Crypto.com Calls South Korea an “Important Market,” Gets Regulatory Nod

Key Insights:

  • Crypto.com has secured digital assets service provider license from South Korea.
  • The crypto platform announced acquisitions of PnLink Co. and OK-BIT Co.
  • South Korea is one of the most crypto-active countries, with users of around 5.58 million or 10% of the population.

Crypto.com has announced the completion of two key registrations in South Korea, a move it believes could recover the crypto market’s nosedive.

The cryptocurrency platform has secured the country’s Electronic Financial Transaction Act and Virtual Asset Service Provider (VASP) registration in what it calls an “important market.”

The Electronic Financial Transaction Act aims to ensure the safety and reliability of all e-financial transactions. It sets a high regulatory bar, and the approval reflects the nation’s stringent anti-money laundering rules.

Additionally, in December 2021, the Korea Financial Intelligence Unit (KFIU) made it mandatory for all VASPs to register their business to provide crypto services targeting Koreans.

Two Significant Acquisitions

The registration comes after Crypto.com, with the native token Cronos (CRO), announced securing two Korean-based firms – payment service provider ‘PnLink Co. Ltd.’ and virtual asset service provider ‘OK-BIT Co. Ltd.

The company noted the acquisition as “another key regulatory milestone,” following its recent in-principle approval from the Monetary Authority of Singapore and virtual asset license (provisional approval) from the Dubai Virtual Assets Regulatory Authority (VARA).

Announced during the Korea Blockchain Week 2022, which kickstarted Sunday in the capital city of Seoul, Eric Anziani, the COO of Crypto.com, discussed the company’s plans for South Korea after securing payment and crypto registrations.

According to Kris Marszalek, co-founder, and CEO of Crypto.com, this is a critical move in an “important market” like South Korea, one of the most crypto-active countries in Asia.

“We are committed to working with regulators to continue to bring our products and services to market, particularly in countries like South Korea where consumers have shown strong interest and adoption of digital currencies.”

The company is also eyeing to further its Web3 ecosystem and advance blockchain technology, Patrick Yoon, general manager for the South Korean arm of Crypto.com, noted.

Furthermore, Anziani told Bloomberg that the company is working with partners in South Korea who are at the forefront of gaming and entertainment.

South Korea Recovers After Terra’s Blow

The algorithmic stablecoin Terra (LUNA) ecosystem’s rise and fall has taken a toll on the entire crypto space globally, particularly in South Korea, the birthplace of its creator – Do Kwon.

Kwon faced legal troubles in South Korea, following which the country’s ruling party announced the launch of a new Digital Asset Committee to oversee the crypto industry in the country.

The nation has thus joined jurisdictions worldwide in pushing for more crypto oversight following TerraUSD (UST) collapse.

Since then, South Korea has made efforts to ensure that investors in cryptos and stablecoins are better protected.

According to a study in March by the Financial Service Commission, South Korea’s crypto assets market has grown multifold – to 55.2 trillion won ($45.9 billion) as of end-2021, and the number of Korean users amounting to nearly 5.58 million or 10% of the population.

This is why crypto firms and service providers flock to South Korea, which has high crypto-friendly rules. Additionally, the country has postponed its plans to tax crypto earnings to 2025, making the environment more conducive to crypto players.

Will the Crypto Winter Thaw in the Second Half of 2022?

Key Insights:

  • The collapse of Terra, 3AC, and insolvency crisis across crypto institutions has created severe bear conditions in Q2.
  • Experts predict prolonged crypto winter in the second half of 2022.
  • Bitcoin saw a quarter-to-quarter loss of over 57%, and ether lost over 67%.

The cryptocurrency market has had a roller coaster ride this year, with signs of liquidity crunch and even insolvency. After raising phenomenally in 2021, bitcoin (BTC), ether (ETH), and other significant cryptos started to plummet.

The $2 trillion crypto market crash wiped out investor gains and obliterated once staple cryptocurrencies. For instance, Terra’s (LUNA) collapse is one of the primary drivers of the crypto market dive. The algorithmic stablecoin lost all of its value following TerraUSD (UST) collapse in May.

Another major driver is the centralized-finance lender Celsius, which offered users yields of more than 18% for depositing their cryptos. The firm paused withdrawals for customers in June.

Market participants are calling the current turmoil a “crypto winter.” To start with, crypto winter is the term used when there is a rapid and prolonged decrease in crypto values. Prices can remain depressed for many months, falling as much as 50-90%. It has been a difficult phase for crypto investors, who are anxious to know how long this uncomfortable period can last and how to survive the frosty crypto markets.

“If Winter Comes, Can Spring Be Far Behind?”

The current phase could be challenging for holders; nonetheless, this is not the first time the market is witnessing such high volatility. Between 2018 and 2020, bitcoin lost nearly half its market value but came back stronger in November 2021, reaching its all-time high.

The latest monetary policy decision from the Fed on Wednesday has had little impact on the bitcoin price. As the Federal Reserve continues to curb stubborn inflation, the central bank raised interest rates by 0.75%, the fourth consecutive increase this year alone.

Soon after the announcement, experts largely predicted that investors should expect new volatility this week. At the start, sentiment in the crypto market appeared slightly bearish, though prices showed signs of going uphill.

Bitcoin was trading above $23,000, and ethereum was trading above $1,700 as of Thursday, both up by over 10%.

Edward Moya, a senior market analyst at Oanda, told the Time publication,

“The FOMC decision provided optimism that the end of tightening is in sight, and that triggered a nice rally for risky assets that helped elevate cryptos.”

Q3 & Q4, 2022: A Ray of Hope for Crypto Investors?

According to Moya, crypto investors are keeping a close eye on the price of bitcoin, ethereum, and other cryptos to see if there is any “possible retest of the June lows.”

However, despite the positive momentum last week, it is no where close to the highs it reached last year. Looking into the crypto’s history of volatility, it is not clear when the market turbulence will settle.

Few market experts predict that there could be more pain in the second half of this year as crypto companies struggle to pay their debts and process customer withdrawals.

For instance, Tom Loverro, a former Coinbase Board member, has shared his predictions on crypto winter in his series of Twitter threads. According to him, the present phase could fall even lower in 2022.

He noted that the pandemic largely drove the 2020 bear market, and the current crypto winter isn’t similar to the 2020 fall. He further said,

“So, these investors will suffer until rates stabilize.”

Loverro advises investors to have enough cash to get through the next 30–36 months. He said, “crypto will come back bigger than ever.”

In an interview with FX Empire, Dora Yue, founder of crypto firm OKEx, said that after this “aggressive round of forced selling and deleveraging,” there are many reasons for investors to remain optimistic, such as:

  • The market has deleveraged, and stablecoin debt utilization has returned to a relatively reasonable level.
  • Asset prices have started to rebound from their lows, especially for Defi.
  • Valuations in the primary market are slowly returning to sanity.
  • Business models and startups will mature more as they go through the market cycle again.

As Q3 of 2022 begins, it wouldn’t be pleasant for bitcoin, given the baby steps that cryptos take to recover. As reported by FXEmpire, bitcoin saw a quarter-to-quarter loss of over 57%, while ether dropped by more than 67% over the same time.

Per Nomura, a Japanese financial services behemoth, major economies could see a recession “‘in the next 12 months amid tightening government policies and higher costs.” The words sent a chill down investors’ spines, expecting hard times in the near future.

IMF Says Crypto Crash Hasn’t Hit Broader Financial Market

Key Insights:

  • The IMF has shared its outlook on the global economy in light of surging inflation and continued global supply chain disruptions. 
  • The report stated that the crypto sell-off has not harmed the broader financial system.
  • IMF Chief Kristalina Georgieva urged investors earlier this year not to abandon the crypto market. 

The International Monetary Fund (IMF), a specialised agency that facilitates international trade and secures the stability of the global monetary system, has spoken out about recent crypto market turbulence.

The Washington-based institution, which has become notorious for flagging the significant financial risks associated with cryptocurrencies, stated that despite a “dramatic” sell-off, spillovers to the “broader financial system” have been avoided.

Global Financial Stability

In its new report entitled ‘World Economic Outlook Update: Gloomy and More Uncertain’, the IMF provides a projection for the global economy in light of surging inflation, Russia’s war on Ukraine and continued global supply chain disruptions.

