- The top ten crypto assets saw a bullish Wednesday, and XRP led the pack.
- Market boast towards the Fed and inflation continued to back risk assets, with FTX news also offering support.
- The cryptocurrency market capitalization increased by $21.86B to conclude the day near $838.02B.
The top digital tokens explored bullish waves on Wednesday. Meanwhile, XRP noted a breakout following the improved market mood. Also, Bitcoin secured support to wrap the day above $17K for the 4th time since 15 December.
Investor hopes of eased United States inflation continued to drive demand for risk assets yesterday. Remember, a softer United States CPI data would support estimates of a 25bp Federal rate increase in February. Though the Federal Reserve maintains hawkishness on rates, market players anticipate less aggressive rate increases to catalyze soft landing.
Mid-week sessions witnessed the NASDAQ Composite gaining 1.76%, whereas the S&P 500 surged 1.28%. While bias toward the Federal continues to stimulate, the latest updates on FTX’s bankruptcy remained crypto-friendly.
Andy Dietderich, an FTX lawyer, told the United States insolvency judge (John Dorsey) they located over $5B in cash & cash equivalents. Also, FTX’s lawyer confirmed plans to sell the $4.6B nonstrategic investments. While forced sales of nonstrategic assets might not hit $4.6B, creditors encounter less substantial losses than initial fears, reducing contagion risks.
Adding more support were the updates of Voyager Digital securing authorization to continue its deal with Binance US. The United States economic timetable will attract attention today, with jobless claims and U.S. CPI data taking the focal point. The figures might determine the intensity of the Federal’s next rate increase.
A hotter-than-anticipated CPI data and around 200K jobless claims might renew bets of 50bp rate increments that may weigh on risk assets. Also, market participants should monitor FOMX member chatter.
Crypto Markets Stretch Winning Spree to Four Sessions
Choppy moves on Wednesday saw the cryptocurrency market capitalization dipping to the $806.37B late afternoon lows. Nonetheless, the late rally welcomed upsides, and the crypto market valuation climbed to $842.46B final hour highs before retracing.
Despite the slight pullback, the crypto market capitalization finalized the day near $838.02B, indicating a $21.86B increase. Remember, the metric closed the session at the $800B vicinity for the 3rd time since 15 December and stretched its winning spree to four sessions.
Crypto Shakers and Movers
The top ten cryptocurrencies enjoyed a bullish Wednesday. XRP led the pack with a 6.33% surge, while other solid gains emerged from Ethereum (+4.02) and MATIC (+4.03%). Nonetheless, Cardano (+0.31%), Binance Coin (+2.70), Bitcoin (+2.91%), and Dogecoin (+0.26%) followed the front-runners.
Meanwhile, the top 100 assets printed a mixed session, according to Coinmarketcap. AVAX gained 24.49% to dominate the upward journey, with NEAR and MINA surging 10.7% and 5.88%, respectively. On the other hand, BSC lost 5.63%, with APT and LDO surrendering 3.11% and 1.72%, respectively.
Daily Liquidations Soar as Late Rally Hit Short Investors
The daily cryptocurrency liquidations bounced back during the mid-week, with an optimistic afternoon session hitting market participants holding short positions. While writing these lines, 24Hr liquidations hovered at $134.15M versus early Wednesday at $59.37M.
Also, the past 24hrs saw increased liquidated traders, with the index swaying at 31,423 during this publication. 24hr liquidated traders were 20,293 early on Wednesday. Cryptocurrency liquidations were higher on the 12hr and 1hr timeframes.
