support for Solana-based USD Coin (USDC) and USD Tether (USDT). BinanceByBit, and OKX suspended the SOL-based stablecoins.

While Binance removed the suspension on Solana USDT deposits, the latest news further impacted investor confidence. On Thursday, Binance issued a notice, suspending deposits of USDC (SOL) and USDT (SOL). However, Binance provided no reason for the suspension.

Solana’s close link with Alameda Research, FTX, and Sam Bankman-Fried saw SOL tumble by 59.7% last week.

Hawkish Fed chatter added to the bearish mood, which led the NASDAQ Composite Index down 0.35% on the day. FOMC member Bullard spoke on Thursday, saying that Fed rate hikes have only had a limited impact on inflation.

Later today, a lack of US economic indicators or FOMC member speeches will leave the crypto market in the hands of FTX-linked news and the NASDAQ Index. This morning, the NASDAQ mini was up 19.50 points.

NASDAQ correlation.
Total Market Cap – NASDAQ – 181122 Daily Chart

Crypto Market Falls for a Second Session on FTX Contagion Risk

It was a bearish Thursday session. The crypto market rose to an early high of $797.6 billion before sliding to a low of $773.0 billion.

FTX-linked news updates and sentiment towards the suspension of SOL-based USDC and USDT weighed on investor sentiment.

While recovering from sub-$780 billion, the market cap fell by $3.4 billion to end the day at $786.7 billion. The Thursday decline left the market cap down $184 billion in November.

Crypto market stuck at sub-$800 bn.
Total Market Cap 181122 Daily Chart

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

It was a mixed Thursday session for the crypto top ten.

XRP and BTC bucked the trend, with gains of 1.78% and 0.17%, respectively.

However, MATIC led the way down, sliding by 2.97%, with ADA (-2.11%) struggling.

BNB (-1.44%), DOGE (-1.05%), and ETH (-1.30%) also saw red.

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

Litecoin (LTC) led the way, rallying by 8.89%. Kava (KAVA) and Arweave (AR) were also among the front runners, rising by 5.31% and 5.29%, respectively.

However, curve DAO token (CRV) and near protocol (NEAR) led the way down, with losses of 5.66% and 4.79%, respectively. Solana (SOL) also struggled, falling by 4.42%.

24-Hour Liquidations Continued to Slide Amid Rising Contagion Risk

Over 24 hours, total liquidations fell further below-usual levels as contagion risk intensified. At the time of writing, 24-hour liquidations stood at $43.31 million, down from $62.13 million on Thursday morning.

Liquidated traders over the last 24 hours also declined. At the time of writing, liquidated traders stood at 19,228 versus 28,735 on Thursday morning. Liquidations were down over 12 and four hours and over one hour.

Crypto liquidations slide.
Total Crypto Liquidations 181122

According to Coinglass, 12-hour liquidations fell from $38.35 million to $24.16 million, with four-hour liquidations down from $5.59 million to $2.54 million. One-hour liquidations fell from $3.02 million to $0.580 million.

The chart below shows market conditions throughout the session.

Crypto market sees choppy end to the session.
Total Market Cap 181122 Hourly Chart

Crypto Markets Dive As FTX Files For Bankruptcy

Key Insights

  • Crypto markets are under pressure as FTX filed for bankruptcy protection. 
  • The filing includes FTX.com, FTX US, and Alameda Research.
  • FTT, the native token of the FTX exchange, settled near the $2.20 level. 

FTX Filed For Chapter 11 Protection

Crypto markets moved lower after FTX announced that it would file for bankruptcy protection. The Chapter 11 filing includes FTX.com, FTX US, and Alameda Research.

Sam Bankman-Fried resigned as CEO and will remain to assist an orderly transition. He will be replaced by John J. Ray III. Mr. Ray noted: “The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize reсoveries for stakeholders.”

It should be noted that Sam Bankman-Fried has previously said that FTX US was 100% liquid. However, the company is included in the Chapter 11 filing, which means that it was also impacted by the recent events.

Bitcoin Settled Back Below The $17000 Level

Not surprisingly, FTX bankruptcy had a negative impact on crypto markets. Bitcoin managed to settle below the $17000 level. Ethereum moved below $1250, while XRP declined towards $0.37. Solana, which has been under serious pressure due to its relationship with FTX, is currently trading near the $16.00 level. FTT, the native token of the FTX exchange, has settled near the $2.20 level.

Traders fear that FTX problems will lead to financial contagion. These worries have already materialized as crypto lender BlockFi paused withdrawals from the platform. BlockFi noted: “Given the lack of clarity on the status of FTX.com, FTX US and Alameda, we are not able to operate business as usual.” This statement was made before FTX filed for bankruptcy.

Obviously, market participants are worried that other firms, which have been connected to FTX and Alameda, may face problems, leading to forced liquidations of their crypto assets.

In the longer-term, stricter regulation is the key risk for the crypto industry. As FTX filed for Chapter 11 protection, the details of the FTX crash will soon be known. While stricter regulation may ultimately lead to wider crypto adoption, it will certainly put pressure on many existing crypto projects.

Have Cryptocurrencies Bottomed Out or Do They Have Additional Room to Fall?

Market Picture

Bitcoin rewrote two-year lows on Thursday morning near $15,550, losing more than 27% from Saturday’s local highs. CoinMarketCap estimates the total capitalisation of the crypto market to be at 839bn, down 6.7% from levels 24 hours ago and 21% below Saturday’s peaks.

Bitcoin daily chart

Ethereum is now a third cheaper than levels at the end of last week, and its sell-off started noticeably from the 200-day moving average, which had previously acted as resistance in April. Near the $1070 mark, there is a noticeable strengthening of buying, as in July.

Ethereum daily chart

The crypto market is now in a panic liquidation phase, occurring amid a raid on cryptocurrencies, which can be compared to the bank run in the early 20th century. The fundamental difference is that banking was already an established business back then, although regulation was in its infancy. The current crisis may be the catalyst for crypto regulation.