Despite the recent crypto crash erasing more than $2 trillion in value from the market and wiping out nearly $40 billion in investors’ capital, the IMF recognised that its impact on global financial stability has been “limited so far”.

The report acknowledged that the crypto sell-off led to “large losses in crypto
investment vehicles” and “caused the failure of algorithmic stablecoins and crypto hedge funds” but according to the IMF, this has not harmed the broader financial system.

Terra Collapse

This comes after the managing director of the IMF, Kristalina Georgieva urged investors earlier this year not to abandon the crypto market despite Terra’s crash which was led by the algorithmic stablecoin UST losing its peg to the U.S. dollar.

Terra went from being valued at more than $50 billion to collapsing into a state of disrepair in the span of a week and this set off a chain reaction that erased more than $2 trillion from the overall value of the cryptocurrency market. In addition, the world’s largest cryptocurrency, Bitcoin (BTC) fell below $20,000 – its lowest level since December 2020.

Georgieva stated: “I would beg you not to pull out of the importance of this world. It offers us all faster service, much lower costs and more inclusion”. She added that it’s the responsibility of regulators worldwide to put up guardrails and offer education to protect investors.

In its report, the IMF also cut global growth projections for 2022 and 2023, labelling the world’s economic outlook as “gloomy and more uncertain”. As such, the agency now expects the world economy to grow 3.2% this year, before slowing further to a 2.9%  gross domestic product (GDP) rate in 2023. The amendments represent a decrease of 0.4 and 0.7 percentage points, respectively, from previous predictions.

The IMF attributed this outlook to challenges stemming from soaring global inflation, a worse-than-expected slowdown in China and the ongoing fallout from the war in Ukraine.

Optimism Price Prediction: Will OP Rebound?

Key Insights:

  • The OP token has fallen by over 11% in the last 24 hours. 
  • Short-term sentiment on OP is bearish. 
  • The coin remains over 83% below its all-time high price set in May this year. 

OP, the native token of the Optimism ecosystem that gives users participation rights to the two-tier governance system, has fallen by over 11% in the last 24 hours.

Despite the coin reaching the $0.9 mark on July 23, OP has plummeted to $0.7539 today – a 21% drop in just three days.

Optimism (OP) is a Layer 2 protocol and smart contract platform that aims to enable low-cost and near-instantaneous transactions. The OP cryptocurrency powers the Token House which governs network parameters, treasury disbursements and protocol upgrades.

Price Action

The OP token started its journey at $0.9199 on May 31, 2022. Interestingly, the coin reached its all-time high (ATH) price that same day at $4.57. OP quickly surged to the $1 mark, reaching $1.8481 on June 1.

As the crypto market crashed, OP’s price retreated, dropping to $0.7284 on June 9 and falling even further to $0.5045 by June 13.

 

OP weekly price chart
OP 260722 Weekly Price Chart

During this month, the entire crypto space was still reeling from Terra’s collapse – a project that went from being valued at more than $50 billion to collapsing into a state of disrepair in the span of a week. More specifically, when the algorithmic stablecoin UST lost its peg to the U.S. dollar and the price of LUNA dropped 98%, it fuelled a slump across cryptocurrencies.

As such, OP fell to its all-time low of $0.4005 on June 18. Following this, the token stagnated and stayed within the $0.4-$0.5 range until this month when it climbed to $0.6316 on July 18. Another brief rally saw OP rise to $0.9388 on July 23 when its market capitalisation registered a 59% increase from $124.98 million to $199.71 million in seven days.

However, the coin is currently at trading at $0.753852 and is down 11.38% in the last 24 hours. OP ranks 2765th in the list of cryptocurrencies worldwide by market capitalisation at $164 million and remains over 83% below its all-time high price recorded in May this year.

 

OP daily price chart
OP 260722 Daily Price Chart

Technical Indicators

Technical analysis shows that short-term sentiment on OP is bearish, with 6 indicators displaying bullish signals compared to 12 bearish signals at the time of writing.

The daily simple and exponential moving averages (EMA) are giving a combination of buy and sell signals, while the relative strength index (RSI) stands at 58.

An RSI reading of 30 or below indicates an oversold or undervalued condition, while a reading above 70 would suggest the asset is becoming overvalued or overbought.

In terms of an Optimism crypto price prediction, OP could see its price rising to $0.8070 by August 2022, falling to $0.0236 in January 2024 and reaching $0.0244 by January 2025.

Crypto Market Daily Highlights – ETH Bucks Trend in Bullish Session

Key Insights:

  • On Tuesday, the crypto top ten were on the move again, with Cardano (ADA) taking over as the front runner.
  • A choppy start to the session saw the crypto market hit reverse before recovering, with the NASDAQ 100 delivering a US session boost.
  • The total crypto market cap followed Monday’s $82.59 billion jump with a $46 billion increase to cement the return to $1 trillion.

It was a bullish Tuesday session for the crypto top ten. Bitcoin (BTC) hit $23,000, briefly eyeing $24,000, with Cardano (ADA) enjoying a breakout session.

Recovering from a bearish start to the Tuesday session, risk-on sentiment from the global equity markets delivered much-needed support.

The European and US equity markets were in rally mode, delivering the crypto boost.

On Tuesday, the NASDAQ 100 rallied by 3.11%, with the futures pointing to more gains in the day ahead.

At the time of writing, the NASDAQ 100 Mini was up 32 points.

Crypto - NASDAQ
Total Market Cap – NASDAQ – 200722 5 Min Chart

While the European and US equity markets provided support, investor sentiment towards the Ethereum Merge and the Cardano (ADA) Vasil hard fork remained the key drivers.

Following several delays, the Vasil hard fork and the Merge look set for July and September, shifting the mood across the crypto market.

The Total Crypto Market Cap Continued the Gradual Climb to $2 Trillion

A choppy Tuesday session saw the total crypto market cap fall to a low of $981 billion before rising to a high of $1,050 billion.

Finding initial support from the European and US equity markets, Ethereum Merge euphoria continued to drive the market northwards in the post-US market close session.

On Tuesday, the total crypto market cap followed Monday’s $82.59 billion surge with a $46 billion increase to wrap up the day at $1 trillion for a second consecutive day.

Notable moves across the crypto top ten were a bitcoin return to $23,000 and an Ethereum look at $1,700. Despite the Merge euphoria, ETH ended the day in the red.

Crypto market cap
Total Market Cap 200722 Daily Chart

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

ADA rallied by 5.31% to lead the top ten, with BTC (+4.25%) and SOL (+3.07%) finding strong support.

While BNB (+1.70%), DOGE (+2.10%), and XRP (+2.14%) avoided the red, ETH (-2.45%) succumbed to late profit taking to end the day in the red.

From the CoinMarketCap top 100, Nexo (NEXO) led the way, surging by 21.88%. Fantom (FTM) and NEM (XEM) were close behind, with gains of 14.97% and 15.53%, respectively.

However, Arweave (AR) struggled, with a 6.12% loss. UNUS SED LEO (LEO), STEPN (GMT), TerraClassicUSD (USTC), and Polygon (MATIC) also saw red.

Total Crypto Liquidations Fall to Reflect Improved Market Conditions

On Wednesday, 24-hour liquidations eased, pointing to more favorable market conditions. Despite the fall in liquidations, 24-hour liquidations remained elevated relative to more recent levels.

This morning, 24-hour liquidations stood at $582 million, down from $691 million on Tuesday.

Liquidated traders also eased over the last 24 hours, suggesting improving market conditions. At the time of writing, liquidated traders stood at 104,735 versus 128,281 on Tuesday morning.

While 24-hour liquidation levels stood on the higher side, one-hour and four-hour liquidations saw a sharp decline relative to Tuesday morning levels.

According to Coinglass, one-hour liquidations stood at $2.84 million, down from $161.66 million on Tuesday. Four-hour liquidations stood at $45.66 million.

Crypto liquidations
Total Crypto Liquidations 200722

Daily News Highlights

  • Beleaguered crypto platform Celsius received court approval to spend $3.7 million on a new bitcoin mining facility and $1.5 million on customs and excise duties on rigs.
  • Stablecoin issuer Circle talked about crypto regulations.
  • FBI issued a warning over bogus crypto apps.
  • Crypto.com and Trade Republic announced regulatory approvals in Italy.

