Key Insights:
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It was a bearish start to the month for the crypto market, with the top ten cryptos seeing heavy losses.
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A pickup in US manufacturing sector activity led investors to bet on a more aggressive Fed interest rate path to curb inflation.
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Wednesday’s sell-off led the total market cap down by $100 billion to $1,196 billion before support kicked in.
It was a bearish Wednesday session for the crypto market, with the top ten starting June with heavy losses.
The sell-off continued on from a bearish month of May, driven by the collapse of TerraUSD (UST) and Terra LUNA.
The bearish session also ended a four-day winning streak for a number of the crypto majors, including bitcoin (BTC).
Market reaction to economic data from the US did the damage, with bitcoin and the broader market tracking the NASDAQ 100 into the red.
Crypto Market Cap Slumps by $100 Billion in the Bearish Session
On Wednesday, the total crypto market cap tumbled by $100 billion to a day low of $1,196 billion before support kicked in.
24-hour crypto liquidation numbers for Wednesday reflected the market angst.
According to Coinglass, 24-hour total liquidations stood at $593.19 million this morning, up from a Wednesday morning $229.73 million. However, liquidations stood at $5.91 million over the hour, reflecting improved market conditions at the turn of the day.
From the crypto top ten, SOL slumped by 12.39% to lead the way down, with ADA sliding by 11.98%.
BNB (-6.33% ), BTC (-6.27%), ETH (-6.42%), DOGE (-5.68%) and XRP (-5.60%) also struggled.
Looking at the top 100, Waves (WAVES) bucked the broader market trend, with a modest 2.61% gain.
Bitcoin Tracked the NASDAQ 100 Response to US Economic Data
After a range-bound morning session, economic data from the US hit the US equity and the crypto markets.
The preferred US ISM Manufacturing PMI increased from 55.4 to 56.1 in May. From a Fed monetary policy perspective, the numbers supported the more hawkish outlook on Fed monetary policy to curb inflation.
After decoupling from the NASDAQ last week, a recoupling was evident at the turn of the month.
At the time of writing, the NASDAQ 100 mini was up 6.25 points, with bitcoin down 0.19% to $29,734.
Away from the Crypto Moves,
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The SEC claims of attorney-client privilege for the Hinman speech-related documents are to be discussed at a scheduled June 7 conference.
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Tech experts and academics sent a letter to US lawmakers to counter crypto industry lobbying.
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The Sandbox (SAND) and People of Crypto Lab (POC) take Pride Month to the metaverse.
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FTX seeks a derivatives brokerage license in a Goldman Sachs tie-up.
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BNB and TRX were the best crypto performers in May amidst a broader market reversal.