Leading cryptocurrencies corrected on Wednesday as hot macro data signaled the chance of another rate hike.
Crypto Market Reverses
Bitcoin descended from $87,000, hitting an intraday low of $83,654.39. Ethereum also retreated to $2,600, while XRP and Dogecoin recorded sharper declines
Cryptocurrency-related stocks also fell, with Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NYSE:BMNR) closing down 3.07% and 4.52%, respectively.
Over $540 million was liquidated from the cryptocurrency market in the last 24 hours, with long positions taking the heaviest losses, according to Coinglass data.
Bitcoin’s open interest plummeted 6.63% over the last 24 hours. BTC’s Long/Short ratio dipped below 1, meaning a large number of traders are actively taking short positions.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.96 trillion, down 2.60% in the last 24 hours.
Stocks Plunge As Rate Hike Bets Spike
Stocks faced heavy sell-offs on Wednesday. The Dow Jones Industrial Average fell 352.10 points, or 0.68%, to end at 51,511.59. The S&P 500 slid 0.75% to end at 7,706.03, while the tech-heavy Nasdaq Composite dropped 1.13% to settle at 26,936.04.
The yield on the 10-year Treasury note surged to its highest level since 2007 after the latest Purchasing Managers’ Index readings came in higher than expected.
Traders are now pricing in a nearly 70% chance of another 25-basis-point rate hike next month, according to the CME FedWatch tool.
A Dip Before Rip?
Ali Martinez, a widely followed cryptocurrency analyst and trader, flagged a “double bottom” pattern on Bitcoin’s daily chart, suggesting the $82,500 horizontal neckline will remain as a key support.
“The target remains $100,000,” Martinez added.
On-chain analytics firm Santiment noted that Bitcoin wallets holding 100-1,000 BTC have boosted their holdings by 2.22% over the last two months.
“Santiment’s five-year analysis found 100-1,000 BTC wallets particularly have correlated quite closely with crypto market direction, with accumulation often appearing before or during stronger price periods,” the firm stated.
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