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.”
Photo: KateStock / Shutterstock
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