Crypto Market Daily Highlights: Fed Fear and the NASDAQ Index Weigh

The top ten cryptocurrency index had a gloomy session on Tuesday. The descent was guided by MATIC. Bitcoin returned to the $25,000 handle for the fifth time in six sessions despite the negative session.

Fed On Tuesday, fear returned as markets focused on the FOMC meeting minutes that are due later today. Riskier assets were impacted by market concerns about longer-term increases. The S&P 500 and Dow both had declines of 2.06% and 2.00%, respectively, while the NASDAQ Composite Index fell by 2.50%, marking its worst performance of 2023.

Tuesday's US economic data provided more fuel for the Fed's fire. The services PMI increased from 46.8 to 50.5 instead of rising to 47.2 as predicted, providing the Fed's rate-hiking hawks more justification to pursue an aggressive interest rate trajectory to bring inflation to the desired level.

The news that Polygon Network was laying off employees was negative for the market, while plans to offer crypto trading to retail consumers in Hong Kong and the restart of withdrawals at FTX Japan were favorable. The implications of the protracted crypto winter, however, were emphasized by Coinbase's (COIN) quarterly earnings, which also reminded the markets of the difficult path ahead and the rising regulatory scrutiny.

The Coming Day

Investors should keep an eye on the cryptocurrency news wires for anything that could shift the market. The changes from FTX, Genesis, and Silvergate Bank must be taken into account, but Binance will continue to be the major focus. Regulatory activity and congressional chitchat, however, will continue to be the main drivers.

The NASDAQ Composite Index, Fed chitchat, and the minutes of the FOMC meeting will have an impact on the afternoon session. The FOMC meeting minutes after the Tuesday sell-off may highlight how high and for how long, which will probably put investor sentiment to the test.

This morning's increase in the NASDAQ mini indicated a flat start to the American session.

As Fed jitters return, the cryptocurrency market falls.

Tuesday's session was rocky. During a positive morning, the crypto market cap increased to a high of $1,100 billion before turning negative. The reversal caused the market valuation of cryptocurrencies to fall to a late low of $1,048 billion.

The crypto market cap did, however, find late support, ending the day at $1,065 billion and cutting the loss from the session to $18.80 billion.