Key ideas:
- It was a mixed Tuesday session for the top ten crypto. BTC and ETH led the way while BNB struggled.
- Lower-than-expected US inflation numbers boosted demand for riskier assets, with the NASDAQ index and the cryptocurrency market benefiting from the inflation numbers.
- The crypto market rose $19.94 billion to end the day at $827.21 billion.
It was a mixed Tuesday session for the crypto top ten. BTC Y ETH led the way, while BNB bucked the trend. Notably, BTC visited $18,000 for the first time since November 10 and avoided sub-$17,000.
BNB continued to struggle as investors responded to the news of the US authorities who plan to collect Binance with financial crimes.
However, US economic indicators provided broader support for the crypto market. The highly anticipated US CPI Report reported lower-than-expected inflation numbers, boosting demand for riskier assets.
In November, the US annual inflation rate softened from 7.7% to 7.1% versus forecasts for a drop to 7.3%. In response to the numbers, the probability of a 75 basis point rate hike fell to just 17.0%, down from 26.5% on Monday.
Rising bets on a December Fed pivot supported the NASDAQ and S&P500, which posted gains of 1.01% and 0.73%, respectively. Sub-7% may have provided more substantial support and raised the stakes for a nearer-term pause in rate hikes.
Today, the focus will shift to the Fed's interest rate decision, the FOMC's economic projections and Fed Chairman Powell's press conference.
With markets expecting a 50 basis point rate hike, the economic projections and the press conference will likely have the most influence. Beyond the interest rate outlook, investors will also consider economic growth forecasts.
This morning, the NASDAQ mini was up 23.5 points.
Crypto Market Finds Support For NASDAQ Index In US CPI Report
A bearish start to the session on Tuesday saw the crypto market slide to a mid-morning low of $795.03 billion. However, weaker than expected US inflation numbers made for an exceptional afternoon session. The crypto market capitalization rose to a high of $840.98 billion in the early afternoon before pulling back.
Despite the pullback, the crypto market capitalization rose by $19.94 billion to end the session at $827.21 billion.
The top ten crypto market movers and shakers and beyond
It was a mixed Tuesday session for the top ten crypto.
BTC Y ETH led the way, rebounding 3.23% and 3.51%, respectively.
ADA (+2.28%), MATIC (+1.49%), and XRP (+2.21%) were not far behind, while DOGE followed with a gain of 0.11%.
bnb bucked the trend, falling 1.48%.
From the CoinMarketCap top 100, it's a mixed session.
Toncoin (TON) and OKB (United Nations) led the way with gains of 9.09% and 8.47%, respectively. ghost (FTM) was also in the lead, with an increase of 6.57%.
However, GMX (GMX) led the way lower, falling 8.90%, with apecoin (BOW) and trusted wallet token (TWT) with losses of 7.32 % and 4.77 %, respectively.
24-hour sell-offs rise in choppy but bullish session
For 24 hours, crypto liquidations surged as the market responded to the highly anticipated US CPI Report.
At the time of writing, 24-hour settlements stood at $132.06 million, up from $53.52 million on Tuesday morning.
Traders liquidated in the last 24 hours also increased. At the time of writing this report, traders settled stood at 31,207 compared to 26,298 on Tuesday morning. Crypto liquidations for 12 hours and one hour increased while they fell for four hours.
According to purse, 12-hour settlements increased from $14.15 million to $93.61 million, with one-hour settlements of $0.723 million to $1.24 million. However, four-hour liquidations fell from $9.03 million to $2.33 million.
The following chart shows the market conditions throughout the session.