If we look at the situation from a market speculator’s perspective, we are in the process of capitulation. Such moments often precede long-term reversals. But it is worth realising that despite Bitcoin’s 5% rebound from the start of the day and the double-digit rise in yesterday’s casualties, the sell-off may not yet be over.

In our view, the crypto market is now in the same phase where it was in late 2018 when the bulk of the decline was behind it, but the best speculative buying moment was still a year away.

News Background

The prolonged, almost 5-month sideways slide has relaxed market participants. The sharp fall in crypto assets took traders by surprise. Investors have been forced to sell off cryptocurrencies to cover losses on loans secured against them due to margin calls. The FTX exchange itself, along with Alameda, may also have been selling off assets.

The most significant drop in the top-100 crypto was Solana, which collapsed by 49%, as one of the largest holders of SOL was Alameda Research, the investment company of FTX exchange head Sam Bankman-Fried.

Marathon Digital CEO Fred Thiel said his mining firm was the second-largest public company in the world (11,300 BTC) in terms of bitcoins stored, thanks to its retention of mined BTC. MicroStrategy remains the leader, with around 130,000 BTC stored in its wallets.

According to a survey by Nickel Digital Asset Management, 92% of professional investors are optimistic about the outlook for the cryptocurrency market, despite its decline.

by FxPro’s Senior Market Analyst Alex Kuptsikevich

Crypto Market Daily Highlights – SOL Tumbles Out of Top Ten

Key Insights:

  • Solana (SOL) tumbled by 40% to leave the crypto top ten, with BNB and XRP seeing heavy losses.
  • Binance walked away from the FTX deal, citing the mishandling of customer funds and regulatory scrutiny as the reasons to withdraw.
  • The crypto market cap slumped by $122.7 billion to end the day at $753.9 billion.

It was a bearish Wednesday session for the crypto top ten. SOL tumbled by 38.6% to leave the top ten, with BNB and XRP leading the crypto top ten losses. BTC saw red for a fourth consecutive session. Notably, BTC tumbled to sub-$16,000 for the first time since November 2020.

The US economic calendar and the mid-term elections took a back seat on Wednesday. The market focus remained on the FTX and Binance deal following news of Binance signing a Letter of Intent (LOI) on Tuesday.

However, following company due diligence, Binance announced it would not proceed with the acquisition.

In withdrawing from the deal, Binance stated,

“As a result of corporate due diligence, as well as the latest news reports regarding the mishandling of customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com.”

According to Bloomberg, FTX CEO Sam Bankman-Fried told investors that there is a shortfall of up to $8 billion and that without a cash injection, the company would need to file for bankruptcy.

Binance CEO Changpeng Zhao (CZ) summarized the lay of the land, saying,

“FTX going down is not good for anyone in the industry. DO not view it as a “win for us”. User confidence is severely shaken. Regulators will scrutinize exchanges even more. Licenses around the globe will be harder to get. And people now think we are the biggest and will attack us more. We must significantly increase our transparency, proof-of-reserves, insurance funds, etc. A lot more to come in this area. We have a lot of tough work ahead of us. Not to mention prices swinging wildly.”

With FTX facing bankruptcy, contagion risk and increased regulatory scrutiny will be focal points over the near term.

SEC Chairman Gary Gensler commented on the events of the last 48 hours, saying,

“Investors get hurt when we don’t rely upon the time-tested public policy guardrails.”

The crypto market events of the last 48 hours led to a further decoupling from the NASDAQ Composite Index. While the NASDAQ fell by 2.48%, the crypto market slumped by 14% on Wednesday.

For the day ahead, the crypto market will remain in the hands of the news wires. Expect any domino effect to hit the crypto market for a third consecutive day. However, investors may hold onto the hope of a last-minute deal to save FTX from bankruptcy.

NASDAQ decoupling continues.
Total Market Cap – NASDAQ – 101122 Daily Chart

Crypto Market Sees Largest Single-Day Fall Since June 13

It was a bearish Wednesday session. The crypto market rose to an early morning high of $883.4 billion before sliding to a low of $736.4 billion.

On the day, the crypto market slumped by $122.7 billion to end the day at $753.9 billion. The day’s losses were the most marked since June 13, when investors responded to Celsius freezing withdrawals. On June 13, the crypto market tumbled by $130.6 billion.

Crypto market slides to sub-$800bn.
Total Market Cap 101122 Daily Chart

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

It was a bearish Wednesday session for the crypto top ten.

SOL tumbled out of the crypto top ten after a 38.6% slump, with polygon (MATIC) taking its place. MATIC fell by 22.04%.

BNB and XRP led the rest of the top ten into the red, with losses of 18.61% and 18.14%, respectively.

However, things were no better for the rest.

ADA (-14.78%), BTC (-14.20%), DOGE (-16.35%), and ETH (-17.956%) all saw heavy losses.

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

FTX token (FTT) responded to Binance pulling the plug, tumbling by 58.74%, with SOL close behind. Lido DAO (LDO) was among the worst performers, sliding by 28.80%.

No cryptos ended the day in positive territory on Wednesday.

24-Hour Crypto Liquidations Ease Back Despite Binance Withdrawal

Over 24 hours, total liquidations eased back, despite another crypto meltdown. At the time of writing, 24-hour liquidations stood at $585.05 million, down from $854.42 million on Wednesday morning.

Liquidated traders over the last 24 hours also eased back but remained elevated. At the time of writing, liquidated traders stood at 329,379 versus 403,858 on Wednesday morning. Liquidations were down over one and four hours and over 12 hours.

Crypto liquidations ease.
Total Crypto Liquidations 101122

According to Coinglass, 12-hour liquidations fell from $544.12 million to $391.49 million, with four-hour liquidations down from $482.13 million to $186.75 million. One-hour liquidations slid from $280.40 million to $23.65 million, reflecting chaotic market conditions.