Crypto Market Daily Highlights – ETH on the Move towards $1,500

Key Insights:

  • On Saturday, the crypto top ten extended the winning streak to four sessions, with Ethereum (ETH) leading the way for a third session.
  • News updates on the Merge delivered ETH with a breakout session, while market hopes of a 75 basis point Fed rate hike continued to drive investor appetite.
  • The total crypto market cap rose by $31.5 billion.

It was a bullish Saturday session for the crypto top ten. Bitcoin (BTC) rose for a fourth consecutive day, with ETH touching $1,400 for the first time since June 13.

There were no speeches from FOMC members to provide direction, with members entering the blackout period, which extends from July 16 to July 28.

From Friday, the talk of a 75-basis point continued to resonate, delivering the upside on the day. FOMC members Bostic and Bullard spoke of a 75-basis point hike this month, easing fears of a 100-basis point hike.

With the US equity markets entering the earnings season, the crypto market will be looking to decouple from the NASDAQ 100. However, sentiment toward Fed monetary policy and the economic outlook will likely leave the two interlinked.

Crypto - NASDAQ
Crypto – NASDAQ – 170722 Daily Chart

The Total Crypto Market Cap Rises for a Fourth Consecutive Session

A bearish start to the Saturday session saw the crypto market cap fall to a day low of $897 billion before finding support. A breakout session, supported by further investor reaction to the US retail sales figures and Fed chatter led to a high of $965 billion before easing back.

Despite a late pullback, investors poured $31.5 billion back into the market to take the crypto market cap up $80 billion for July.

Crypto market cap
Total Market Cap 170722 Daily Chart

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

ETH rallied by 10.12% to lead the way, with BNB (+4.70%), SOL (+5.95%), and XRP (+5.01%) also making solid gains.

ADA (+3.62%), BTC (+ 1.79%), and DOGE (+2.34%) trailed the front runners.

From the CoinMarketCap top 100, Lido DAO (LDO) led the way, surging by 22%, supported by the ETH breakout.

Progress towards the ETH Merge remained the key driver for LDO, with Ether staking on the rise.

Several coins bucked the broader market trend, however. Convex Finance (CVX) and TerraClassicUSD (USTC) fell by 3.90% and by 3.60%, respectively, with Quant (QNT) seeing a 1.55% loss.

Total Crypto Liquidations Spike Despite Bullish Sentiment

On Sunday, 24-hour liquidations jumped at the turn of the day, despite a bullish start to the Sunday session.

This morning, 24-hour liquidations stood at $372.31 million, up from $144 million on Saturday.

Liquidated traders surged over the last 24 hours, suggesting a possible deterioration in market conditions. At the time of writing, liquidated traders stood at 63,031 versus 47,290 on Saturday morning.

Significantly, 12-hour liquidations surged to $344 million, driving four-hour and one-hour liquidations northwards.

According to Coinglass, one-hour liquidations stood at $31.6 million, up from $0.924 million on Saturday.

Crypto liquidations
Total Crypto Liquidations 170722

Daily News Highlights

  • Rumors of Coinbase having liquidity issues hit the news wires, with Coinbase reportedly ceasing its affiliate program.
  • Ethereum continued its breakout session, supported by the talk of a September Merge date.

Crypto Market Daily Highlights – BTC Extends Winning Streak

Key Insights:

  • On Friday, the crypto top ten extended the winning streak to three sessions, with Ethereum (ETH) leading the way for a second session.
  • Better than expected US retail sales figures and talk of a 75-basis point rate hike supported riskier assets, with the NASDAQ 100 delivering the broader crypto market direction.
  • The total crypto market cap rose by $11.5 billion.

It was a bullish Friday session for the crypto top ten. Bitcoin (BTC) rose for a third consecutive day, with ETH continuing its move toward $1,500.

The markets moved away from the recent US inflation figures and focused on the US economy on Friday.

Retail sales figures for June beat expectations but were not hot enough to fuel fear of a 100-basis point hike later this month.

Month-on-month, retail sales increased by 1.0% versus a forecasted 0.8%. Core retail sales also increased by 1.0% versus a forecasted 0.6%.

FOMC member chatter also drew attention, with members Bostic and Bullard easing fears of a 100-basis point move.

According to Reuters, James Bullard spoke of indifference on “whether the Fed approves a 0.75 percentage-point rate increase this month, as policymakers have flagged, or boosts that to a full percentage point.”

Atlanta Fed President Raphael Bostic reportedly delivered a more tempered view, cautioning against any dramatic moves that may impact hiring and other positive trends still evident in the economy.

The crypto news wires had a muted impact on the broader market, with the NASDAQ 100 guiding the crypto market. On Friday, the NASDAQ 100 rose by 1.79%.

The Total Crypto Market Cap Rises for a Third Consecutive Session

A bearish start to the Friday session saw the crypto market cap fall to a day low of $896 billion before finding support. Investor reaction to the US retail sales figures and Fed chatter led to a high of $932 billion before easing back.

Despite a late pullback, investors poured $11.5 billion back into the market to take the crypto market cap up $47 billion for July.

Crypto market cap
Total Market Cap 160722 Daily Chart

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

ETH rallied by 3.22% to lead the way, with BTC rising by 1.21%.

ADA (+0.23%), BNB (+0.04%), DOGE (+0.79%), SOL (+0.65%), and XRP (+0.12%) trailed the front runners.

From the CoinMarketCap top 100, TerraClassicUSD (USTC) and Lido DAO (LDO) led the way, surging by 37% and 23%, respectively.

Progress towards the ETH Merge remained the key driver for LDO. According to Dune Analytics, staking Ether was on the rise.

ETH Staked on LIDO
ETH Staked with Lido

Several coins bucked the broader market trend, however. Synthetix (SNX), Nexo (NEXO), and Curve DAO Token (CRV) led the way down. NEXO slid by 6.6%, with SNX and CRV falling by 5.8% and 5.1%, respectively.

Total Crypto Liquidations Continued Downward Trend

On Friday, 24-hour liquidations eased further back as the crypto market responded to US economic indicators and Fed chatter.

This morning, 24-hour liquidations stood at $144 million, down from $180 million on Friday.

Liquidated traders over the last 24 hours declined to reflect improving market conditions. At the time of writing, liquidated traders stood at 47,290 versus 51,568 on Friday morning.

Significantly, one-hour liquidations fell to sub-$1 million going into the weekend session.

According to Coinglass, one-hour liquidations stood at $0.924 million, down from $2.41 million on Friday and $7.12 million on Thursday.

Crypto liquidations
Total Crypto Liquidations 160722

Daily News Highlights

  • SEC mulled waiving some crypto regulations.
  • Fed Survey showed crypto products and services and blockchain tech low priority for bank growth and development strategies for two-thirds of respondents.

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.

Crypto Market Daily Highlights – ETH and SOL Led the Top Ten

Key Insights:

  • It was a bullish session for the crypto top ten, with Ethereum (ETH) and Solana (SOL) leading the way.
  • After plenty of market angst over US inflation, the crypto market bounced back from day lows despite the US annual rate of inflation hitting 9.1%.
  • The total crypto market cap rose by $38 billion to end a three-day losing streak.

It was a bullish Tuesday session for the crypto top ten. Bitcoin (BTC) ended a five-day losing streak, with ETH and SOL leading the top ten.

US inflation figures sent the crypto market into the deep red before a broad-based crypto rally kicked in.

In June, the US annual rate of inflation accelerated from 8.6% to 9.1% versus a forecasted 8.8%. While the latest spike may force the Fed into a 75-basis point rate hike this month, retail sales figures tomorrow could bring a 50-basis point rate hike back into play.

This month, the FOMC meeting minutes revealed concerns over the effect of rate hikes on the US economy. The minutes also showed that members considered a 50-basis point rate hike more appropriate.

Through the US session, the broader crypto market tracked the NASDAQ before a post-US market close rally.

On Wednesday, the NASDAQ 100 fell by 0.15%, following a Tuesday 0.95% loss.

Crypto - NASDAQ
Total Market Cap – NASDAQ – 140722 5 Min Chart

At the time of writing, the NASDAQ 100 Mini was down 70.5 points, with the markets now looking ahead to the US wholesale inflation and jobless claims figures.

The Total Crypto Market Cap Bounces Back Despite NASDAQ Loss

A choppy Wednesday session led the crypto market cap to a day low of $824 billion before finding support. Investor reaction to the US inflation figures weighed before a rebound to a high of $884 billion.

