Key Insights:
- It was a mixed Friday session for the crypto top ten, with MATIC and DOGE leading the losses, while XRP bucked the bearish trend.
- US economic indicators and the NASDAQ Composite Index were an afterthought as investors responded to the latest Silvergate Bank news.
- The crypto market cap tumbled by $41.03 billion, ending the day at $990.64 billion.
It was a mixed session for the crypto top ten on Friday. DOGE and MATIC led the top ten into the red. The bearish session saw BTC visit sub-$22,000 for the first time since February 14. However, XRP bucked the bearish trend.
US economic indicators and a bullish NASDAQ Composite Index failed to deliver support on Friday. In February, the all-important ISM Non-Manufacturing PMI slipped from 55.2 to 55.1 versus a forecasted 54.5. The employment sub-index impressed, rising from 50.0 to 54.0, reflecting current US labor market conditions.
While the stats supported a more hawkish Fed monetary policy outlook, the talk of slow and steady eased fears of the Fed pushing more aggressively to slow the economy and bring inflation to target. The NASDAQ Composite Index rallied by 1.97%.
Silvergate Bank News Sends the Crypto Market into the Deep Red
News of crypto clients cutting ties with Silvergate Bank shook investor sentiment. Leading crypto exchanges, including Coinbase, Crypto.com, Paxos, and Bitstamp, suspended transactions with the bank.
The Thursday moves came in response to Silvergate Bank delaying filing its annual reports on Wednesday. In the Wednesday announcement, Silvergate Bank cited the reasons for the delay. However, one statement likely forced crypto platforms to suspend Automated Clearing House (ACH) transfers and other business transactions.
“The Company is evaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements.”
The latest news comes at a difficult time for the crypto market, with regulatory and US lawmaker scrutiny intensifying.
The Day Ahead
Investors should continue to monitor the crypto news wires for regulatory activity and US lawmaker chatter. Binance, FTX, and Silvergate Bank updates need monitoring, with news from the ongoing SEC v Ripple case also likely to influence investor sentiment.
However, Fed chatter will also influence as investors look to steady the ship.
Crypto Market Sinks on Silvergate Bank News Updates
It was a bearish Friday session. The total crypto market cap tumbled from an early high of $1,033 billion to an early morning low of $969.75 billion before steadying.
Range-bound through the remainder of the day, the crypto market revisited the $995 billion handle before easing back. The late pullback left the crypto market cap at $990.64 billion, marking a $41.03 billion loss.
The Crypto Market Movers and Shakers from the Top Ten and Beyond
It was a mixed session for the crypto top ten.
DOGE (-4.96), BTC (-4.73%), ETH (-4.75%), and MATIC (-4.73%) led the way down, with ADA (-2.28%) and BNB (-3.13%) also struggling
However, XRP bucked the bearish trend, rising by 0.02%.
From the CoinMarketCap top 100, it was a bearish session.
Conflux (CFX) slid by 14.42%, with dYdX (DYDX) and singularityNET (AGIX) seeing losses of 12.96% and 13.24%, respectively.
However, EOS (EOS) rallied by 6.79%, with immutableX (IMX) and trust wallet token (TWT) seeing gains of 2.52% and 1.45%, respectively. The three were among a handful of cryptos to avoid the red on Friday.
24-Hour Liquidations Surge on Silvergate Bank Angst
Over 24 hours, crypto liquidations surged to above-normal levels. Long positions had a higher share of liquidations, accounting for 92.81% of total crypto liquidations. This morning, 24-hour liquidations stood at $235.41 million, up from $53.04 million on Friday morning (UTC).
Liquidated traders over the last 24 hours were higher. This morning, liquidated traders stood at 76,153 versus 24,027 on Friday morning. Crypto liquidations were lower over 12 hours while higher over four hours and one hour.
According to Coinglass, 12-hour liquidations stood at $19.83 million, down from $26.99 million on Friday morning. However, four-hour liquidations rose from $3.74 million to $7.29 million, with one-hour liquidations up from $0.415 million to $1.65 million. The drawdown occurred within the first two hours of the Friday session, leaving the 12-, four-, and one-hour liquidations unaffected.
The chart below shows market conditions throughout the session.
