Bitcoin Breaks $94,000 Ahead Of Fed Rate Cut Decision; Ethereum, Dogecoin, XRP Rise: Analyst Hails 'Great Move,' Says BTC On 'Bullish Trajectory'
Leading cryptocurrencies surged on Tuesday, as Wall Street priced in strong expectations of a 25-basis-point rate cut by the Federal Reserve.
| Cryptocurrency | Gains +/- | Price (Recorded at 8:10 p.m. ET) |
|---|---|---|
| Bitcoin (CRYPTO: BTC) | +2.06% | $92,223.30 |
| Ethereum (CRYPTO: ETH) |
+6.35% | $3,310.83 |
| XRP (CRYPTO: XRP) | +1.05% | $2.09 |
| Solana (CRYPTO: SOL) | +3.26% | $137.39 |
| Dogecoin (CRYPTO: DOGE) | +3.52% | $0.1466 |
Crypto Market Rallies
Bitcoin staged a strong recovery, surging back above $94,000 after over three weeks. Trading volume spiked 23% over the last 24 hours, indicating high buying pressure. The coin, however, gave up some gains as the day progressed.
Ethereum hit an intraday high of $3,395, a level not seen since nearly a month. Trading volume for the second-largest cryptocurrency surged 30%.
Shares of cryptocurrency-linked stocks such as Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NYSE:BMNR) closed up 2.89% and 9.40%, respectively, during the regular trading session.
Benzinga Edge delivers real-time stock alerts, trade ideas, and professional investing tools to help you navigate the market. Find out more about MSTR and BMNR here.
Cryptocurrency liquidations hit $436 million over the last 24 hours, according to Coinglass, out of which $308 million were erased from short positions alone.
Moreover, roughly $436 million in Bitcoin short positions risked liquidation if the leading cryptocurrency reclaimed $96,000.
About 60% of Binance's traders with open BTC positions were betting on the asset's price increase, according to the Long/Short Ratio.
The market sentiment improved from "Extreme Fear" to "Fear" following the uptick, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
| Cryptocurrency (Market Cap>$100 M) | Gains +/- | Price (Recorded at 8:10 p.m. ET) |
|---|---|---|
| pippin (PIPPIN ) | +69.90% | $0.3042 |
| Folks Finance (FOLKS) |
+43.29% | $15.04 |
| River (RIVER ) | +24.63% | $5.28 |
The global cryptocurrency market capitalization stood at $3.15 trillion, following an increase of 2.29% in the last 24 hours.
Rate Cut A Done Deal Or…?
Major stock averages closed lower on Tuesday. The Dow Jones Industrial Average dipped 179.03 points, or 0.38%, to finish at 47,560.29. The S&P 500 was little changed, falling 0.09% to end at 6,840.51. The tech-focused Nasdaq Composite was the silver lining, lifting 0.13% to settle at 23,576.49.
Traders are pricing in a roughly 88% chance of a 25-basis-point cut at Wednesday’s Federal Reserve meeting, according to the CME Fed Watch tool.
Italian investment bank UniCredit, meanwhile, has diverged from the nearly unanimous expectation, forecasting that policymakers will keep rates unchanged.
Why This Support Is Key For Bitcoin
Blockchain analytics firm Santiment noted that Bitcoin's rebound got retail traders excited, with calls for “higher” & “above” exploding on social media.
"Markets move opposite to the small traders’ behavior," the firm said, adding that prices typically "correct" as retail tries to buy more on the way up.
Widely followed cryptocurrency analyst and trader Michaël van de Poppe expected the risk-on appetite to increase after a “great move” by Bitcoin.
“It’s still following the bullish scenario, in which the breakout above $92,000 might be a signal,” the analyst added.
"Going into FOMC night tomorrow, I’d love to see $91,500-$92,000 held as support," Van De Poppe stated. "If that does, I don’t see a reason why we’re not at least going to be testing the $100,000 areas from here."
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