Investors poured $38 billion back into the market to take the crypto market cap up $14 billion for July.

Crypto market cap
Total Market Cap 140722 Daily Chart

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

ETH and SOL led the way, rallying by 7.42 and 6.90%, respectively.

ADA (+5.04%), BNB (+4.54%), and BTC (+4.77%) also found strong support, while XRP (+3.95%) and DOGE (+3.58%) trailed the front runners.

From the CoinMarketCap top 100, TerraClassicUSD (USTC), Amp (AMP), and Internet Computer (ICP) were among a handful of cryptos to buck the trend.

USTC slid by 11.13%, with AMP and ICP seeing losses of 5.94% and 3.38%, respectively.

However, leading the top 100 was Lido DAO (LDO), which surged by 51%, with Convex Finance (CVX) up 19.5%.

Total Crypto Liquidations Spike in Response to US Inflation

On Wednesday, 24-hour liquidations increased as investors responded to US inflation figures.

This morning, 24-hour liquidations stood at $230 million, up from $175 million on Wednesday.

Liquidated traders over the last 24 hours also increased. At the time of writing, liquidated traders stood at 72,955 versus 54,212 on Wednesday.

However, one-hour and Four-hour liquidations reflected improving market conditions at the turn of the day.

According to Coinglass, one-hour liquidations stood at $7.12 million, down from $4.69 million on Wednesday. Four-hour liquidations stood $13.28 million, down from $89 million on Wednesday.

Crypto liquidations
Total Crypto Liquidations 140722

Daily News Highlights

  • California Department of Financial Protection and innovation announced investigations into multiple US-based crypto platforms.
  • Hackers stole $8 million worth of ETH from Uniswap (UNI) phishing attack.
  • The judge presiding over the SEC v Ripple case denied the SEC motion to protect the Hinman speech-related documents under the attorney-client privilege.

Crypto Market Daily Highlights – Bitcoin Extends Losing Streak to Five

Key Insights:

  • It was another bearish session for the crypto top ten, with Ethereum (ETH) leading the way down.
  • Bearish sentiment from the US equity markets continued to spill over to the crypto market, which tracked the NASDAQ 100 into the red.
  • The total crypto market cap slid by a further $25 billion to record a third consecutive daily fall.

It was a bearish Tuesday session for the crypto top ten. Bitcoin (BTC) fell for a fifth consecutive day, while ETH led the way down.

There were no economic indicators from the US for the crypto market to consider. With the crypto news wires having a muted impact on bitcoin and the broader market, market risk sentiment delivered direction on the day.

Investor apprehension ahead of US inflation figures due later today continued to test support.

On Tuesday, the NASDAQ 100 fell by 0.95%, following a 2.26% loss on Monday.

Crypto - NASDAQ
Total Market Cap – NASDAQ – 130722 5 Min Chart

At the time of writing, the NASDAQ 100 Mini was down 4.5 points, with the markets now looking ahead to the US inflation figures that could dictate the size of the next Fed rate hike.

The Total Crypto Market Cap Slides to Sub-$850bn

A bearish Tuesday session led the crypto market cap to a day low of $839 billion before ending the day at $842 billion. A third consecutive day in the red saw another $25 billion come off the table.

Crypto market cap
Total Market Cap 130722 Daily Chart

For July, the total market cap was down $24 billion, with the crypto market facing a fourth consecutive monthly decline.

While a likely shift in the crypto regulatory landscape and the SEC v Ripple case remain crypto drivers, investor sentiment towards the economic outlook and Fed monetary policy continue to influence.

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

ETH slid by 5.31% to lead the way down, with ADA (-3.92%), BTC (-3.18%), and DOGE (-3.18%) also struggling.

BNB (-2.26%), SOL (-2.19%), and XRP (-1.14%) saw relatively modest losses.

From the CoinMarketCap top 100, Quant (QNT) and Huobi Token (HT) were among a handful of cryptos to buck the trend.

QNT and HT rose by 0.92% and by 0.56%, respectively.

However, TerraClassicUSD (USTC) slid by 12.7% to lead the way down, with Tezos (XTZ) falling by 8.8%.

Total Crypto Liquidations Remained Elevated on Tuesday

24-hour liquidations remained on the higher side through Tuesday, reflecting the bearish crypto session.

This morning, 24-hour liquidations stood at $175 billion, down from $177 billion on Tuesday while up from $111 billion on Monday.

Liquidated traders over the last 24 hours eased. At the time of writing, liquidated traders stood at 54,212 versus 69,448 on Tuesday.

Four-hour liquidations reflected a sharp increase in liquidations, while one-hour liquidations reflected improving market conditions at the turn of the day.

According to Coinglass, one-hour liquidations stood at $4.69 million, down from $13.81 million on Tuesday. Four-hour liquidations stood at $89 million.

Crypto liquidations
Total Crypto Liquidations 130722

Daily News Highlights

  • G20 announced plans to propose a robust crypto regulatory framework by October.
  • The Central Bank of Russia talked about the digital Ruble and the risks associated with private stablecoins.
  • US Treasury sought input on risks and opportunities linked to cryptos.
  • The SEC delayed a decision on bitcoin ETF requests after a string of rejections.

Crypto Market Daily Highlights – BNB and XRP Hit Reverse

Key Insights:

  • It was a bearish end of the week for the crypto top ten, with XRP leading the way down.
  • Following a relatively range-bound Saturday, market uncertainty weighed ahead of several key economic indicators due this week.
  • The total crypto market cap slid by $29 billion to record the third decline in nine sessions.

It was a bearish Sunday session for the crypto top ten. Bitcoin (BTC) fell for a third consecutive day, with XRP leading the way down.

Following the Fed meeting minutes and US nonfarm payrolls, the market focus shifts to US inflation figures this week.

With the numbers due out on Wednesday, another spike could reignite fears of a 75 basis point Fed rate hike and a US recession.

Last week, the FOMC meeting minutes highlighted member concerns over the possible impact of rate hikes on the US economy. The uncertainty over Fed monetary policy and the economic outlook likely contributed to some profit-taking.

Through the early part of this week, we expect the crypto market to take its cues from the NASDAQ 100, with no decoupling likely near term.

Crypto - NASDAQ
Crypto – NASDAQ – 110722 Daily Chart

At the time of writing, the NASDAQ 100 Mini was down by 38 points.

The Total Crypto Market Cap Revisits Sub-$900bn

The bearish Sunday session saw the crypto market cap fall from a high of $935.7 billion to a low of $895.8 billion.

While late support limited the damage, the total market cap slid by $28.9 billion to $905.2 billion.

Crypto market cap
Total Market Cap 110722 Daily Chart

The Sunday pullback left the market cap up by $54 billion for the week ending July 10.

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

XRP  slid by 5.66%, with ETH seeing a 4.04% loss.

ADA (-3.35%), BNB (-3.62%), BTC (-3.41%), DOGE (-3.18%), , and SOL (-3.53%) also saw heavy losses.

From the CoinMarketCap top 100, TerraClassicUSD (USTC) led the way, rising by 4.04%.

IOTA ( MIOTA), Monero (XMR), Amp (AMP), Chiliz (CHZ), and Tezos (XTZ) also bucked the broader market trend.

Leading the way down, however, was Internet Computer (ICP) and THORChain (RUNE), which slid by 8.7% and 8.9%, respectively.

Total Crypto Liquidations Reflect Improving Market Conditions

24-hour liquidations increased through Sunday, reflecting the bearish crypto session.

This morning, 24-hour liquidations stood at $111 billion, up from $59.5 million on Sunday morning.

Liquidated traders over the last 24 hours increased. At the time of writing, liquidated traders stood at 39,241 versus 23,346 on Sunday.

However, four-hour and One-hour liquidations reflected improving market conditions.

According to Coinglass, one-hour liquidations stood at $0.586 million, down from $1.60 million on Sunday.

Crypto liquidations
Total Crypto Liquidations 110722

Daily News Highlights

  • In the second quarter, crypto ATM installation growth slowed dramatically.
  • Polygon (MATIC) CEO Ryan Wyatt talked of Terra-based projects migrating to the Polygon network.

Crypto Market Daily Highlights – ADA and DOGE Struggle

Key Insights:

  • It was a choppy Friday for the crypto top ten, with Ethereum (ETH) and Solana (SOL) struggling.
  • Investor reaction towards the US nonfarm payroll figures tested buying appetite, with bitcoin failing to hold onto the $22,000 handle.
  • The total crypto market cap declined by $6.8 billion to record the second fall in seven sessions.

