Leading cryptocurrencies bounced back, while stocks fell on Tuesday, as the U.S. unemployment rate hit levels not seen since September 2021.
| Cryptocurrency | Gains +/- | Price (Recorded at 8:20 p.m. ET) |
|---|---|---|
| Bitcoin (CRYPTO: BTC) | +1.71% | $87,615.03 |
| Ethereum (CRYPTO: ETH) |
-0.10% | $2,954.33 |
| XRP (CRYPTO: XRP) | +2.11% | $1.92 |
| Solana (CRYPTO: SOL) | +1.87% | $128.93 |
| Dogecoin (CRYPTO: DOGE) | +1.81% | $0.1318 |
Bitcoin, Crypto Stocks Rally
Bitcoin climbed back to an intraday peak of $88,170 before easing off a bit overnight.
Ethereum, on the other hand, failed to break over the critical $3,000 resistance, with trading volume down 22% in the last 24 hours. XRP and Dogecoin also saw a relief rally.
Shares of cryptocurrency-linked stocks Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NASDAQ:COIN) closed up 3.34% and 1.42%, respectively, during the regular trading session.
Benzinga Edge delivers real-time stock alerts, trade ideas, and professional investing tools to help you navigate the market. Find out more about MSTR and BMNR here.
Roughly $260 million was liquidated from the cryptocurrency market over the last 24 hours, according to Coinglass, with long liquidations accounting for more than 50% of the total.
Bitcoin’s open interest fell 3.5% in the last 24 hours. An increase in spot price coming alongside a drop in open interest may indicate short covering i.e, buying back to close an open short position.
Top Gainers (24 Hours)
| Cryptocurrency (Market Cap>$100 M) | Gains +/- | Price (Recorded at 8:20 p.m. ET) |
| Fasttoken (FTN ) | +240.47% | $1.57 |
| Four (FORM ) | +40.13% | $0.4253 |
| Zeebu (ZBU ) | +14.78% | $0.6806 |
The global cryptocurrency market capitalization stood at $2.97 trillion, following an increase of 0.71% in the last 24 hours.
Stocks Edge Lower After Unemployment Rate Climbs
Major indexes closed lower on Tuesday. The Dow Jones Industrial Average fell 302.30 points, or 0.62%, to end at 48,114.26. The S&P 500 slid 0.24% to end at 6,800.26. The tech-heavy Nasdaq Composite was the silver lining, as it closed up 0.23% at 23,111.46.
The Bureau of Labor Statistics reported that nonfarm payrolls rose by 64,000 in November, higher than economists’ expectations of 50,000 jobs. Meanwhile, the unemployment rate climbed to 4.6%, the highest since September 2021 and up from 4.4% in September.
Notably, the odds of a 25 basis point rate cut in the Federal Reserve’s January meeting rose slightly from 24.4 to 25.5% in the past 24 hours, according to the CME FedWatch tool.
Ethereum Can Plunge To $2,000 If…
In a note shared with Benzinga, analysts at cryptocurrency payment company B2BINPAY tied Bitcoin’s ongoing struggles to a “renewed turn toward risk aversion” and greater correlation with technology stocks.
“Given the picture, our base case is a test of the $80,000–$82,000 range if risk aversion persists,” the analysts said. “A more stable recovery would likely require calmer conditions in U.S. equity markets, a slowdown in ETF outflows, and a move back toward the $95,000 area.”
Ali Martinez, a widely followed cryptocurrency analyst and trader, projected Ethereum’s decline to $2,000 or even $1,100 if the second-largest cryptocurrency closed December closed below $2,930
Photo Courtesy: Alexandru Nika on Shutterstock.com
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