Key ideas:
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Bitcoin (BTC) and the broader crypto market resumed selling in the current week, with bitcoin visiting $17,600 before finding support.
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The top ten Solana (SOL) cryptos bucked the trend with modest gains as investors grappled with headwinds in the crypto market.
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Total market cap fell for the fourth time this week, with $100 billion off the table ahead of a partial recovery.
It was a mixed session for the crypto market on Saturday. For the broader market, a drop in bitcoin (BTC) to a new year-to-date low of $17,601 highlighted downside risks.
Over the weekend, we saw bitcoin decouple from NASDAQ, with bitcoin suffering heavier losses. This trend continued over the weekend, with no news to alter investor sentiment.
Crypto Market Cap Drops $107 Billion to New Current Year Low
After a brief respite on Thursday and Friday, the total crypto market capitalization fell to a new year-on-year low on Saturday.
A drop of $107 billion saw the total crypto market capitalization fall to a new low of $762.83 billion for the current year.
It was also the lowest level since January 2021, the start of the 2021 bull run, and marked a fourth new week low for the current year.
Market headwinds continued to weigh on bitcoin and the broader crypto market. Investors still need to deviate from the Fed’s monetary policy on Wednesday. Fears of a global recession continue to weigh on investor sentiment.
The prolonged sell-off, following the collapse of TerraUSD (UST) and Terra LUNA, also raises the prospect of a significant change in the regulatory landscape.
Looking at the top ten, SOL bucked the trend, rising 4.2%.
ETH fell 8.5% below $1,000 for the first time since January 2021, with BNB slipping 8.7%.
BTC (-7.1), ADA (-6.6%), DOGE (-7.0%) and XRP (-4.3%) also recorded heavy losses.
In CoinMarketCap’s top 100, Polygon (MATIC) and Aave (AAVE) saw the heaviest losses, dropping 13.4% and 13.6% respectively.
On the stablecoins front, USDD moves were negative for the market, with a pullback below $0.97 raising further concerns about algorithmic stablecoins.
Despite the pullback in USDD, TRON (TRX) held firm, up 1.6%.
While the TRON DAO Reserve assured that USDD falling below $0.97 does not constitute an unanchor, regulatory chatter about the instability of stablecoins has drawn attention.
This week, the Federal Reserve sent out a monetary policy report discussing the fragilities of stablecoins. Increased regulatory scrutiny will remain a test for stablecoins and the broader crypto market.
Total Crypto Liquidations Reduced Following Fed Policy Decision
After improving from Tuesday’s high of $1 billion, with a drop to below $200 billion, liquidations have increased again.
From $210 million on Saturday morning, total liquidations were $567 million this morning.
In the past 12 hours, total liquidations were $325 million and $127 million in 4 hours, reflecting market conditions in Saturday afternoon’s session.
The one-hour selloffs reflected improving market conditions, however, reflected in the hourly total market cap chart below.
According to Coinglass, the one-hour liquidations amounted to $5.66 million.
While market conditions improved late in Saturday’s session, downside risks will likely persist for some time. Markets will need a catalyst to alter bearish sentiment, which now leaves bitcoin at risk of falling to $15,000.
Daily Crypto News Highlights
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Ethereum fell below $1,000 for the first time since January 2021.
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The SEC has filed objections as XRP investors await court ruling on documents related to Hinman’s speech.
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Following Wednesday’s rate hike, the US Federal Reserve raised concerns with Congress about the fragility of stablecoins.
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Coinbase was in the spotlight as investors filed a lawsuit over the sale of TerraUSD and Terra LUNA.
This article originally appeared on FX Empire