It was a bearish Friday session for the crypto top ten. Bitcoin (BTC) ended the day flat, while SOL and ETH struggled.

Fears of a recession eased, with US nonfarm payroll figures highlighting another surge in hiring. In June, nonfarm payrolls increased by 372k, following a 384k jump in May.

However, the sharp increase in hiring also raised concerns that the Fed may hike rates more aggressively this month. Sentiment shifted despite the less hawkish FOMC meeting minutes.

On Wednesday, the FOMC meeting minutes highlighted the risk of rate hikes having a ‘larger-than-expected effect on economic growth.’ Prior to the minutes, the markets had priced in a 75 basis point rate hike for July. However, the minutes revealed that participants judged a 50 or 75 basis point increase as appropriate.

The nonfarm payroll numbers could allow the Fed to deliver another 75 basis point rate hike before taking the foot off the gas.

In response to the NFP numbers, the NASDAQ 100 hit reverse before finding late support to eke out a 0.12% gain. The crypto market tracked the NASDAQ throughout the day before a post-US market close pullback.

Crypto - NASDAQ
Total Market Cap – NASDAQ – 090722 5 Min Chart

The Total Crypto Market Cap Sees Modest Decline

A bullish start to the Friday session saw the crypto market cap strike a high of $962 billion.

In response to the NFP numbers, the market cap slid to a low of $916 billion before wrapping up the day at $930 billion.

Crypto market cap
Total Market Cap 090722 Daily Chart

NASDAQ 100 support was again the key, though the $1 trillion mark remained elusive.

Despite the NFP figures, the threat of a global economic recession remained. The numbers also delivered market uncertainty over the July Fed monetary policy decision.

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

ADA (-2.51%) and DOGE (-2.07%) led the way down, with losses of 2.51% and 2.07%, respectively. ETH also struggled, falling by 1.94%.

BTC slipped by 0.09%, with BNB (-0.33%), SOL (-0.90%), and XRP (-0.88%) seeing modest losses.

From the CoinMarketCap top 100, Quant (QNT) led the way, rallying by 13%, with Internet Computer (ICP) gaining 11%.

Polygon (MATIC) and 1inchNetwork (1INCH) were also among the front runners.

Total Crypto Liquidations Reflect Poorer Market Conditions

As a result of the mixed session, 24-hour liquidations inched up through the Friday session.

This morning, 24-hour liquidations stood at $215 million, up from $169 million on Friday morning.

Liquidated traders over the last 24 hours also increased. At the time of writing, liquidated traders stood at 51,694 versus 42,406 on Friday.

One-hour liquidations reflected a late crypto market pullback.

According to Coinglass, one-hour liquidations stood at $10.6 million, up from $1.36 million on Friday. Those tracking crypto liquidations will look for a return to sub-$1 million over the weekend.

Crypto liquidations
Total Crypto Liquidations 090722

Daily News Highlights

  • The crypto market brushed aside the US Treasury framework for digital assets.
  • DeFi platform Aave (AAVE) unveiled another decentralized stablecoin.
  • A Californian resident filed a lawsuit against Solana (SOL) for selling unregistered securities tokens.
  • Fed Vice Chair Brainard talked of the need for strong crypto regulations to mitigate crypto risks to financial stability.
  • UK thinktank the City of London Corporation called for global rules for cryptos to enable smooth cross-border and wholesale central bank digital asset (CBDC) payments.
  • The fallout from the Three Arrows Capital (3AC) collapse continued. Blockchain.com faced a $270 million write-down on loans to 3AC.

Crypto Market Daily Highlights – SOL and ETH Lead the Top Ten Cryptos

Key Insights:

  • It was a bullish Wednesday for the crypto to ten, with Solana (SOL) and Ethereum (ETH) leading the way.
  • While sliding crude oil prices highlighted market fears for an economic recession, upbeat stats from the US delivered the NASDAQ 100 and the crypto market support.
  • The total crypto market cap rose by $19 billion to mark the fourth increase in five sessions.

It was a bullish Wednesday session for the crypto top ten. Bitcoin (BTC) continued to inch towards $21,000, last visited on June 28. SOL and ETH found the strongest support to lead the crypto top ten.

Investor jitters over a European economic recession continued to test support for riskier assets. The ongoing war in Ukraine and an energy crisis amidst a shift in central bank monetary policy remain tests of investor resilience.

However, the markets brushed aside the market headwinds, with positive US economic indicators supporting the equity and crypto markets.

NASADAQ delivers crypto support
Total Market Cap – NASDAQ – WTI 070722 15 Min Chart

At the time of writing, the NASDAQ 100 Mini was down 29.5 points.

The Total Crypto Market Cap Bounces Back to $900bn

Another choppy session saw the crypto market cap fall to a low of $867 billion before jumping to a high of $908 billion.

Crypto market cap
Total Market Cap 070722 Daily Chart

NASDAQ 100 support was the key to a return to $900 billion levels. While bullish on the day, crypto market headwinds linger.

A global economic recession, a likely shift in the crypto regulatory landscape, and an extension of the crypto winter would test investor resilience. Fed monetary policy will also be a consideration over the near term.

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

SOL and ETH rallied by 4.67% and 4.80%, respectively, to lead the way, with BNB gaining 3.38%.

ADA (+1.09%), BTC (+1.91%), DOGE (+1.89%), and XRP (+2.15%) trailed the front runners.

From the CoinMarketCap top 100, THORChain (RUNE), The Sandbox (SAND), and STEPN (GMT) led the way. RUNE rallied by 9.5%, with SAND and GMT gaining 6.5% and 6.8%, respectively.

At the other end of the table, TerraClassicUSD (USTC) saw the heaviest loss for a second consecutive day, sliding by 13%.

Total Crypto Liquidations Reflect Improving Market Conditions

24-hour liquidations fell back going into the Thursday session.

This morning, 24-hour liquidations stood at $101 million, down from $170.7 million on Wednesday.

Liquidated traders over the last 24 hours also decreased. At the time of writing, liquidated traders stood at 30,986 versus 54,606 on Wednesday morning.

However, one-hour liquidation figures suggested deteriorating market conditions at the turn of the day.

According to Coinglass, one-hour liquidations stood at $24.4 million versus $3.31 million on Wednesday. Investors will need to monitor the one-hour liquidation figures for any further rise that could pressure the crypto market.

Crypto liquidations rise
Total Crypto Liquidations 070722

Daily News Highlights

  • Meta plans NFT launch despite current market conditions.
  • UK government seeks public contribution to DeFi taxation.
  • Crypto lender Voyager Digital filed for Chapter 11 bankruptcy.
  • US lawmakers make no progress towards a CBDC.
  • Binance announced the launch of zero-free bitcoin (BTC) trading to commemorate the fifth anniversary.

Crypto Market Daily Highlights – SOL and DOGE Slide in a Choppy Session

Key Insights:

  • It was a bearish Tuesday for the crypto to ten, with Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) leading the way down.
  • The growing risk of an economic recession weighed, despite the broader market finding NASDAQ support through the US session.
  • The total crypto market cap fell by $6.2 billion to end a three-day winning streak.

It was a bearish Tuesday session for the crypto top ten. Bitcoin (BTC) failed to make it three in a row, with a late pullback leaving bitcoin in the red. SOL, DOGE, and ADA saw the heaviest losses in a particularly choppy session.

Significantly, DOGE saw its four-day winning streak end, weighed by fears of a global recession.

Ahead of the US session, economic indicators for the Eurozone weighed on riskier assets and the crypto market. Bitcoin and the broader market tracked a slide in WTI crude oil prices.

Economic data from the US supported a broad-based crypto rebound, however.

Crypto - NASDAQ - WTI
Total Market Cap – NASDAQ – WTI 060722 15 Min Chart

For the day ahead, we can expect more of the same.

EU economic forecasts will influence ahead of US ISM Non-Manufacturing PMI numbers later in the day. From the Fed, the FOMC meeting minutes will also need consideration later in the US session.

At the time of writing, the NASDAQ 100 Mini was down 29.5 points.

The Total Crypto Market Cap Sees Red as Recession Fears Weigh

A choppy Tuesday session saw the crypto market cap slide to a low of $849.6 billion before jumping to a high of $906.2 billion.

