Leading cryptocurrencies sank alongside stocks on Wednesday as higher-than-expected consumer inflation raised rate hike odds.

Cryptocurrency 24-Hour Gains +/- Price (Recorded at 9:28 p.m. EDT)
Bitcoin (CRYPTO: BTC) -1.90% $81,549.33
Ethereum (CRYPTO: ETH)
               
-3.30% $2,412.39
XRP (CRYPTO: XRP)                          -2.90% $1.32
Solana (CRYPTO: SOL)                          -2.40% $104.14
Dogecoin (CRYPTO: DOGE)              -3.30% $0.08143

Crypto Market Pressured

Bitcoin dropped sharply from $83,000 into the low $81,000s, while Ethereum fell below $2,400.

Cryptocurrency-linked stocks also plummeted, with Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NYSE:BMNR) closing down 5.87% and 5.28%, respectively. 

The cryptocurrency market saw over $450 million in liquidations in the last 24 hours, almost $400 million of those being bullish long bets, according to Coinglass data.

Bitcoin’s open interest spiked 1.41% over the last 24 hours. An increase in open interest, accompanied by a drop in the asset’s price, typically indicates that short sellers are actively entering the market and selling contracts.

Top Gainers (24 Hours) 

Cryptocurrency Gains +/- Price (Recorded at 9:28 p.m. EDT)
Pyth Network (PYTH)       +6.0%     $0.08422
Bitway (BTW)                    +3.50%     $2.34
Figure Heloc (FIGR_HELOC)               +1.30%     $1.04

The global cryptocurrency market capitalization stood at $2.84 trillion, contracting by 2.20% in the last 24 hours.

Stocks Drop After Hot Inflation Report

Stocks extended the decline on Wednesday. The Dow Jones Industrial Average shed 48.62 points, or 0.09%, to close at 51,621.48. The S&P 500 slipped 1.11% to end at 7,718.94, while the Nasdaq Composite fell 1.88% to close at 26,692.87.

Consumer Price Index rose from 3.4% to 3.7% year-over-year in September, above the 3.6% economists expected. Core CPI also came in above expectations at 2.6%.

Investors still assign a 75% probability that rates will remain unchanged in October, while the odds of a quarter-point cut in December stand at 66%, according to the CME FedWatch tool.

Bullish Mood Intact

On-chain analytics firm CryptoQuant reported that the majority of analysts are now bullish on Bitcoin, citing its Analyst Consensus Index.

“84% of 164 analysts are now bullish, up from 37% in July. That’s more than at the same stage of the 2023 bull market, after half the price gain,” the firm added.

Daan Crypto Trades, a widely followed trader and chartist, notes Bitcoin has been range-bound around a major horizontal support and resistance near $82,000 for roughly 50 days, with choppy intraday action

“This was a very choppy time period last quarter in July as well,” the analyst added. “We’ll see a decisive break and move again soon enough.”

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