The chart below shows market conditions throughout the session.

Crypto market settles.
Total Market Cap 101122 Hourly Chart

Crypto Markets Fall Amid Concerns Binance Won’t Buy FTX

Key Insights

  • Crypto markets are in free fall as traders worry that Binance will walk away from the deal with FTX. 
  • Solana is under huge pressure, and Crypto.com has halted stablecoin withdrawals on Solana blockchain. 
  • Bitcoin tested yearly lows below the $17000 level, which may lead to another wave of selling. 

Binance Is Reportedly Shocked By The State Of FTX’s Finances

The crypto market sell-off continues as worries grow about potential contagion from FTX problems.

According to a recent CoinDesk report, Binance is leaning towards walking away from the deal with FTX due to the weakness of FTX’s balance sheet.

Meanwhile, Crypto.com has reportedly suspended withdrawals and deposits of USDC and USDT on Solana blockchain. Solana is down by roughly 40% in the last 24 hours.

It looks that FTX will also have problems with U.S. regulators. A recent Bloomberg report indicated that SEC and CFTC were probing the relationship between FTX.com (which could be bought by Binance) and FTX U.S. (which is not part of the potential deal with Binance).

A flurry of bad news put significant pressure on crypto markets. Bitcoin tested yearly lows below the $17000 level. Ethereum settled below $1200, while XRP moved towards $0.35.

FTX exchange’s token FTT is trading near the $3.50 level. A few days ago, FTT was valued at $25. Meanwhile, Binance’s BNB has also found itself under significant pressure and pulled back towards the $290 level.

Financial Contagion And Forced Liquidations Are The Main Risks For Crypto Markets

Crypto markets are clearly in a panic mode today. FTX is a top-5 exchange by volume, and its problems will be felt by the whole market. If FTX has financial problems and is forced to liquidate holdings, these forced sales will push the market to lower levels and lead to an avalanche of liquidations from trading firms who used leverage to buy crypto.

The recent developments in Bitcoin are perhaps, the biggest risk for crypto markets right now. Bitcoin has been consolidating in a wide range between $18000 and $25000 since June. Market participants had plenty of time to increase their positions in Bitcoin within this trading range.

Now, Bitcoin managed to get below $17000, so everybody who bought Bitcoin in the $18000 – $25000 range is losing money. If Bitcoin manages to settle below $17000, it will find itself under more pressure as some players will certainly get margin calls. Some miners, who hoped that Bitcoin will ultimately move higher, may be forced to sell Bitcoin to support their balance sheets.

All in all, the next few days will be quite eventful for crypto markets.

Things Go Wild in Crypto

Market Picture

The cryptocurrency market lost another 7.7% to $900B over the past 24 hours, returning capitalisation to the area of September-October lows; at the peak of the decline, it was approaching the current market cycle lows set in June. Leading altcoins in the top 10 fell from 5.5% (BNB) to 22.9% (Dogecoin).

Bitcoin 15 minutes chart

At its worst moment of market capitulation on Tuesday night, Bitcoin was down to $17.1K, renewing 2-year lows. Many potential long-term investors in cryptocurrencies are now trying to assess whether we saw a final surrender yesterday, followed by a reversal. So far, we have doubts that the most worrisome part is behind us.

BTC’s sharp decline earlier in the day came amid an abrupt collapse in one of the largest crypto exchanges FTX’s own FTT token, which now trades at $4.6, having lost over 80% from $25.6 on Saturday. And all this on high trading volumes.

Solana 15 minutes chart

Another victim of the latest crypto chaos was Solana coin, which had lost 55% since Saturday before the crypto market went wild.

News Background

On Tuesday evening, it was reported that Binance had agreed to acquire cryptocurrency exchange FTX amid investor panic and a liquidity crisis at what was once the third-largest cryptocurrency exchange.

The news failed to stem capital outflows, and the cryptocurrency sell-off continued, albeit calmer.

Despite some resolution, the news did not trigger a market recovery. Some experts say what has happened threatens the crypto market with significant disruption.

Other observers point out that the collapse of the crypto market occurred on the day of the US congressional elections, which could have triggered selling in an environment of uncertainty, which is always bad for risky assets such as cryptocurrencies.

by FxPro’s Senior Market Analyst Alex Kuptsikevich

ADA Price Prediction: A Bearish Morning Brings $0.330 into View

Key Insights:

  • On Tuesday, cardano (ADA) fell by 7.92% to end the day at sub-$0.40 for the first time in five sessions.
  • The collapse of FTX and news of Binance’s plans to acquire FTX left ADA in the deep red.
  • The technical indicators are bearish, with ADA sitting below the 100-day EMA, bringing $0.330 into view.

On Tuesday, ADA fell by 7.92%. Reversing a 0.50% gain from Monday, ADA ended the day at $0.372. Notably, ADA wrapped up the day at sub-$0.40 for the first time in five sessions while avoiding the October low of $0.330.

After a bearish morning, ADA rose to a late afternoon high of $0.417. ADA broke through the First Major Resistance Level (R1) at $0.414 before sliding to a late low of $0.345.

The FTX-fueled sell-off saw ADA slide through the day’s Major Support Levels. However, finding late support, ADA moved back through the Third Major Support Level (S3) to end the day at $0.372.

Relative to the broader crypto market, the loss was modest, with DOGE, ETH, SOL, and XRP seeing double-digit declines.

News of FTX facing a liquidity crunch and the collapse of FTT sent ADA and the broader crypto market into the red. However, reports of Binance planning to acquire FTX provided modest support.

For ADA investors, avoiding the 2022 low of $0.330 will provide comfort.

IOHK Updates Overshadowed by FTX Woes

On Tuesday, Input Output HK (IOHK) provided Twitter followers with an overview of SECP and how Cardano will support SECP.

