Cryptocurrency Market Update: Bitcoin Rangebound, Ethereum and Dogecoin Gain
Bitcoin remained rangebound on Wednesday, while Ethereum and Dogecoin saw gains as investors eagerly awaited incoming inflation numbers to potentially shake up the cryptocurrency market.
Bitcoin briefly spiked above $59,000 in the early hours before settling back down to the $57,000 range by afternoon. The cryptocurrency has been on a downward trend for the past month, a stark contrast to the $70,000 level it reached in June.
Ethereum also experienced a rise, surpassing $3,100 during early trading hours before stabilizing in the $3,000s.
Despite recent setbacks, a new analysis suggests that Bitcoin’s decline may be limited, even after the German government reportedly sold off some of its Bitcoin holdings.
Over $93 million in open positions was liquidated in the last 24 hours, with an almost equal number of long and short bets being closed out. Bitcoin’s Open Interest rose slightly by 0.73%, reflecting the price movement, while Ethereum’s OI surged by 2.22%, indicating increased activity in the derivatives market.
According to Coinglass, nearly 60% of the market remains bullish on Bitcoin, with 26% holding a negative view and 15% remaining neutral.
In the past 24 hours, top gainers in the cryptocurrency market included Stacks (STX) with a 9.66% increase, zkSync (ZK) with a 7.72% gain, and JasmyCoin (JASMY) with a 6.78% rise.
The global cryptocurrency market cap currently stands at $2.12 trillion, with a slight 0.30% increase in the last day.
Stocks also rallied on Wednesday, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all reaching new highs. The gains come ahead of the release of key inflation data, which is expected to have a significant impact on both the cryptocurrency and stock markets.
Popular cryptocurrency trader Kevin noted a neutral/bearish bias for Bitcoin until it closes above $65,300 for a sustained period. Another analyst, Bob Loukas, highlighted the potential for an Ethereum season after months of underperformance compared to Bitcoin.
Overall, the cryptocurrency market remains dynamic and investors are eagerly anticipating the impact of upcoming economic data releases on market movements.
