It was another mixed session for the broader crypto market. DOGE, SHIB, and WAVES led the way, while ADA saw red as the Vasil hard fork approaches.
It was another choppy session for the crypto market on Tuesday. Bitcoin (BTC) took a run at $22,000 before easing back. The pullback saw bitcoin end the day at $20,699.
A sharp pickup in risk appetite across the global financial markets delivered support to the crypto market.
With the US markets reopened after Monday’s holiday, the NASDAQ 100 rallied by 2.51%.
While weaker than in previous weeks, a correlation between bitcoin and the NASDAQ was evident, with a late decline in the NASDAQ pulling back the broader crypto market.
An upward swing in crude oil prices tested support for the NASDAQ and the crypto majors late in the session. Market angst over inflation and central bank policies to bring inflation back to target raises the threat of a global economic recession.
Despite this week’s uptrend, headwinds persist, which leaves the crypto market at risk of a reversal.
Today, Fed Chair Powell testimony on Capitol Hill will draw plenty of interest and will remind the markets of what lies ahead on the policy and economy front.
Another mixed crypto session led to a modest increase in the total crypto market cap.
On Tuesday, the total market cap increased by $8.8 billion, following a $4.4 billion rise on Monday.
The upswing was small compared with Sunday’s $62.6 billion jump, leaving the market cap down $405 billion for June.
Poignantly, the crypto market avoided a new June low for a third consecutive day.
However, downside risks remain, with central bank monetary policy, the threat of a recession, and a likely shift in the regulatory landscape the key considerations near term.
Looking at the top ten, ADA (-2.04%) and ETH (-0.18%) gave up early gains to end the day in the red.
However, it was a bullish session for the remainder, with DOGE rallying by 9.50% to lead the way.
BNB (+1.66%), BTC (+0.71%), SOL (+3.30%), and XRP (+1.44%) also found support.
From the CoinMarketCap top 100, Shiba Inu (SHIB) and Waves (WAVES) led the way, surging by 31.20% and 43.04%, respectively.
On the stablecoin front, USDD movements were market positive. While TRON DAO Reserve failed to restore the peg, USDD returned to $0.97, easing market fear of another stablecoin collapse.
The return to $0.97 levels delivered TRON (TRX) support, with TRX ending the day up 6.18%.
TRON DAO Reserve collateral figures continued to ease concerns of a USDD collapse.
At the time of writing, the collateral ratio stood at 326.35%.
The downward trend in total crypto liquidations continued on Tuesday.
After hitting $1 billion last Tuesday, 24-hour liquidations fell from $315 million on Monday to $199.82 million on Tuesday.
This morning, 24-hour liquidations stood at $170.27 million, a second consecutive morning at sub-$200 million.
One-hour liquidations reflected improving market conditions.
According to Coinglass, one-hour liquidations stood at $1.91 million.
A decline in 24-hour total liquidations to sub-$100 million would deliver crypto market support.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.