Leading cryptocurrencies rose alongside stocks on Wednesday as President Donald Trump denied that he plans to remove Federal Reserve Chair Jerome Powell.
| Cryptocurrency | Gains +/- | Price (Recorded at 10:50 p.m. ET) |
|---|---|---|
| Bitcoin (CRYPTO: BTC) | +0.85% | $118,233.42 |
| Ethereum (CRYPTO: ETH) | +7.29% | $3,346.01 |
| Dogecoin (CRYPTO: DOGE) | +8.82% | $0.2139 |
What Happened: Bitcoin topped $120,000 in the evening before plummeting to a low of $117,255.02 overnight, even as trading volume dipped 21% in the last 24 hours.
The so-called ';Crypto Week' continued to hit roadblocks due to disagreements among GOP lawmakers regarding key cryptocurrency bills.
Ethereum recorded a steeper spike, surging past the $3,000–$3,400 resistance zone. Institutional flows supported the rally, with Cathie Wood's Ark Invest scooping a significant number of shares of 3iQ Ether Staking ETF (ETHQ.U).
The rally hit bearish traders, with nearly $300 million in short positions getting erased in the last 24 hours.
Bitcoin's open interest rose marginally by 0.58% in the last 24 hours, while funds locked in Ethereum's derivatives jumped 4%. Meanwhile, the majority of Binance traders with open BTC positions were short as of this writing.
Top Gainers (24 Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 10:50 p.m. ET) |
|---|---|---|
| Floki (FLOKI) | +32.40% | $0.0001301 |
| Bonk (BONK) | +21.24% | $0.00003755 |
| Curve DAO Token (CRV) | +20.24% | $0.9476 |
The global cryptocurrency market capitalization stood at $3.79 trillion, following a jump of 2.24% in the last 24 hours.
Stocks bounced back sharply on Wednesday. The Dow Jones Industrial Average lifted 231.49 points, or 0.53%, to end at 44,254.78. The S&P 500 rose 0.32% to end at 6,263.70. The tech-focused Nasdaq Composite added 0.18% to clock yet another record close of 20,640.33.
Drama unfolded after a senior White House official hinted that Trump is planning to remove Fed Chair Powell. However, Trump quickly downplayed the reports, saying it is "highly unlikely" he will do so in the near future.
Interestingly, the odds of a 25 basis point rate cut at the Federal Reserve’s September meeting increased from 54.5% to 56.3%, according to the CME FedWatch tool.
See More: Best Cryptocurrency Scanners
Analyst Notes: In a note to Benzinga, the analytics team at Bitcoin yield protocol TeraHash said that if exchange-traded flows persist and cryptocurrency bills pass through, Bitcoin could see a $3 trillion valuation by year-end.
"We see this as Bitcoin's transition from ';digital gold' to monetary infrastructure," the analysts said.
Widely followed cryptocurrency analyst Ali Martinez flagged $3,980 as a key resistance for Ethereum, breaking which could "ignite a major bull rally."
Photo Courtesy: oekka.k on Shutterstock.com
Read Next:
- Donald Trump To Fire Jerome Powell? Polymarket Traders Say ‘No, But…’
