Bitcoin, Ethereum, XRP, Dogecoin Slide Even as CPI Figures Ease Rate Hike Odds: Analyst Says BTC 'Displaying a Condition' Associated With Market Bottoms
Strategy MSTR | 0.00 | |
BitMine Immersion Technologies BMNR | 0.00 |
Leading cryptocurrencies fell, even as stocks rallied on Wednesday as investors weighed the latest consumer inflation numbers that came in line with expectations.
| Cryptocurrency | 24-Hour Gains +/- | Price (Recorded at 9:35 p.m. EDT) |
|---|---|---|
| Bitcoin (CRYPTO: BTC) | -0.23% | $63,424.63.02 |
| Ethereum (CRYPTO: ETH) |
-0.38% | $1,875.68 |
| XRP (CRYPTO: XRP) | -1.88% | $1.00 |
| Solana (CRYPTO: SOL) | -0.92% | $75.63 |
| Dogecoin (CRYPTO: DOGE) | -3.24% | $0.06987 |
Crypto Market Retreats Further
Bitcoin and Ethereum recorded sharp selling pressure, while XRP and Dogecoin also traded in the red on Wednesday.
Cryptocurrency-related stocks also fell, with Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NYSE:BMNR) closing down 1.31% and 1.73%, respectively.
Over the past 24 hours, more than $175 million in crypto positions were liquidated, with short sellers accounting for $93 million of the losses, according to Coinglass data.
Bitcoin’s open interest rose 0.49% over the last 24 hours. An increase in open interest, along with a price decrease, typically indicates that short positions are being built up.
"Fear" sentiment prevailed in the market, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
| Cryptocurrency (Market Cap>$100 M) | Gains +/- | Price (Recorded at 9:35 p.m. EDT) |
| Capricorn (APR) | +137.97% | $0.4950 |
| Cysic (CYS) | +36.06% | $1.63 |
| Bitway (BTW) | +22.28% | $0.2544 |
The global cryptocurrency market capitalization stood at $2.17 trillion, following a dip of 0.79% over the last 24 hours.
Stocks Rally After CPI Report
Major indexes lifted on Wednesday. The S&P 500 rose 0.26% to end at 7,748.50, while the tech-focused Nasdaq Composite gained 0.54% to close at 26,588.49. The Dow Jones Industrial Average, meanwhile, fell 0.04%, or 21.58 points, to close at 53,770.27.
The July Consumer Price Index rose 3.4% from a year earlier, matching expectations, while core inflation eased to 2.5%, also as expected.
Meanwhile, the odds of an interest rate hike in September fell to 40% from 48% the day before, according to the CME Fedwatch tool.
The Anatomy of Bitcoin’s Bottom
Michaël van de Poppe, a widely followed cryptocurrency analyst and trader, said Bitcoin risks breaking down to $60,000 if it fails to hold current support near $63,500
“The final level of support is that area; if that doesn’t happen, we’re very likely to be sweeping the lows again,” the analyst projected.
On-chain analytics firm CryptoQuant observes that Bitcoin’s losses have spread beyond speculative traders and are now being borne by long-term holders.
Historically, at each significant cycle bottom, long-term holders have been sitting on more severe unrealized losses than the broader market, the research firm stated.
“Bitcoin is displaying a condition repeatedly associated with macro bottoms, but not yet the emotional and financial exhaustion that made previous bottoms unmistakable,” CryptoQuant added.
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