Key ideas:
- It was a mixed Friday session for the top ten crypto, with ETH bucking an uptrend.
- Softer US inflation numbers and the NASDAQ index provided support, while regulatory talk limited the upside.
- The crypto market capitalization rose by $4.89 billion to end the day at $1.006 billion.
It was a mixed session for the crypto top ten on Friday. ADA led the way while ETH saw red. Notably, BTC it ended the day at $23,000 for the third session in a row.
US economic indicators provided further evidence of the Fed effect on the US economy. Personal spending fell 0.2% in December, after a 0.1% decline in November, while personal income increased by 0.2%.
The Michigan Consumer Sentiment Index rose from 59.7 to 64.9, from a preliminary 64.6, while the Inflation Expectations component fell from 4.4% to 3.9%, down from 4 .0% preliminary.
Inflation figures were supportive for the market, with the core PCE price index rising to 4.4% yoy in December from 4.7% in November.
While the numbers were good enough to cement a 25 basis point Fed rate hike next Wednesday, the rebound in consumer confidence and the modest drop in personal spending raised hopes of a landing. smooth.
According to the FedWatchTool, the probability of a 25 basis point rise in interest rates stands at 99.2% this morning compared to 58.7% a month ago. A week ago, the chances of an interest rate hike of 25 basis points were 99.3%.
On Friday, the NASDAQ Composite Index rose 0.95% to extend its weekly winning streak to four weeks.
Regulatory chat tests the appetite of crypto investors
From the crypto market, the regulatory talk was the main drag. On Friday, the White House Administration called for greater efforts to regulate cryptocurrencies in a declarationsaying,
โCongress also needs to step up its efforts. For example, Congress should expand the powers of regulators to prevent the misuse of client assets, which hurts investors and distorts prices, and to mitigate conflicts of interest."
The statement added,
โLast year, the limited exposure of traditional financial institutions to cryptocurrencies prevented the cryptocurrency turmoil from infecting the broader financial system. It would be a serious mistake to enact legislation that reverses course and deepens the ties between cryptocurrencies and the broader financial system.โ
The SEC also made headlines, with Reuters reporting that the Securities and Exchange Commission is exploring whether registered investment advisers adhere to rules related to the custody of clients' crypto assets. The SEC has reportedly stepped up its efforts since the FTX collapse.
Things were no different across the pond, with the UK Treasury Committee launching a publication highlighting that 85% of crypto companies failed to meet minimum standards, according to the Financial Conduct Authority (FCA).
Harriet Baldwin MP, Chair of the Treasury Committee, said:
โWe are in the middle of an investigation into crypto regulation, and these statistics have not misled us into the impression that parts of this industry are a wild west.โ
the day ahead
Today, investors should continue to monitor the crypto news wires. FTX and Genesis bankruptcy proceedings and crypto regulatory talk will need to be noted.
Crypto Market Finds NASDAQ Support in Softer US Inflation
It was a hectic session on Friday. A bearish start to the day saw the crypto market capitalization slide to an early low of $978.09 billion. However, investors responded to the softer US inflation numbers, with crypto market capitalization rising to a late high of $1.022 billion before pulling back.
Despite the pullback, the crypto market capitalization ended the session at $1.006 billion, marking a gain of $4.89 billion for the day.
The top ten crypto market movers and shakers and beyond
It was a mixed session for the top ten crypto.
ADA rose 2.63% to lead the way, with bnb (+1.08%) finding strong support.
Nevertheless, BTC (+0.27%), DOGE (+0.69%), SUN (+0.33%), and XRP (+0.75%) behind the first, while ETH (-0.18%) saw red.
From the CoinMarketCap top 100, it was a mixed session.
Avalanche (AVAX) rallied 17.16% to lead the way, with trusted wallet token (TWT) and DAO curve token (CRV) with gains of 13.08% and 7.81%, respectively.
However, the threshold (you) slid 9.74%, with axie infinity (AXIS) and flow (FLOW) with losses of 2.86 % and 2.16 %, respectively. Suitable leaders in the cryptocurrency market (SUITABLE) fell for the second consecutive session.
24-hour settlements remained at below-normal levels
For 24 hours, cryptocurrency selloffs held at below normal levels in a choppy session on Friday. Long positions saw a marginally higher proportion of liquidations, representing 50.77% of total liquidations. At the time of writing, 24-hour settlements stood at $110.08 million, up from $112.58 million on Friday morning.
Traders liquidated in the last 24 hours were also lower. At the time of writing, traders liquidated stood at 30,628, up from 37,036 on Friday morning. Crypto liquidations were lowest for 12 and four hours, while highest for one hour.
According to purse, 12-hour settlements were at $58.03 million, down from $63.81 million on Friday, with four-hour settlements down from $37.30 million to $32.95 million. However, one-hour settlements increased from $0.681 million to $2.33 million.
The following chart shows the market conditions throughout the session.
