It was a bearish session on Thursday for the top ten crypto, with ADA leading the losses. US economic indicators and regulatory risk overshadowed dovish talk from the Fed to leave the broader crypto market in the red. The crypto market capitalization fell $8.71 billion, ending the day at $1.032 billion.
It was a bearish session for the top ten crypto on Thursday. ADA brought the top ten to the red. The bearish session left BTC below the $24,000 level for the fifth time in six sessions.
The US economic calendar drew a lot of interest on Thursday, with the US labor market taking center stage. Unit labor costs rose 3.2% in the fourth quarter, up from 2.0% in the third quarter, and initial jobless claims fell from 192,000 to 190,000. The latest labor market figures supported the more aggressive trajectory of interest rates from the Fed to bring inflation to the target.
Crypto investors responded to the statistics, with crypto market capitalization falling to a session low before finding support from the Federal Reserve. FOMC member Bostic favored a 25 basis point rate hike, boosting demand for riskier assets.
The NASDAQ Composite Index rose 0.73% on Thursday. This morning, the NASDAQ mini is down 25 points.
Crypto Market Scrutiny Tests Buyer Appetite
However, the crypto market news wires led the crypto market to decouple from the NASDAQ Composite Index.
Renewed fears of a Silvergate Bank collapse tested investor confidence. Hopes of an end to the crypto winter have been dashed in the wake of the FTX bankruptcy. This week, the crypto bank delayed the release of its annual report.
Regulatory scrutiny from US legislators added to the bearish mood. On Thursday, SEC Chairman Gary Gensler took the opportunity to take aim at the crypto market during an SEC Investor Advisory Committee Meeting. The SEC chairman focused on custody issues and the mix of client assets and investor losses.
US lawmakers added to the gloomy mood. A letter from US senators from both sides of the aisle to Binance drew a lot of interest.
Addressed to Binance CEO CZ, the US senators asked Binance to share “information on the growing concerns about finance, risk management, and regulatory compliance for Binance, Binance.US, and other related entities.”
Cryptomarket Came Under Pressure Over SEC and Legislator Talk
A bullish start to the day saw the crypto market capitalization surge to an early high of $1.051 billion. However, US economic indicators, the SEC and US Senators sent the crypto market capitalization to a session low of $1.028 billion.
A partial recovery left the crypto market down $8.71 billion to $1.032 billion.
It was a bearish session for the top ten crypto. ADA slid 2.50% to lead the decline, with DOGE (-1.34%), ETH (-1.04%), MATIC (-1.76%), and XRP (-1.62%) struggling. BTC (-0.74%) and BNB (-0.96%) posted relatively modest losses.
By Audy Castaneda
