Leading cryptocurrencies tanked on Wednesday after the Federal Reserve’s hawkish meeting minutes drove Treasury yields higher.
| Cryptocurrency | 24-Hour Gains +/- | Price (Recorded at 9:26 p.m. EDT) |
|---|---|---|
| Bitcoin (CRYPTO: BTC) | -2.60% | $83,174 |
| Ethereum (CRYPTO: ETH) |
-4.20% | $2,576.32 |
| XRP (CRYPTO: XRP) | -4.80% | $1.42 |
| Solana (CRYPTO: SOL) | -3.20% | $116.31 |
| Dogecoin (CRYPTO: DOGE) | -4.80% | $0.08918 |
Crypto Market in Red
Bitcoin sank below $83,000, while Ethereum lost its $2,600 support amid broader cryptocurrency sell-offs.
Cryptocurrency-related stocks also fell, with Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NYSE:BMNR) closing down 6.79% and 5.90%, respectively.
Cryptocurrency liquidations surged over $700 million over the last 24 hours, with $646 million in bullish long positions alone wiped out, according to Coinglass data.
Bitcoin’s open interest dipped 1.60% over the last 24 hours. Binance derivatives traders, including both retail and whales, increased their long exposure to the apex cryptocurrency.
Top Gainers (24 Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 9:26 p.m. EDT) |
| Raydium (RAY) | +12.70% | $2.43 |
| Bitway (BTW) | +11.60% | $1.36 |
| NEAR Protocol (NEAR) | +5.40% | $5.37 |
Stocks Correct After Fed Signals Hawkish Outlook
Stocks descended from record highs on Wednesday. The Dow Jones Industrial Average retreated 341.41 points, or 0.66%, to close at 51,179.87. The S&P 500 slipped 0.22% to end at 7,801.77. The tech-focused Nasdaq Composite fell 1.32% to end at 27,538.69.
Minutes of the September meeting showed the Fed united on raising rates and leaning toward another hike by year-end. Traders currently assign only an 18% probability to a rate hike at the central bank’s October meeting, but more than a 66% probability to a hike at the December meeting, according to the CME FedWatch tool.
The 10-year Treasury yield rose to 5.36%, its highest since April 2002. Returns on the 30-year Treasury notes jumped to 5.73%.
Bitcoin Bulls to Return?
Ali Martinez, a widely followed cryptocurrency analyst and trader, noticed a “Buy Signal” on Bitcoin’s hourly chart at the $83,000 support level using the TD Sequential indicator.
“The correction over the past 24 hours was preceded by a sell signal from the same indicator,” Martinez said. “Now, with the TD Sequential flipping bullish at support, I’m watching closely for a potential BTC rebound.”
The TD Sequential indicator is a technical analysis tool that helps traders identify potential price reversals and exhaustion patterns.
Michaël van de Poppe, another popular cryptocurrency commentator, predicted a “larger form” of Bitcoin correction involving a downside sweep of long-side liquidity followed by a reversal.
Phenomenal entry opportunity,” he added.
Photo Courtesy: vinnstock on Shutterstock.com
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