NASDAQ 100 support was the key to a brief return to $900 billion levels. However, risk aversion lingered, with the crypto market giving up gains after the US market close.

The bearish end of the day left the total crypto market cap down by $6.2 billion to $882.1 billion.

Despite the Tuesday decline, the crypto market cap remained in positive territory for July.

Crypto market cap
Total Market Cap 060722 Daily Chart

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

SOL and DOGE slid by 3.63% and 3.18%, respectively, to lead the way down, with ADA (-2.56%) close behind.

BTC (-0.27%),  BNB (-0.22%), ETH (-1.63%), and XRP (-0.98%) also saw red.

From the CoinMarketCap top 100, Convex Finance (CVX) led the way, with a 29% rally.

At the other end of the table, TerraClassicUSD (USTC) saw the heaviest loss, sliding by 14%, with Compound (COMP) declining by 5%.

Total Crypto Liquidations Reflect Improving Market Conditions

24-hour liquidations continued an upward trend going into Wednesday, which could test investor resilience ahead of the US session.

This morning, 24-hour liquidations stood at $170.7 million, up from $147 million on Tuesday and sub-$100 million on Monday.

Liquidated traders over the last 24 hours also increased. At the time of writing, liquidated traders stood at 54,606 versus 41,573 on Tuesday morning.

However, one-hour liquidation figures suggested improving market conditions at the turn of the day.

According to Coinglass, one-hour liquidations stood at $3.31 million versus $12.79 million on Tuesday.

Crypto liquidations slow
Total Crypto Liquidations 060722

Daily News Highlights

  • Institutional investors shorting BTC made up 80% of weekly inflows.
  • Crypto exchange volumes took a hit in India on new tax rules.
  • H2O Water Securities launched the first crypto water token, raising $150 million.
  • Celsius repaid $120 million to Maker.
  • Crypto lender Vauld became the latest crypto winter casualty.
  • The crypto rumor mill targeted Crypto.com and Cronos (CRO).

Crypto Market Daily Highlights – DOGE Bucks Top Ten Trend

Key Insights:

  • It was a mixed session for the crypto to ten. Dogecoin (DOGE) rallied by 5.25% to buck the trend while Ethereum (ETH) and Solana (SOL) struggled.
  • Bitcoin and the broader crypto market tracked the NASDAQ 100 through the US session. A late pullback left the crypto market with heavier losses.
  • The total crypto market cap fell for a fourth consecutive day. An $11 billion decline left the market cap at $875 billion.

It was a mixed Wednesday for the crypto market. Bitcoin (BTC) fell for a fourth consecutive day, with Ethereum (ETH) and Solana (SOL) struggling. Crypto market news delivered Dogecoin (DOGE) with support, however.

Through the US session, the NASDAQ 100 led the broader crypto market into the red. However, Bitcoin and the pack failed to track a late NASAQ 100 recovery to limit the losses on the day.

Crypto - NASDAQ late decoupling
Total Market Cap – NASDAQ – 300622 15 Min Chart

The NASDAQ 100 slipped by 0.03%, recovering a 0.70% loss from earlier in the session. For H12022, the NASDAQ 100 faces the prospect of its worst first-half yearly loss on record.

Disappointing US GDP numbers tested appetite for riskier assets. In the first quarter, the US economy contracted by 1.6%, worse than a previous 1.5% estimate.

The Total Crypto Market Cap Falls for a Fourth Consecutive Day

It was another testy session for the crypto market. A bullish start saw the total crypto market cap rise to $892.5 billion before selling pressure kicked in.

The crypto market cap fell to a day low of $865.7 billion before a partial recovery to $875 billion. $11 billion came off the table, leaving the market cap down $418 billion for June.

Crypto market cap
Total Market Cap 300622 Daily Chart

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

On Tuesday, DOGE rallied by 5.25% to buck the broader market trend. News of Coinbase, including DOGE, SHIB, and other cryptos as payment methods, delivered support.

However, it was a bearish session for the rest, with ETH and SOL falling by 3.81% and 3.62%, respectively, to lead the top ten into the red.

BNB (-3.22%) and XRP (-2.27%) also struggled, while BTC (-0.78%) ADA (-0.64%) saw modest losses.

From the CoinMarketCap top 100, TerraClassicUSD (USTC) grabbed the spotlight again, surging by 86%. After reentering the top 100 on Wednesday, USTC ranked at #53.

Other notables that bucked the broader market trend included Ox (ZRX) and Stacks (STX), which ended the day with gains of 11% and 7%, respectively.

One-Hour Total Crypto Liquidations Spike Again

For a second consecutive day, one-hour liquidations spiked in the final hour.

This morning, 24-hour liquidations were comparable to Wednesday morning. Down marginally from Wednesday ($159m), 24-hour liquidations stood at $154 million.

Liquidated traders over the last 24 hours also declined. At the time of writing, liquidated traders stood at 58,096 versus 65,335 on Wednesday morning.

While 24-hour liquidations were down, liquidations over one hour were on the higher side.

According to Coinglass, one-hour liquidations stood at $13 million. On Tuesday, one-hour liquidations had stood at sub-$1 million. One-hour liquidations will need a marked decline to reflect a shift in crypto market conditions.

Crypto liquidations
Total Crypto Liquidations 300622

Daily News Highlights

  • Big Four Shop KPMG entered the metaverse and targeted Web3 with a $30 million investment.
  • Russia announced plans to ease crypto taxes as sanctions bite.
  • DOGE and SHIB saw losses followed by gains in response to Crypto.com and Coinbase exclusions and inclusions.
  • The EU backed anti-money laundering rules for crypto assets.
  • Coinbase renewed ambitions to expand into Europe.

Shiba Inu Drops by 7% While Terra USTC Shoots Up by 153%

Key Insights:

  • Bitcoin and Ethereum are consolidating at their respective lows of $20k and $1.2k.
  • Shiba Inu led the fall for the altcoins with a 7% decline in 24 hours.
  • In an interesting turn of events, TerraUSD Classic is making headway in the crypto market.

While the rest of the market made no specific move, one of the biggest cryptocurrencies in the world exhibited some semblance of a downfall. On the other end of the spectrum was Terra Luna Classic’s 100%+ rally.

Shiba Inu Dips in Bearish Waters

After striking out a solid rally throughout this week, Shiba Inu impressed the investors recovering by 53.32% in the same duration, but the following two days ruined the recovery significantly.

SHIB declined over the next two days, losing out on 13.57% of the recovery it witnessed in June.

Investors are now concerned as to where could the meme coin be headed over the next few days, and by the looks of it, a downtrend might be the answer since price indicators are heavily signaling the same.

The Parabolic SAR, although is currently exhibiting an uptrend, it is actually preparing for a downtrend.

Once the white dots of the indicator change their position from underneath the candlesticks to above the candlesticks, the downtrend should be in effect.

And the chances of the same happening are increasing by the day as the increasing bearishness of the MACD is leading SHIB towards a bearish crossover. This could push SHIB below $0.00001018, which it has been lingering in throughout June.

Terra LUNA Classic To Rise Again?

Probably not, but the rise still managed to surprise investors around the world after the original Terra, now Terra Classic’s stablecoin, for some reason, suddenly started rallying today.

Although the buildup came over the span of the last five days, the breakthrough rise occurred yesterday.

In a single day, the stablecoin shot up by 153% at its peak, bringing the week-long rally to 588%. However, trading at $0.04, USTC is completely useless for any and everyone.

The new Terra LUNA 2.0, on the other hand, is still stuck under $3 but managed to close above $2.5 after a 13% single-day rise.

Crypto Market Daily Highlights – June 25 – BTC and ETH Make Ground

  • It was a mixed session for the crypto to ten, with bitcoin (BTC) extending its winning streak while Binance Coin (BNB) saw red.
  • There were no major news stories to provide direction on Saturday, allowing momentum from Friday to spill over to the weekend.
  • After adding $24 billion on Friday, the total crypto market cap rose by a modest $11.5 billion.

It was a mixed session for the crypto market on Saturday. Bitcoin (BTC) logged a second 3-day winning streak of the week, while Binance Coin (BNB) saw red to buck the top ten trend.

There was no major news to derail the latest uptrend, with the crypto market needing to make it four in a row to convince investors of a possible shift from the extended bearish sell-off.

