Crypto Market Daily Highlights – US Economic Woes Send ETH toward $2,000

Key Insights:

  • It is another bullish session for the crypto top ten, with Solana (SOL) and Ethereum (ETH) leading the way.
  • US GDP numbers for the second quarter reined in expectations of an aggressive Fed rate path to normalization, delivering market support.
  • In response to the US economic contraction, the market cap fell to a day low of $1,017 billion before jumping to a day high of $1,092 billion.

It is a bullish Thursday session for the crypto top ten. Bitcoin (BTC) revisited $24,000 for the first time since June 20, with Ethereum (ETH) and Solana (SOL) leading the way.

Following the market-friendly Fed rate hike on Wednesday, US economic indicators drew interest on Thursday.

In the second quarter, the US economy contracted by 0.9% versus a forecasted 0.5% expansion. The economy contracted by 1.6% in the previous quarter.

While negative for riskier assets, the contraction reined in bets of another 75-basis point rate hike in September, delivering support to the global equity markets and the crypto market.

The crypto market tracked the NASDAQ 100 through the US session, recovering from a dip in response to the GDP numbers.

On Thursday, the NASDAQ 100 followed Wednesday’s 4.06% rally with a 1.08% gain.

Total Market Cap – NASDAQ – 290722 5 Min Chart

The Total Crypto Market Cap Jumps on FED Bets

On Thursday, the crypto market found early support before sliding to a day low of $1,017 billion. Investor reaction to the US economic contraction weighed on the crypto market before a rebound to a day high of $1,092 billion.

The upside came in response to a shift in sentiment towards Fed monetary policy. Another contraction eased bets of a 75-basis point rate hike in September to bring inflation back to target.

With another $43 billion flowing into the crypto market, an end to a three-month losing streak looks more assured. For July, the total market cap is up $211 billion.

Total Market Cap 290722 Daily Chart

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

With two hours remaining for the Thursday session, SOL was up by 7.73% to lead the way, with ETH (+6.18%) close behind.

BNB (+2.06%), BTC (+3.97%), DOGE (+3.62%), and XRP (+3.61%) also found strong support, while ADA (+0.78%) trailed.

From the CoinMarketCap top 100, it was another bullish session, with stablecoins seeing modest losses for a second consecutive session.

Lido DAO (LDO), Ethereum Classic (ETC), Synthetix (SNX), and Uniswap (UNI) were among the front runners again.

ETC was up by 23.09%, with LDO (+16.70%), SNX (+10.48%), and UNI (+16.89%) close behind.

Total Crypto Liquidations Continued Upward Trend Over 24-Hours

On Thursday, 24-hour liquidations increased again, with the liquidation of short positions dominating as investors responded to the US GDP numbers and what it means from a Fed monetary policy perspective.

At the time of writing, 24-hour liquidations stood at $543 million, up from $317 million on Thursday morning.

Liquidated traders increased over the last 24 hours. At the time of writing, liquidated traders stood at 120,788 versus 78,656 on Thursday morning.

While four-hour liquidation figures were also elevated, one-hour liquidation numbers pointed to a steadying in market conditions.

Total Crypto Liquidations 290722

According to Coinglass, four-hour liquidations stood at $96.94 million, up from $36.06 million on Thursday. One-hour liquidations stood at $3.46 million, up from $2.96 million. (See hourly crypto market cap chart below).

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