Leading cryptocurrencies rallied on Wednesday, despite hawkish Federal Reserve minutes dampening hopes for rate cuts.
| Cryptocurrency | Gains +/- | Price (Recorded at 9:20 p.m. ET) |
|---|---|---|
| Bitcoin (CRYPTO: BTC) | +0.73% | $114,093.67 |
|
Ethereum (CRYPTO: ETH) |
+4.78% | $4,306.00 |
| XRP (CRYPTO: XRP) | +1.78% | $2.93 |
| Solana (CRYPTO: SOL) | +4.89% | $187.07 |
| Dogecoin (CRYPTO: DOGE) | +4.96% | $0.2208 |
Sentiment Improves From ‘Fear’ To ‘Neutral’
Bitcoin reentered the $114,000 region, a day after tumbling below $113,000. Ethereum made a stronger rebound, rising to an intraday high of $4,376.79 after plummeting to $4,070.54 the previous day.
Ethereum's dominance rose to 13.4%, the highest since mid-November 2024, while Bitcoin's market share narrowed to 58.6%.
Over $340 million was liquidated from the cryptocurrency market in the last 24 hours, with bearish short traders losing $217 million.
Moreover, about $530 million in Bitcoin shorts risked liquidation if the apex cryptocurrency surges to $117,000.
Bitcoin's open interest rose 0.53% over the last 24 hours to $80.76 billion. Meanwhile, over 60% of Binance traders with open BTC positions were long as of the time of this writing.
The market sentiment flipped from "Fear" to "Neutral," according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 9:20 p.m. ET) |
|---|---|---|
| OKB (OKB) | +40.82% | $177.49 |
|
Conflux (CFX) |
+15.74% | $0.1932 |
| Morpho (MORPHO) | +12.21% | $2.26 |
The global cryptocurrency market capitalization stood at $3.88 trillion, following an increase of 2.05% in the last 24 hours.
Fed Minutes Dampen Rate Cut Hopes
Stocks slid further on Wednesday. The S&P 500 fell 0.24% to close at 6,395.78. The tech-focused Nasdaq Composite dipped 0.67% to finish at 21,172.86. The Dow Jones Industrial Average remained the outlier, closing up 0.04% at 44,938.31.
The Fed indicated that inflation risks remain “considerable” due to the uncertain impact of trade tariffs, pouring cold water on rate cut expectations, according to minutes from the central bank's July meeting.
The likelihood that the central bank cuts interest rates during its September meeting dropped to 81.% from 86.6% the day before, according to the CME FedWatch tool.
Investors are looking forward to Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium on Friday for further cues on monetary policy.
Key Support Levels For BTC, ETH
On-chain analytics firm CryptoQuant stated that Bitcoin's market sentiment has switched from extra bullish to a "bullish cooldown."
"This shift signals that while the market remains constructive, the strong bullish momentum has faded, consistent with the recent plateau in price," CryptoQuant added.
However, the firm noted that the downside risk is limited, with a probable support level of $110,000.
Widely followed cryptocurrency analyst Ali Martinez flagged $4,000 and $3,700 as the key support level for Ethereum.
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Photo courtesy: Volodymyr Maksymchuk on Shutterstock.com
