Key Insights:
- It was a mixed Saturday session for the crypto top ten, with BTC and DOGE bucking a bearish trend.
- Increased crypto market scrutiny left the broader crypto market in the red, with the White House Administration and the SEC in focus.
- The crypto market cap fell by $6.76 billion to end the day at $999.42 billion.
It was a mixed session for the crypto top ten on Saturday. ADA led the way down, while BTC and DOGE bucked the bearish trend. BTC wrapped up the day at $23,000 for the fourth consecutive session.
There were no external market forces to guide investors on Saturday. Softer US inflation numbers and a fall in personal spending were not enough to deliver a second bullish session.
Increased Cryptocurrency Scrutiny Weighed on Investor Sentiment
From the crypto market, increased crypto market scrutiny from the US administration and the SEC tested buyer appetite. The release of the Administration’s Roadmap to Mitigate Cryptocurrencies’ Risks continued resonating on Saturday.
The roadmap called for increased efforts to regulate cryptocurrencies, stating,
“Congress, too, needs to step up its efforts. For example, Congress should expand regulators’ powers to prevent misuses of customers’ assets – which hurt investors and distort prices – and to mitigate conflict of interest.”
The statement added,
“In the past year, traditional financial institutions’ limited exposure to cryptocurrencies has prevented turmoil in cryptocurrencies from infecting the broader financial system. It would be a grave mistake to enact legislation that reverses course and deepens the ties between cryptocurrencies and the broader financial system.”
The roadmap followed the release of the 116-page FTX creditor list that included listed US corporations and financial institutions, including Goldman Sachs (GS).
Notably, the roadmap also stated,
“We encourage regulators to continue these efforts, including those designed to address and limit financial institutions’ exposure to the risks of digital assets.”
On Friday, Gary Gensler also drew investor attention, sharing a discussion with Commissioner Carline Crenshaw on the risks associated with investing in cryptos.
The SEC Chair did not hold back, saying,
“There is increased risk when you invest in these novel, speculative, volatile investments that really lack basic protections and regulation.”
Gensler’s comments and the roadmap signaled a likely increase in activity to bring the crypto market under tighter regulations. Significantly, the roadmap may also give the SEC more freedom to regulate by enforcement and a green light to target financial institutions exposed to cryptocurrencies.
The Day Ahead
Today, investors should continue to monitor the crypto news wires. FTX and Genesis bankruptcy proceedings and crypto regulatory chatter will need consideration. In the final hour, the NASDAQ mini could also provide direction.
Investor focus will turn to the Fed this week, with the markets betting on a 25-basis point interest rate hike and a less aggressive interest rate trajectory to bring inflation to target.
Crypto Market Sees Red on Increased Regulatory Scrutiny
It was a mixed Saturday session. A bullish start to the day saw the crypto market cap rise to an early high of $1,016 billion before hitting reverse. The reversal saw the crypto market cap fall to an early afternoon low of $989.69 billion. However, an afternoon recovery left the market cap at $999.42 billion, marking a $6.76 billion loss on the day.
The Crypto Market Movers and Shakers from the Top Ten and Beyond
It was a mixed session for the crypto top ten.
ADA fell by 2.05% to lead the way down. BNB (-0.58%), ETH (-1.62%), SOL (-1.68%), and XRP (-1.11%) also saw red.
However, BTC (+0.27%) and DOGE (+0.92%) bucked the top ten trend.
From the CoinMarketCap top 100, it was a mixed session.
OKB (OKB) and convex finance (CVX) led the way, rising by 8.53% and 8.85%, respectively, with gala (GALA) ending the day up by 7.60%.
However, lido DAO (LDO) fell by 6.29%, with curve DAO token (CRV) and optimism (OP) seeing losses of 5.27% and 4.21%, respectively.
24-Hour Liquidations Slide on Range-Bound Saturday Session
Over 24 hours, crypto liquidations fell further below-normal levels in a relatively range-bound Saturday session. Long positions had the higher share of liquidations, accounting for 74.71% of total liquidations. At the time of writing, 24-hour liquidations stood at $59.34 million versus $110.08 million on Saturday morning.
Liquidated traders over the last 24 hours were also lower. At the time of writing, liquidated traders stood at 24,888 versus 30,628 on Saturday morning. Crypto liquidations were lower over 12 and four hours and over one hour.
According to Coinglass, 12-hour liquidations stood at $30.11 million, down from $58.03 million on Saturday, with four-hour liquidations down from $32.95 million to $8.52 million. One-hour liquidations declined from $2.33 million to $1.48 million.
The chart below shows market conditions throughout the session.
