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Crypto Market Daily Highlights – ETH and XRP Sink in Fed Sell-Off

By:
Bob Mason
Published: Sep 21, 2022, 23:56 UTC

On Wednesday, the Federal Reserve sent the crypto market into the deep red, with a hawkish rate hike and projections weighing on riskier assets.

Fed hits the crypto market - FX Empire

In this article:

Key Insights:

  • It is a bearish Wednesday session for the crypto top ten, with ETH and XRP leading the top ten into the red.
  • The Fed rate hike, FOMC projections, and Fed Chair Powell’s press conference sent the NASDAQ 100 and the crypto market south.
  • The total crypto market cap is down by $22.0 billion to $862.4 billion.

It is a bearish Wednesday session for the crypto top ten. ETH and XRP lead the crypto top ten into the red as investors responded to the Fed policy decision, projections, and Powell’s press conference. BTC fell short of $20,000 for a third consecutive session.

The Federal Reserve sent riskier assets into negative territory, with a 75-basis point rate hike and the talk of more to come. Downward revisions to growth forecasts and upward revisions to inflation and median interest rates for 2022 and 2023 were also crypto market negative.

On Wednesday, the NASDAQ 100 slid by 1.79%, with the crypto market closely tracking the NASDAQ throughout the US session. This morning, the NASDAQ 100 Mini was down 90 points.

NASDAQ correlation.
Total Market Cap – NASDAQ – 220922 5 Minute Chart

Crypto Market Slides as Investors Respond to the Federal Reserve

On Wednesday, the crypto market cap rose to a pre-Fed high of $927.1 billion before sliding to a post-Fed low of $847.0 billion. A late partial recovery leaves the market cap down $21.7 billion to $862.4 billion, with 40 minutes of the session remaining.

Crypto market cap hits reverse.
Total Market Cap 220922 Daily Chart

The Crypto Market Movers and Shakers from the Top Ten and Beyond

It is a bearish Wednesday session for the crypto top ten.

With 40 minutes of the session remaining, ETH and XRP lead the way down, with losses of 5.61% and 4.79%, respectively.

BTC (-2.00%), DOGE (-2.14%), and SOL (-2.27%) are also struggling, while ADA (-0.90%) and BNB (-0.86%) have recovered from heavier losses.

From the CoinMarketCap top 100, it is a mixed session.

EOS (EOS) and Helium (HNT) are among the worst performers, sliding by 11.78% and 10.08%, respectively. Curve DAO Token (CRV) is down 8.86%.

At the top end of the table, Celsius (CEL), Compound (COMP), and Lido DAO (LDO) lead the way. COMP is up 4.62%, with CEL and LDO seeing gains of 3.83% and 2.18%, respectively.

24-HourCrypto Liquidations Slide Back on Hawkish Fed Move

Over 24 hours, total liquidations spiked in response to the Fed policy decision, projections, and press conference.

At the time of writing, 24-hour liquidations stood at $318.09 million, up from $121.53 million on Wednesday morning. Liquidated traders over the last 24 hours also spiked. At the time of writing, liquidated traders stood at 88,169 versus 37,436 on Wednesday morning.

Liquidations over twelve and four hours were up, while one-hour liquidations decreased.

Crypto liquidations spike.
Total Crypto Liquidations 220922

According to Coinglass, 12-hour liquidations stood at $291.50 million, up from $82.23 million on Wednesday morning, with four-hour liquidations rising from $16.13 million to $148.65 million.

However, one-hour liquidations declined from $11.61 million to $2.78 million, reflecting the late Wednesday partial recovery. The chart below shows market conditions throughout the session.

Crypto market finds late support.
Total Market Cap 220922 Hourly Chart

About the Author

Bob Masonauthor

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.

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