The week ahead will likely be another choppy one with inflation back in focus.

The Total Crypto Market Cap Inches Nearer to $1,000bn

Following a $27 billion rise on Friday, the total crypto market cap increased by $11.5 billion on Saturday. A day high of $954 billion saw the market cap near $1,000 billion, last visited on June 13.

Crypto market cap rises.
Total Market Cap 260622 Daily Chart

Investors continued to put aside downside risks, including fears of a recession, with momentum from Thursday and Friday continuing into the weekend.

For the week, the total market cap is currently up by $58 billion, reducing the June deficit to $354 billion.

On Saturday, DOGE led the way, rising by 2.35%, with BTC (+1.15%) and ETH (+1.38%) close behind.

However, SOL (+0.76%) and XRP (+0.23%) saw modest gains, with ADA ending the day flat.

BNB bucked the trend, falling by 0.21%.

From the CoinMarketCap top 100, The Sandbox (SAND) led the broader market, rallying by 16.3%.

The market speculation of a possible investor buyout of The Sandbox delivered the breakout session on Saturday.

This week, tech companies, including Epic Games, Meta, Microsoft, and Sony, partnered to form the Metaverse Standards Forum.

Decentraland (MANA) also found strong support, gaining 9.0%.

Total Crypto Liquidations Eased, Reflective of Saturday’s Moves

The recent downward trend in total crypto liquidations resumed on Saturday, reflective of market movements.

Going into Sunday, total liquidations stood at $130 million, down from a Saturday morning of $192 million. 54,137 traders were liquidated over the past 24 hours.

One-hour liquidations were also steady. According to Coinglass, one-hour liquidations stood at $5.68 million.

Crypto liquidations ease
Total Crypto Liquidations 260622

Daily News Highlights

  • The Sandbox (SAND) and Decentraland (MANA) enjoyed breakout sessions supported by the formation of the Metaverse Standards Forum.
  • DeFi tokens continued their uptrend as investors began to dip back into the space following the collapse of TerraUSD (UST) and Terra LUNA.
  • Binance CEO CZ told Yahoo! Finance that the company is looking at 50 to 100 deals.
  • News hit the crypto wires of FTX planning to buy a stake in BlockFi.
  • The Wall Street Journal reported Goldman Sachs eying a possible acquisition of Celsius.

South Korea Bans Terra Employees’ Exit From Country Amid Investigation

Key Insights:

  • Seoul Southern District Prosecutor’s Office imposed a travel ban on crucial Terra developers.
  • As long as the investigation continues, the ban will be in effect.
  • The newly launched Terra LUNA has met a fate similar to LUNC to some extent.

Terraform Labs’ Terra will definitely go down in history as one of the biggest blunders in the crypto space. Not only did it bring terrible losses to its investors without being a rug pull, but the company behind it also fell into the crosshair of authorities. 

South Korea After Terra

The ongoing investigation against Terraform Labs and its employees pertaining to the collapse of Terra (Now Terra Classic, LUNC) has begun affecting the people that were, in a lot of ways, unaware of the workings of the company.

A former employee/developer recently revealed his plight to the world as the Seoul Southern District Prosecutor’s Office called for an absolute travel ban on certain employees that were centric on the development of Terra.

The same was also brought to light by a local media outlet, JBTC, which in a report highlighted that the travel ban was placed in order to avoid the possibility of either of the company’s employees running away from the country as well as destroying the evidence.

Not only this, the country’s authorities might even proceed to invalidate the CEO Do Kwon’s passport as they begin investigating him.

The Future of Terra

While the company deals with this situation, another situation is starting to develop in the crypto market as the newly launched Terra LUNA 2.0 is back to crashing. 

Right after the cryptocurrency came into existence, it dipped and fell from the high of $19.53 to $4.05. Today the altcoin is finding buyers and sellers at a meager $2.01. This marks an 89.7% drawdown in the span of just 20 days. 

However, the skepticism that came with the arrival of LUNA along with the broader market bearish crash is keeping it rangebound and might take a while to recover from these lows.

Binance Coin (BNB) Tumbles to Sub-$200, with the Bears Eyeing $190

Key Insights:

  • Binance Coin (BNB) rose by 2.59% on Friday, partially reversing a 9.97% slump on Thursday.
  • The upside was modest, with BNB and the broader crypto market in the deep red for the current week.
  • Technical indicators are bearish, with BNB sitting well below the 50-day EMA.

It is a tough week for Binance Coin (BNB) and the broader crypto market. On Friday, BNB rose by 2.59%. Partially reversing a 9.97% slide on Thursday, BNB ended the day at $215.46.

The upside on Friday was of little consolation for the bulls, with BNB down 15% Monday through Friday.

Investor sentiment toward Fed monetary policy and fears of a global recession weighed heavily on the appetite for riskier assets.

BNB Under Intense Selling Pressure as Crypto Winter Bites Deeper

Selling pressure resumed today, with investors having little to celebrate following Friday’s modest gains.

Crypto exchanges and their native tokens remain at risk of significant losses, with the June sell-off coinciding with the Fed’s interest rate projections and the threat of an economic recession.

Some crypto exchanges are better off than others, however. While Binance continues to face intense regulatory scrutiny in several jurisdictions, Binance sits well placed to find opportunities amidst the market turmoil.

This week, Binance announced 2,000 open positions while other crypto platforms cut payrolls.

For BNB, however, much will depend on the outcome of a new SEC investigation into Binance.

Early this month, FX Empire reported news of the SEC investigating whether BNB was a security when sold in 2017.

With the SEC v Ripple case ongoing, the issue of cryptos and securities remains unresolved, which continues to impact the US crypto market.

Following news of the SEC investigation, Binance also got hit with an investor group class action suit on Monday, June 13.

The investor group alleges that Binance illegally sold unregistered securities UST and LUNA.

Investor group class action suits are on the rise as investors suffer heavy losses. The LUNA and UST collapse and stablecoin issues have exasperated the situation.

Binance Coin (BNB) Price Action

At the time of writing, BNB was down 8.47% to $199.54.

A mixed start to the day saw BNB rise to an early morning high of $218.72 before falling to a low of $196.14.

BNB fell through the First Major Support Level at $208 and the Second Major Support Level at $201 to a new current year low.

Steering clear of sub-$190 was the only consolation through the morning session as selling momentum gathered pace.

BNB selling pressure builds
BNBUSD 180622 Daily Chart

Technical Indicators

BNB will need to move through the Major Support Levels and the $215 pivot to target the First Major Resistance Level at $222.

BNB would need broader crypto market support to return to $210 levels.

Failure to move through the Major Support Levels and the pivot would test support at $190. Barring an extended sell-off throughout the afternoon session, BNB should avoid the Third Major Support Level sitting at $187.

BNB tests support early.
BNBUSD 180622 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (above), it is a bearish signal. BNB sits below the 50-day EMA, currently at $235. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA; price negative.

A return to $220 would bring the 50-day EMA into play.

EMAs flash red.
BNBUSD 180622 4-Hourly Chart

Crypto Market Outlook: Risk-Off

Summary & Key Takeaways

  • Though we are seeing the makings of some favourable readings in many on-chain, derivatives, technical and sentiment indicators, the macro and liquidity environment moving forward remain a significant headwind for crypto assets. Rather than signaling at bottom, many of these metrics are perhaps confirming we are indeed in a bear market.
  • Investors should act accordingly; deploy capital in a conservative manner with a long-term timeframe, and understand that there may be significant downside ahead.
  • Any rallies from here will likely be sold as they will simply not be supported by the macro environment. Hedging further downside remains a wise strategy at present.

Risk-Off Grips the Crypto Landscape

When it comes to the world of cryptocurrency, the sparseness between risk-on versus risk-off is akin to making a small fortune versus total bankruptcy. It is the former that grabs the attention and lust of retail traders, whilst it is unfortunately the latter in which we are experiencing at present. Over the past few days we have seen approximately 265,770 cryptocurrency traders and investors be fully liquidated, with around $1.26b in capital destroyed. Unfortunately, with a speculative and high-beta asset, these are the ever present risks that come for the fore during a liquidity and growth cycle downturn.

The current drawdown in Bitcoin since its all-time high in November is now circa 70%. Again, this is to be expected of such asset class, and as we can see below, historically bear markets for BTC have seen prices fall anywhere from 70% to 90%. History would tell us there may be more pain ahead.