Cardano founder Charles Hoskinson shared a hitwiththebusiness tweet highlighting sentiment toward the Cardano ecosystem. The tweet stated,

“Cardano – No liquidity issues, coin distribution almost entirely from retail (no VCs or insider manipulation), progression based on research, never went offline, no hacks. Cardano is a bulletproof example of how to properly build a crypto ecosystem.“

This week, news of Hoskinson announcing that he will not retire also remains price positive amid the current market turmoil.

However, price movement today will likely hinge on crypto market updates following the demise of FTX. Contagion fear and the threat of regulatory action left ADA in the red this morning.

ADA Price Action

This morning, ADA was down 1.61% to $0.366. A mixed morning saw ADA rise to an early high of $0.376 before falling to a low of $0.355.

ADA under pressure.
ADAUSD 091122 Daily Chart

Technical Indicators

ADA needs to move through the $0.378 pivot to target the First Major Resistance Level (R1) at $0.411. A return to $0.400 would signal a possible breakout. However, ADA would also need the support of the broader market for a sustained rebound.

In case of an extended rally, the bulls would likely take a run at Tuesday’s high of $0.417 but fall short of the Second Major Resistance Level (R2) at $0.450. Crypto market updates following the demise of FTT will influence. The Third Major Resistance Level (R3) sits at $0.522.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.339 and the 2022 low of $0.330 in play. However, barring another extended sell-off, ADA should avoid sub-$0.330.

ADA support levels in play below the pivot.
ADAUSD 091122 Hourly Chart

This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

ADA sat below the 100-day, currently at $0.398. The 50-day EMA crossed through the 200-day EMA, with the 100-day EMA pulling back from the 200-day EMA, delivering bearish signals.

A move through the 100-day EMA ($0.398) would support a breakout from the 50-day and 200-day EMAs to bring R1 ($0.411) into view. However, a failure to move through the 100-day EMA ($0.398) would give the bears a run at S1 ($0.339) and the 2022 low ($0.330).

EMAs bearish.
ADAUSD 091122 4-Hourly Chart

Crypto Market Daily Highlights – SOL and DOGE Lead Top Ten South

Key Insights:

  • Solana (SOL) and dogecoin (DOGE) led the crypto top ten into the deep red.
  • News of FTX facing a liquidity crunch, followed by Binance agreeing to acquire FTX, sent the crypto market into a tailspin.
  • The crypto market cap fell by $98.4 billion to end the day at $876.5 billion.

It was a bearish Tuesday session for the crypto top ten, with SOL and DOGE leading the top ten down. BTC saw red for a third consecutive session. Notably, BTC tumbled to a two-year low of $16,950 before steadying. BTC last visited sub-$17,000 in November 2020.

There were no US economic indicators to influence, leaving the investors to react to the collapse of FTX and the SEC’s win over LBRY.

On Tuesday, news hit the wires of FTX facing a liquidity crunch. FTX token (FTT) tumbled to $2.54, its lowest level since May 2020. News of Binance agreeing to acquire FTX eased some of the pain. FTT ended the day down 75.11% to $5.49.

Adding to the bearish mood was news of the SEC winning its case against LBRY. LBRY may be insignificant in size, but the ruling could raise concerns over the likely outcome of the SEC v Ripple case.

While the crypto market went into a tailspin, the NASDAQ Composite Index rose for a third consecutive session. Decoupling from the NASDAQ leaves the crypto market in the hands of regulator news and investor fears of contagion from the FTX collapse.

On Tuesday, the NASDAQ Composite Index rose by 0.49%. This morning, the NASDAQ mini was up 3.75 points.

NASDAQ uncouples.
Total Market Cap – NASDAQ – 091122 Daily Chart

Crypto Market Sees Largest Single-Day Fall Since August Fed Policy Pivot

It was a bearish Tuesday session. The crypto market rose to a late afternoon high of $993.7 billion before sliding to a low of $812.8 billion.

The crypto market fell by $180.9 billion, from peak to trough, before a partial recovery to end the day at $876.5 billion.

The bearish session left the crypto market down $98.4 billion for the session, the largest fall since August 19. (See chart below).

Crypto market tumbles to sub-$900bn.
Total Market Cap 091122 Daily Chart

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

It was a bearish Tuesday session for the crypto top ten.

SOL and DOGE led the way down, tumbling by 20.36% and 20.68%, respectively.

BTC (-9.95%), ETH (-14.93%), and XRP (-12.74%) also saw heavy losses

ADA (-7.92%) and BNB (-2.76%) fared better than their peers.

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

BinaryX (BNX) bucked the top 100 trend, rising by 2.71%.

However, it was a bearish session for the rest of the pack.

FTX token (FTT) tumbled by 75.11%, sending the broader crypto market into a tailspin on news of a liquidity crunch and Binance buyout.

EthereumPoW (ETHW) and lido DAO (LDO) were among the worst performers, sliding by 24.21% and 22.59%, respectively.

24-Hour Crypto Liquidations Spike on Crypto Market Meltdown

Over 24 hours, total liquidations surged in response to the collapse of FTX. At the time of writing, 24-hour liquidations stood at $854.42 million, up from $137.65 million on Tuesday morning.

Liquidated traders over the last 24 hours also surged. At the time of writing, liquidated traders stood at 403,858 versus 72,793 on Tuesday morning. Liquidations were up over one and four hours and over 12 hours.

Crypto liquidations spike.
Total Crypto Liquidations 091122

According to Coinglass, 12-hour liquidations jumped from $77.08 million to $544.12 million, with four-hour liquidations up from $53.96 million to $482.13 million. One-hour liquidations surged from $1.06 million to $280.40 million, reflecting chaotic market conditions.

The chart below shows market conditions throughout the session.

