Leading cryptocurrencies edged higher on Wednesday, but overall market sentiment remained cautious and marked by “Fear.”
| Cryptocurrency | Gains +/- | Price (Recorded at 9:15 p.m. ET) |
|---|---|---|
| Bitcoin (CRYPTO: BTC) | +0.82% | $113,254.92 |
| Ethereum (CRYPTO: ETH) | -1.42% | $4,124.28 |
| XRP (CRYPTO: XRP) | +2.82% | $2.91 |
| Solana (CRYPTO: SOL) | -1.65% | $210.87 |
| Dogecoin (CRYPTO: DOGE) | +0.29% | $0.2398 |
Bitcoin Rebounds, Ethereum Falls
Bitcoin recovered slightly from the sharp sell-off earlier this week, nearly breaking $114,000 on the day.
Ethereum, on the other hand, dived further, hitting an intraday low of $4,081.35. The second-largest cryptocurrency is down 16.82% from its all-time high last month.
Bitcoin’s market dominance climbed to 58%, while altcoins, excluding Ethereum, accounted for more than 29%.
Nearly $270 million was liquidated from the cryptocurrency market in the last 24 hours, with long liquidations accounting for $186 million.
Bitcoin’s open interest dropped 1.35% in the last 24 hours. A drop in open interest coupled with a price increase typically signals that short sellers are closing their positions. Meanwhile, over 55% of Binance traders with open BTC positions were long Bitcoin.
"Fear" sentiment prevailed in the cryptocurrency market, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
| Cryptocurrency (Market Cap>$100 M)) | Gains +/- | Price (Recorded at 9:15 p.m. ET) |
|---|---|---|
| Concordium (CCD) | +118.53% | $0.01855 |
| AWE (AWE) | +35.15% | $0.1205 |
| Omni Network (OMNI) | +33.66% | $1.62 |
The global cryptocurrency market capitalization stood at $3.90 trillion, following a modest increase of 0.44% in the last 24 hours.
Stocks Edge Lower Ahead Of Key Macro Data Release
Stocks dipped further on Wednesday. The Dow Jones Industrial Average fell 171.50 points, or 0.37%, to end at 46,121.28. The S&P 500 lost 0.28% to finish at 6,637.97, while the tech-heavy Nasdaq Composite closed down 0.34% at 22,497.86.
The sell-off comes ahead of the weekly jobless claims data and the all-important personal consumption expenditures price index, as investors look for clues on monetary policy following last week’s quarter-point rate cut.
Seasonal Crypto Volatility Not A ‘Concern’
Chris Kline, the co-founder and COO of Bitcoin IRA, said in a note to Benzinga that the seasonal volatility shouldn’t "concern" long-term cryptocurrency investors, despite the September correction and Fed's rate cut falling short of expectations.
Kline predicted that things may change drastically in October, a month which has historically shown "strong performance patterns."
"We’re positioned at the threshold of a significant institutional adoption wave that will dwarf current market fluctuations," the analyst added.
On-chain analytics firm CryptoQuant said that Bitcoin's implied volatility has dropped to its lowest level since 2023, a point that previously preceded a historic rally of over 325%.
Moreover, with exchange reserves at multi-year lows, the Market Value to Realized Value ratio in the neutral zone and funding rates staying balanced, it was more like a "calm before the storm," CryptoQuant added.
Photo Courtesy: Shutterstock AI on Shutterstock.com
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