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We are witnessing true capitalism at work within the crypto space at present. Layoffs (as seen by BlockFi cutting staff by 20% and Coinbase reducing its workforce by 18%, among others), the demise of LUNA and deteriorating VC investment are some such examples of the pain underway within the market. Though these developments ought to lead to a brighter future, things are likely to get worse before they get better (looking at your MicroStrategy). Creative destruction is perhaps capitalism at its finest.

Looking at the technical picture, we can clearly see a chart that looks like it wants to go lower given the significance of what looks to have been a massive head and shoulders top. Though we will likely find support around the $20k level, an area which coincides with both the previous cycle all-time highs back in late 2017 and the 200-week moving average, given the macro backdrop and how previous crypto bear markets have seen drawdowns of far greater significant than present, $10k-$15k looks to be a possibility at some point this year.

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For BTC, the 200-week moving average has been an important area of support in recent years. Indeed, this moving average acted as support for the final lows during the previous bear market in late 2018/early 2019, as well as during the March 2022 crash. I suspect we could bounce hard of this level in the short-term, especially when we consider the context of this flush-out occurring in-line with a weekly DeMark 9 setup buy signal.

For Ethereum, the technical picture is much the same. The current price is too flirting with the 200-week moving average around $1,250, a level which also coincides with the previous cycle high in January 2018 and ETH’s own weekly DeMark 9 setup buy signal.

As such, I suspect this level will hold for the time being and form the basis of a short-term bounce. Should we break below this level in the coming months, sub-$1,000 ETH is likely with their being very little technical support until around $500-$750. I will note however the 200-week moving average has less historical significance for ETH given its limited lifespan.

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What leads me to be believe reaching low-teens BTC and sub-$1,000 ETH during this bear market to be a distinct possibility is their historical volume by price. By examining volume at different price levels, this helps us gauge where potential support and resistance levels may reside. Given there is comparatively little historical volume between $30k and $15k for BTC, it should not be surprising to see prices eek lower over the coming months until it can find support at these lower levels.

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A similar volume analysis on ETH also suggests there may be little support between $1,000 and around $500-$600. Clearly, the $1,000 area looks to be an important level for ETH.

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One technical sign I have been looking for to help provide an indication of a bottom (or at least the beginnings of one) is a capitulation-like spike in downside volume. Whilst not a prerequisite for a market bottom, a significant spike in volume helps to provide comfort that selling pressure may be waning. We saw such spikes in BTC during the 2017, 2020 and 2021 lows.

Whilst this is yet to show up on the weekly charts for either BTC or ETH above, the recent move lower has indeed seen a notable pick-up in downside volume on the daily chart.

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From a macro perspective, crypto markets continue to trade as high-beta risk assets, and are doing so step-for-step with the high-beta/low-beta ratio. The latest move lower is largely in-line with what we should expect given the growth cycle and liquidity cycle outlook, one that does not portend favorably for risk assets.

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Indeed, with the macro backdrop indicating the high-beta/low-beta ratio continues to roll over in the coming months, crypto is not the place to be allocating significant portions of your capital at present.

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Indeed, on a relative basis we are seeing BTC itself breakdown compared to equities.

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And continue to breakdown versus commodities.

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All the while looking like it wants to go lower versus bonds.

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Despite the attractiveness of the future of digital assets as an asset class, it won’t be as a store of value but rather as a high-beta risk asset. As such, investors must adjust their expectations accordingly and understand how such assets behave during growth and liquidity cycle downturns. Again, both are suggesting investors remaining underweight such assets for the time being.

Seasonality is also confirming this message, with the June to September period tending to be the least favourable for crypto relative to most other months.

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Source: Coindesk

From a sentiment standpoint, crypto is almost as hated as it has ever been. Whilst this can be viewed as a contrarian buy signal, sentiment indicators within the crypto markets tend to display an inherent level of imbedded momentum, in that extreme sentiment readings to the upside tend to remain elevated for long-periods and precede higher prices, whilst extreme readings to the downside tend to precede lower prices in the short-term.

To me, the current levels in the Crypto Fear & Greed Index are confirming the downtrend rather than providing a contrarian buy signal.

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Looking now to the futures and derivatives markets, what is interesting is that whilst the latest flush out has seen a significant unwind in futures open interest for BTC, open interest continues to lag price and remains somewhat elevated compared to the lows seen during mid-2021. There is still more leverage in the crypto system now compared to the lows of last year.

However, as the futures market is generally used for traders of a short-term time frame due to the excessive roll costs associated with holdings futures contracts for long time periods, buyers of the Bitcoin futures ETFs who intend to hold for the long-term would cause the open interest data to be skewed to the upside. As a result, looking at Bitcoin open interest in isolation as means to asses speculative leverage within the system may be misleading.

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The fact that Ethereum’s open interest is now back down to its mid-2021 lows is somewhat confirmative of the idea that much of the leverage has now been washed out. This significant unwind in leverage within the crypto ecosystem should help to slowly set a floor in price going forward.

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We have also seen the largest level of Long Liquidations (in dollar terms) in BTC derivatives markets since the Q2 2021 sell-off, again confirming this washout of leveraged long positions.

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If we turn now to some of the on-chain metrics for Bitcoin and the crypto space, we continue to see many indicators slowly but surely reaching levels indicative of excellent long-term buying opportunities in the past. However, I should preface this section by reminding readers not only can many of these metrics continue to move lower, but they also can remain suppressed for long periods. Thus, investors willing to deploy capital would be best to do so in a conservative manner.

Beginning with several on-chain metrics measuring capitulation and profitability of crypto holders, specifically the Net Unrealised Profit/Loss (NUPL) ratio for BTC, we can see the latest drawdown has pushed this ratio down to its lowest level since March 2020.

Readings above zero tend to indicate investors are by-and-large in profit, with sub-zero readings (where we reside at present) indicative of the opposite. Clearly, many holders are in a world of pain at present as they are realizing losses on much of their crypto holdings.

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Another popular measure of profitability is the Market Value to Realised Value (MVRV) ratio, which again serves as a proxy for the average profit or loss position of investors. The MVRV ratio is too nearing levels not seen since the March 2020 lows. Again, as noted here by Glassnode, it is important to remember that past cycles have seen such measures remain at “undervalued” levels for many months. Just because such indicators have reached a perceived “undervalued” level does not mean they cannot go lower.

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In terms of network activity, what is encouraging for the long-term viability of Bitcoin and crypto as a functional asset class is how we continue to see the number of total network addresses rise even as price is in freefall. I do view this a favarouable fundamental outcome for the long-term.

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However, one of my favourite indicators I use as a proxy for retail participation within the crypto space in Active Addresses, continues to trend sideways. I view this metric as close to an on-chain macro indicator as there is. Whilst Total Addresses provides insight to the overall network adoption, Active Addresses provides insight into retail participation (which is largely a function of the macro environment). I will be looking for Active Address to begin to make higher highs as a confirmation of when the bear market may be nearing an end.

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Looking now at the buying and selling activity of long-term holders (those who have historically acted as the smart-money within the crypto space, by buying at the lows and selling at the tops), favourable long-term developments continue to play out. Indeed, as we can see below, long-term holders, or hodlers (categorized by those who have held BTC for over a year), continue to accumulate and increase their overall positions as prices fall. This is akin to what we saw during the 2018 and 2019 periods of price depreciation.

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And finally, another healthy measure for the long-term viability of the crypto space is the Bitcoin Hashrate. Despite the ~70% drawdown in Bitcoin over recent months, BTC’s hashrate (which can be considered as a proxy for the security of the Bitcoin network) continues to remain strong despite weakness in price, again confirming the long-term network adoption in a similar manner to Total Addresses.

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Indeed, though we are seeing the making of some favourable readings in many on-chain, derivatives, technical and sentiment indicators, the macro and liquidity environment moving forward remain a significant headwind for crypto assets. Rather than signaling at bottom, many of these metrics are perhaps confirming we are indeed in a bear market.

As such, investors should act accordingly; deploy capital in a conservative manner with a long-term timeframe, and understand that there may be significant downside ahead. Likewise, any rallies from here will likely be sold as they will simply not be supported by the macro environment.

Do not try and time the bottom. The time to be overweight high-beta risk assets will come when the growth and liquidity cycles are a tailwind, not a headwind. Patience is key.