Crypto market sees heavy losses.
Total Market Cap 091122 Hourly Chart

5 Things to Know in Crypto Today – FTX Demise Sends Cryptos Crashing

Key Insights:

  • XRP and the broader crypto market tumble as the market reacts to the demise of FTX.
  • FTX agrees to sell to Binance to avoid another crypto market catastrophe.
  • SEC wins its case against LBRY, which could have a bearing on the SEC v Ripple case.

Crypto Market Sees Largest Single-Day Fall Since June 13

With just over two hours of the Tuesday session remaining (UTC), the crypto market is down $101 billion to $873.7 billion.

Crypto crash.
Total Market Cap 091122 Daily Chart

It is the largest single-day loss since June 13, when the crypto market slumped by $130.6 billion to $924.0 billion.

The June 13 sell-off came in response to news of DeFi lender Celsius suspending all withdrawals, swaps, and transfers.

This week, leading crypto exchange FTX became the latest victim of the crypto winter. Binance agreed to acquire FTX. Despite the announcement, FTT is down 75.6% to $5.40. FTT had fallen to a low of $2.73 before a partial recovery.

FTT collapse.
FTTUSD 091122 Daily Chart

Contagion fears and fears of increased scrutiny over the digital asset space left investors running for cover, with crypto liquidations spiking throughout the Tuesday session.

Late in the Tuesday session, 24-hour crypto liquidations stood at $854 million, up from $137.65 million on Tuesday morning. At the time of writing, liquidated traders stood at 403,858 versus 72,793 on Tuesday morning.

BTC, ETH, SOL, FTT, DOGE, and BNB saw the largest liquidations.

Crypto liquidations spike.
Crypto Liquidations 091122

SEC Wins Case Against LBRY in Another Blow for the Crypto Space

On Monday, news hit the wires of the SEC winning its case against LBRY. According to the Court findings,

“Because no reasonable trier of fact could reject the SEC’s contention that LBRY offered LBC as a security, and LBRY does not have a triable defense that it lacked fair notice, the SEC is entitled to judgment.”

The filing went on to say,

“The SEC’s Motion for Summary Judgment is granted, and LBRY’s Motion for Summary Judgment is denied.”

On Monday, LBC tumbled by 41.45% to $0.01216 before briefly returning to $0.01727 on Tuesday.

LBC finds modest support post Monday sell-off.
LBCUSD 091122 Daily Chart

Notably, the outcome of the SEC v LBRY case could have a material bearing on the SEC v Ripple case and XRP. There was speculation that the SEC requested an extension in the SEC v Ripple to allow for the LBRY ruling.

With 110 minutes of the Tuesday session remaining (UTC), XRP was down 13.65% to $0.4011.

XRP in deep red.
XRPUSD 091122 Daily Chart

Crypto Market Decouples from the NASDAQ Composite Index

This week’s crypto market news has led to a decoupling from the NASDAQ Composite Index. On Tuesday, the NASDAQ Composite Index rose by 0.49%, following a 0.85% gain on Monday.

Crypto investor sentiment towards the US economy and Fed monetary policy could remain an afterthought for some time.

Regulator response to the latest crypto market event will likely have more market impact.

NASDAQ Decoupling.
NASDAQ – Total Market Cap 091122 Daily Chart

Coinbase Falls Foul of German Regulators

This week, Coinbase (COIN) was in the news.

On Tuesday, the Federal Financial Supervisory Authority of Germany (BaFin) issued a notice, saying,

“An audit of the annual financial statements revealed organizational deficiencies at the institute. The regularity of the business organization was not given in all audited areas.”

The news coincided with reports of users facing network connection issues attributed to high user demand.

Coinbase Support tweeted on Tuesday,

“We’ve implemented a fix and latency has improved dramatically. Due to the high level of new user sign-ups and transfers to Coinbase today, some customers had trouble signing up / experienced delays signing in.”

NASDAQ-listed Coinbase Global (COIN) ended the day down 10.78% to $50.83.

Coinbase shares slide in response to FTX demise.
COIN 091122 Daily Chart

US Mid-Term Elections May Have More Bearing after FTX Collapse

The US Mid-Term elections could have greater significance for the crypto space following the collapse of FTX. US voters went to the polls on Tuesday, with the Senate and the House of Representatives up for grabs. The crypto market preference tilts in favor of a Republican clean sweep.

However, this week’s crypto market events will likely shroud the outcome of the Mid-Term elections.

Binance Set To Buy FTX.com To Cover Liquidity Crunch

Key Insights

  • Binance agreed to acquire FTX which suffered from a liquidity crunch.
  • Crypto markets are under strong pressure as traders fear that FTX problems will lead to margin calls and forced liquidations. 
  • Bitcoin declined back towards the $19000 level. 

Binance Tries To Prevent Another Crisis In The Industry

Crypto markets are in a rollercoaster mode after FTX CEO Sam Bankman-Fried  announced that FTX and Binance had come to an agreement on a strategic transaction. Binance CEO confirmed the deal:

 

Traders should note that the deal does not impact FTX.us and Binance.us, which are separate companies.

A few days ago, Binance announced that it would liquidate the FTT tokens that it received as part of its exit from FTX equity in 2021.

Changpeng Zhao also noted that liquidation of the FTT tokens was proper risk management which took into account the fate of LUNA, which collapsed in May. On November 2,  CoinDesk reported that the balance sheet of Alameda Research, the trading firm of Sam Bankman-Fried, was stretched.

Not surprisingly, Binance’s announcement put significant pressure on FTT. Rumors about the potential FTX liquidity crunch pushed FTT from the $24 level to the recent lows near the $11 level.

Sam Bankman-Fried signaled that there was no conflict between the exchanges, although it’s hard to believe his words given the recent developments:

Crypto Traders Remain Worried About Potential Contagion

Bitcoin moved towards $20600 after Binance confirmed that it would acquire FTX. However, the world’s leading cryptocurrency has quickly lost momentum and eclined below the $19000 level as traders were worried about potential financial contagion from FTX problems.

