Jan 16, 2023 10:52
The top ten cryptocurrencies had a mixed Sunday session, with ETH bucking the trend while the larger market ended a seven-day losing streak. Profit-taking and regulatory risk contributed to a turbulent Sunday session. The crypto market cap declined by $0.881 billion to close the day at $938.70 billion. It was a mixed afternoon for the crypto top 10 on Sunday. ETH bucked the top ten trend. Notably, BTC revisited $21,000 for the second time since November 7 and the bankruptcy of FTX.
On Sunday, neither external market forces nor crypto market catalysts contributed to the eight-session winning streak. With the US markets closed today, profit-taking left the larger crypto market with a small loss.
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Regulatory risk almost certainly contributed to the decline. On Thursday, US politicians were back in the spotlight. Reportedly, House Republicans intend to form a Subcommittee to oversee the digital asset market.
The disclosure coincides with the SEC bringing accusations against Genesis and Gemini for the unregistered offer and sale of crypto asset securities through the Gemini Earn lending program.
There are currently no US economic indicators for investors to evaluate. The lack of statistics will leave the crypto market to the discretion of crypto news outlets and FOMC member talk. Regulatory noise and hawkish FOMC member rhetoric may test current buyer appetite.
This week, US business earnings, economic indicators, and FOMC member talk will likely affect investor sentiment, as measured by the NASDAQ Index. Bets on a 25-basis-point Fed rate hike and a decline in FTX contagion risk continue to support the crypto market.