Leading cryptocurrencies weakened, while stocks rallied sharply on Wednesday, as the Trump administration reportedly moves closer to a military conflict with Iran.
Bitcoin wobbled between the high $65,000s and the low $68,000s, while trading volume dipped over the last 24 hours.
Ethereum also traded with low volatility, confined to a narrow range just under $2,000. XRP and Dogecoin recorded sharp 24-hour drops.
Shares of cryptocurrency-related companies, including Strategy Inc.(NASDAQ:MSTR) and BitMine Immersion Technologies, Inc.(NYSE:BMNR), closed down 3.89% and 3,86%, respectively.
Over $220 million was liquidated from the market in the last 24 hours, according to Coinglass, with long liquidations again bearing the brunt of the losses.
Bitcoin’s open interest rose 1.31% over the past 24 hours. A rising open interest paired with falling prices often signals short buildup, reflecting strong bearish sentiment.
The "Extreme Fear" sentiment gripped the market, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
Cryptocurrency (Market Cap>$100 M)
Gains +/-
Price (Recorded at 8:25 p.m. ET)
AWE (AWE)
+22.39%
$0.1041
Helium (HNT)
+18.19%
$1.67
World Liberty Financial (WLFI)
+11.82%
$0.1187
The global cryptocurrency market capitalization stood at $2.32 trillion, following a decline of 1.91% over the past 24 hours.
Stocks Rise, Precious Metals Stagnate
Stocks rallied sharply on Wednesday. The Dow Jones Industrial Average lifted 129.47 points, or 0.26%, to end at 49,662.66.. The S&P 500 rose 0.56% to end at 6,881.31, while the tech-heavy Nasdaq Composite gained 0.78% to close at 22,753.63.
Defense-related stocks surged after a report stated that the Trump administration is moving closer to a “major” military operation against Iran.
SPDR S&P Aerospace & Defense ETF(NYSE:XAR) and Global X Defense Tech ETF(NYSE:SHLD), closed up 1.76% and 2.56%, respectively.
Precious metals stayed range-bound, as spot gold traded down 0.33% at $4,961 an ounce, while spot silver 0.74% to $76.61 an ounce.
Is Bottom In For Bitcoin?
Widely followed cryptocurrency analyst and trader Ali Martinez compared Bitcoin's current market with the 2022 drawdown, forecasting further declines to at least $51,000, while questioning those who are declaring "bottom is in."
Michaël van de Poppe, another prominent cryptocurrency commentator, anticipated a "big move on the horizon" for Bitcoin, following a period of low volatility.
"If we dip, I’ll be a big buyer, for sure," the analyst said. "If we go back upwards, I’ll start taking some profits on a test at $80,000-$85,000 to be trading the trend."
The volatility on #Bitcoin is the lowest it has been since the crash.
That means; there's a big move on the horizon.
If we dip, I'll be a big buyer, for sure.
If we go back upwards, I'll start taking some profits on a test at $80-85K to be trading the trend.
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