Other cryptocurrencies have also moved lower. Ethereum settled back below the $1500 level, while Solana tested multi-month lows near $24. FTT remains under huge pressure as traders rush out of the token. Perhaps, some traders have faced margin calls, which have exacerbated the move.

The reaction to the deal will be a big test for crypto markets, which have started to rebound in recent weeks. The stories of LUNA and Celsius Network have done significant damage to the crypto space this year, and Binance’s task is to prevent panic in the next few days.

 

Crypto Market Daily Highlights – SOL Leads the Top 100 Down Again

Key Insights:

  • It was a mixed Monday session for the crypto top ten, with SOL leading the way down while ADA bucked the top ten trend.
  • Bearish sentiment continued from the weekend despite a bullish NASDAQ Composite Index session and a weaker Greenback.
  • The crypto market cap fell by $7.2 billion to end the day at $974.8 billion.

It was a mixed Monday session for the crypto top ten, with SOL leading the way down for a second session. BTC saw red for a second consecutive session. Notably, BTC ended the day at sub-$21,000 for the second time in four sessions.

There were no US economic indicators to influence, leaving investor angst ahead of this week’s US CPI report to test buyer appetite.

By contrast, market sentiment towards the US Mid-Terms delivered NASDAQ Composite Index support. The results of the Mid-Terms are unlikely to affect the crypto market. Bipartisan efforts to roll out a crypto regulatory framework leave the digital asset space in the hands of lawmakers from both sides of the aisle.

On Monday, the NASDAQ Composite Index rose by 0.85%. This morning, the NASDAQ mini was up 11 points.

NASDAQ correlation.
Total Market Cap – NASDAQ – 081122 Daily Chart

Crypto Market Starts the Week on a Bearish Footing

It was a bearish Monday session. The crypto market rose to a high of $1,001 billion before sliding to a low of $959.8 billion.

The bearish session left the crypto market down $7.2 billion to $974.8 billion.

Crypto market falls again.
Total Market Cap 081122 Daily Chart

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

It was a mixed Monday session for the crypto top ten.

ADA bucked the top ten trend, eking out an 0.50% gain.

However, SOL led the way down, tumbling by 9.19%, with DOGE falling by 3.07%.

BNB (-0.44%), BTC (-1.54%), and XRP (-1.15%) also struggled while ETH ended the day flat.

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

Chainlink (LINK) and polygon (MATIC) led the way, rallying by 10.19% and 10.56%, respectively. Toncoin (TON) was also a front-runner, gaining 9.67%.

However, SOL led the way down, with aptos (APT) and arweave (AR) seeing losses of 4.30% and 4.51%, respectively.

24-Hour Crypto Liquidations Inch Higher in Another Bearish Session

Over 24 hours, total liquidations increased for a second consecutive session. At the time of writing, 24-hour liquidations stood at $137.65 million, up from $115.96 million on Monday morning.

Liquidated traders over the last 24 hours also increased. At the time of writing, liquidated traders stood at 72,793 versus 68,885 on Monday morning. However, liquidations were down over one and four hours and over 12 hours.

Crypto liquidations rise.
Total Crypto Liquidations 081122

According to Coinglass, 12-hour liquidations fell from $94.29 million to $77.008 million, with four-hour liquidations down from $68.01 million to $53.96 million. One-hour liquidations decreased from $7.50 million to $1.06 million, reflecting improving market conditions.

The chart below shows market conditions throughout the session.

Crypto market steadies late in the session.
Total Market Cap 081122 Hourly Chart

Crypto Market Daily Highlights – SOL Leads a Broad-Based Sell-Off

Key Insights:

  • It was a bearish Sunday session for the crypto top ten, with SOL leading the way down.
  • A lack of crypto news left investors to lock in profits before the NASDAQ mini added increased selling pressure in the final hour of the day.
  • The crypto market cap slid by $28.3 billion to end the day at $982.0 billion.

It was a bearish Sunday session for the crypto top ten, with SOL leading the way down. BTC saw a three-day winning streak come to an end. Notably, BTC ended the day at sub-$21,000 for the first time in three sessions.

It was a quiet Sunday session, leaving investors to lock in profits from a bullish first week of November. Selling pressure intensified in the final hour, with the NASDAQ mini kicking off the week in negative territory.

On the US economic calendar, it is a quiet Monday session. With no economic indicators for investors to consider, FOMC member chatter will need monitoring. FOMC member Mester speaks late in the session.

We expect the crypto market correlation with the NASDAQ Composite Index to continue this week. The markets will be eying FOMC member chatter for clues on what to expect in December.

NASDAQ correlation.
Total Market Cap – NASDAQ – 071122 Daily Chart

Crypto Market Ends a Bullish Week with a Bearish Session

It was a bearish Sunday session. The crypto market rose to an early high of $1,018 billion before sliding to a final-hour low of $978.5 billion.

The bearish session left the crypto market down $28.3 billion for the day while up $9.6 billion to $982.0 billion for the week.

Crypto market falls back to sub-$1,000 billion.
Total Market Cap 071122 Daily Chart

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

It was a bearish Sunday session for the crypto top ten.

SOL led the way, tumbling by 11.64%, with DOGE sliding by 7.79%.

ADA (-5.63%), BNB (-3.18%), ETH (-3.61%), and XRP (-4.50%) also struggled, while BTC fell by 1.79%.

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

SOL led the way down, with aave (AAVE) and uniswap (UNI) seeing losses of 10.40% and 7.98%, respectively.

Chiliz (CHZ) bucked the broader market trend, rising by 1.70%.

24-Hour Crypto Liquidations Fall Back on Range-Bound Session

Over 24 hours, total liquidations increased, with a bearish end to the session leading to a pickup in liquidations. At the time of writing, 24-hour liquidations stood at $115.96 million, up from $81.40 million on Sunday morning.

Liquidated traders over the last 24 hours also increased. At the time of writing, liquidated traders stood at 68,885 versus 49,950 on Sunday morning. Liquidations were up over one and four hours and over 12 hours.

Crypto liquidations rise.
Total Crypto Liquidations 071122

According to Coinglass, 12-hour liquidations rose from $29.41 million to $94.29 million, with four-hour liquidations up from $3.89 million to $68.01 million. One-hour liquidations increased from $0.415 million to $7.50 million, reflecting bearish market conditions.

The chart below shows market conditions throughout the session.

Crypto market sees sharp final hour pullback.
Total Market Cap 071122 Hourly Chart

Crypto Market Daily Highlights – XRP and SOL Enjoy NASDAQ Support

Key Insights:

  • It was a bullish Friday session for the crypto top ten, with XRP and SOL leading the way.
  • US economic indicators delivered perfect numbers for the NASDAQ Composite Index and the crypto market.
  • The crypto market cap surged by $53.5 billion to end the day at $1,010 billion.

It was a bullish Friday session for the crypto top ten. SOL and XRP led the charge. BTC rose for the second time in six sessions and returned to $21,000 for the first time since October 29.

US economic indicators delivered the NASDAQ Composite Index and the crypto market support. The all-important US jobs report was perfect for riskier assets.

In October, average earnings rose by 4.7% year-over-year versus 5.0% in September, with the unemployment rate up from 3.5% to 3.7%. The unemployment rate rise came despite the participation rate falling from 62.3% to 62.2% and a 261k increase in nonfarm payrolls.

Notably, the earnings figures showed early signs of easing price pressure that could allow the Fed to take its foot off the gas.

In response, the NASDAQ Composite Index ended the day up 1.28%, with the S&P 500 gaining 1.36%.

NASDAQ correlation.
Total Market Cap – NASDAQ – 051122 Daily Chart

Crypto Market Hits $1 Trillion for Second Time Since September 13

It was a bullish Friday session. The crypto market surged from an early low of $953.0 billion to a late high of $1,021 billion before easing back. The US jobs report drove demand for cryptos on hopes that easing wage growth and rising unemployment could allow the Fed to take its foot off the gas.

While coming off the day’s high, the crypto market surged by $53.5 billion to end the day at $1,010 billion. It was only the second visit to $1 trillion since September 13, which coincided with the bearish August US CPI report.

Crypto market cap returns to $1 trillion.
Total Market Cap 051122 Daily Chart

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

It was a bullish Friday session for the crypto top ten.

SOL and XRP led the way, with gains of 9.38% and 11.20%, respectively.

ADA (+8.21%), BNB (+7.62%), BTC (+4.66%), and ETH (+7.43%) also found strong support, while DOGE (+2.83%) trailed.

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

Loopring (LRC) and polygon (MATIC) led the way, rallying by 33.95% and 22.74%, respectively, with chainlink (LINK) up 12.99%.

However, UNUS SED LEO (LEO) and Chain (XCN) bucked the broader market trend, falling by 8.53% and 2.30%, respectively.

24-Hour Crypto Liquidations Spike on US Jobs Report

Over 24 hours, total liquidations jumped in response to the US jobs report that hit ETH short positions. At the time of writing, 24-hour liquidations stood at $254.03 million, up from $87.96 million on Friday morning.

Liquidated traders over the last 24 hours also increased. At the time of writing, liquidated traders stood at 90,998 versus 66,960 on Friday morning. Liquidations were down over one and four hours while up over 12 hours.

Crypto liquidations spike.
Total Crypto Liquidations 051122

According to Coinglass, 12-hour liquidations rose from $42.88 million to $185.40 million. However, four-hour liquidations fell from $16.75 million to $13.58 million, with one-hour liquidations down from $6.86 million to $1.92 million.

The chart below shows market conditions throughout the session.

Crypto market steadies late in the session.
Total Market Cap 051122 Hourly Chart

5 Things to Know in Crypto Today – NASDAQ Composite Delivers $1 Trillion

Key Insights:

  • XRP and the broader crypto market are in rally mode, with the crypto market cap returning to $1 trillion for the second time since September 13.
  • The US jobs report delivered the perfect combination of numbers for the NASDAQ Composite Index and the crypto market.
  • Mainstream players continue the expansion into the crypto space, with MoneyGram and Fidelity in the news.

US Jobs Report Drives Demand for Riskier Assets and a Dollar Slide

On Friday, the all-important US jobs report delivered perfect numbers for the NASDAQ Composite Index and the crypto market.

In October, average earnings rose by 4.7% year-over-year versus 5.0% in September, with the unemployment rate up from 3.5% to 3.7%. The unemployment rate rise came despite the participation rate falling from 62.3% to 62.2% and a 261k increase in nonfarm payrolls.

Notably, the wage growth figures showed early signs of easing price pressure that could allow the Fed to take its foot off the gas.

In response, the NASDAQ Composite Index ended the day up 1.28%, with the S&P 500 gaining 1.36%.

Beyond the US equity markets, the crypto market is up $53.5 billion to $1,010 billion, with 85 minutes (UTC) of the session remaining. The return to $1 trillion is only the second since the US CPI report on September 13.

Crypto market cap returns to $1 trillion.
Total Market Cap 041122 Daily Chart

The probability of a 75-basis point Fed rate hike in December also tumbled alongside the Dollar Spot Index (DXY), which slid by 1.82%.

According to the FedWatch Tool, the probability of a 75-basis point rate hike stands at 38.5%, down from 43.4% one week earlier.

Fed Pivot Bets Rise
FedWatch Tool 041122

Polygon (MATIC) Continues the Charge on News of Instagram NFTs

Today, polygon (MATIC) is up 24.15% to $1.1805 as bullish sentiment allowed investors to respond further to Wednesday’s Instagram news.

On Wednesday, Meta (META) updated a May 2022 announcement, stating,

“Creators will soon be able to make their own digital collectibles on Instagram and sell them to fans, both on and off Instagram.”

The announcement went on to say,

“They’ll have an end-to-end toolkit – from creation (starting on the Polygon blockchain) and showcasing, to selling.”

MATIC hit a day high of $1.1979, its highest level since $1.2455 on April 29.

MATIC on the Instagram journey.
MATICUSD 041122 Daily Chart

XRP Revisits $0.50 on Investor Sentiment Toward the SEC v Ripple Case

Today, XRP is up 9.58% to $0.4985. Notably, XRP revisited $0.50 for the first time since October 14.

While the US jobs report drove demand for riskier assets, XRP and solana (SOL) lead the top ten responses.

Investor optimism toward the SEC v Ripple case supported the return to $0.50. Court rulings in favor of Ripple Labs and executives have provided an XRP price cushion, reflecting investor sentiment toward the SEC v Ripple case. XRP last visited sub-$0.40 on September 21.

XRP has enjoyed an upward, albeit choppy, trend since the early Motions for Summary Judgment filings on September 17.

XRP on the move.
XRPUSD 041122 Daily Chart

Robinhood (HOOD) Faces a New Rival in the Crypto Space

This week, Fidelity Digital Assets reportedly announced zero commission crypto trading on the Fidelity Investments App. Fidelity will also launch a crypto educational program to draw in new crypto investors as signs emerge of a possible end to the crypto winter.

Fidelity’s plans will be a headache for Robinhood (HOOD), which released its Q3 2022 results on Tuesday. According to the press release, cryptocurrency transaction-based revenues fell 12%, while revenues increased for options (10%) and equities (7%).

Payment Platform MoneyGram Enters the Crypto Trading Space

This week, MoneyGram (MGI) announced the introduction of a new crypto service. According to the statement,

“Consumers in the US can now trade and store bitcoin (BTC), ethereum (ETH), and litecoin (LTC) by using the Company’s leading mobile app.”

The news created renewed investor interest in LTC, which has struggled over the crypto winter. Up 8.97% today, LTC is up 22% for the week.

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Crypto Market Daily Highlights – DOGE Hits Reverse in a Mixed Session

Key Insights:

  • It was a mixed Thursday session for the crypto top ten, with (DOGE) seeing red while XRP and BNB found support.
  • US economic indicators fell short of expectations providing broader crypto market support.
  • The crypto market cap increased by $4.6 billion to end the day at $956.2 billion.

It was a mixed Thursday session for the crypto top ten. Dogecoin (DOGE) led the way down, while BNB and XRP found support. BTC ended a four-day losing streak and avoided sub-$20,000 for a ninth consecutive day.

US economic indicators fell short of expectations, delivering crypto market support.

In October, the ISM Non-Manufacturing PMI fell from 56.7 to 54.4. Economists forecast a decline to 55.5. Sub-components of the Index were mixed. The ISM Non-Manufacturing Employment Index fell from 53.0 to 49.1. However, the Prices Index rose from 68.7 to 70.7.

Other stats included the jobless claims and unit labor cost numbers, which were crypto-positive. Unit labor costs rose by 3.5% in Q3, down from 8.9% in Q2, while initial jobless claims slipped from 218k to 217k.

While the numbers delivered crypto market support, the NASDAQ Composite Index fell by 1.73% as investors continued to respond to Fed Chair Powell’s speech.

Later today, the crypto market will face another stern test, with the US jobs report in focus. Better-than-expected numbers would test buyer appetite. This morning, the NASDAQ 100 Mini was down 12.75 points.

NASDAQ correlation.
Total Market Cap – NASDAQ – 041122 Daily Chart

Crypto Market Finds Support on Weak US Economic Indicators

It was a choppy Thursday session, with the crypto market falling to an early low of $944.0 billion before rising to a late morning high of $974.4 billion. However, a late-morning pullback saw the market cap fall to $952.3 billion before investors responded to the ISM Non-Manufacturing PMI. The crypto market cap returned to $966.1 billion before easing back.

Despite the late pullback, the crypto market rose by $4.6 billion to end the day at $956.2 billion.

Crypto market rises on weak US stats.
Total Market Cap 041122 Daily Chart

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

It was a mixed Thursday session for the crypto top ten.

DOGE fell by 3.95% to buck the top ten trend.

However, it was a bullish session for the rest of the top ten.

BNB rose by 2.94% to lead the way. ADA (+1.04%), BTC (+0.29%), ETH (+0.84%), SOL (+0.14%), and XRP (+1.06%) also found support.

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

Arweave (AR) led the way, surging by 29.75%, with OKB (OKB) and fantom (FTM) seeing gains of 24.66% and 16.89%, respectively.

However, DOGE led the way down, with FTX token (FTT) and huobi token (HT) seeing losses of 2.63% and 2.93%, respectively.

24-Hour Crypto Liquidations Ease on US Data Miss

Over 24 hours, total liquidations fell back as the market responded to softer PMI numbers from the US. At the time of writing, 24-hour liquidations stood at $87.96 million, down from $179.41 million on Thursday morning.

Liquidated traders over the last 24 hours also decreased. At the time of writing, liquidated traders stood at 66,960 versus 80,732 on Thursday morning. Liquidations were down over 12 and four hours while up over one hour.

Crypto market liquidations ease.
Total Crypto Liquidations 041122

According to Coinglass, 12-hour liquidations fell from $109.83 million to $42.88 million, with four-hour liquidations down from $39.81 million to $16.75 million. One-hour liquidations increased from $1.83 million to $6.86 million.

The chart below shows market conditions throughout the session.

Crypto market sees bearish turn of the day.
Total Market Cap 041122 Hourly Chart