Leading cryptocurrencies diverged from stocks on Thursday, as each market gauged the weak jobs data differently.
| Cryptocurrency | Gains +/- | Price (Recorded at 10:30 p.m. ET) |
|---|---|---|
| Bitcoin (CRYPTO: BTC) | -0.22% | $111,246.07 |
| Ethereum (CRYPTO: ETH) | -2.66% | $4,321.10 |
| XRP (CRYPTO: XRP) | -1.10% | $2.80 |
| Solana (CRYPTO: SOL) | -2.46% | $203.17 |
| Dogecoin (CRYPTO: DOGE) | -1.52% | $0.2146 |
Institutional Interest Wavers
Bitcoin dropped to an intraday low of $109,347.23 in the early trading hours before bouncing back to the mid-$111,00s overnight. The coin's trading volume was up 11% over the last 24 hours.
Ethereum fell below $4,300 and, unlike its elder sibling, failed to recover meaningfully later in the day. XRP fell 1.10% in the last 24 hours.
Institutional demand tapered, as exchange-traded funds linked to Bitcoin and Ethereum saw outflows of $362.31 million and $316.21 million, respectively, according to data from SoSo Value.
Over $290 million was liquidated from the cryptocurrency market in the last 24 hours, with long-position traders losing $223 million.
Bitcoin's open interest dropped 1.25% in the last 24 hours. The Puell Multiple indicator, which measures Bitcoin mining pressure, was neutral, suggesting that the market was neither overvalued nor undervalued as of this writing.
The overall market sentiment remained "Neutral," according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 10:30 p.m. ET) |
|---|---|---|
| MemeCore (M) | +31.28% | $1.36 |
| Metaplex (MPLX) | +21.27% | $0.2657 |
| Freysa (FAI) | +14.72% | $0.01291 |
The global cryptocurrency market capitalization stood at $3.81 trillion, contracting 1.29% in the last 24 hours.
Rate Cut Odds Spike
Stocks rallied sharply on Thursday. The Dow Jones Industrial Average lifted 350.06 points, or 0.77%, to close at 45,621.29. The S&P 500 rose 0.83% to finish at 6,502.08, while the tech-heavy Nasdaq Composite closed up 0.98% at 21,707.69.
Private payrolls data was released Thursday, with only 54,000 new jobs created in August, down sharply from 106,000 in July, and missing economists’ expectations of 65,000.
The weak labor market data lifted the odds of a September rate cut, up to 99.3% from 96.6% a day earlier, according to the CME FedWatch tool.
ETH’s Boring Phase To Last Longer?
Widely followed cryptocurrency analyst BitBull highlighted Bitcoin's rejection from a key resistance level.
"Until the $114,000 level is reclaimed on the daily timeframe, every BTC move will just be a bull trap," BitBull stated. "Also, the longer it’ll take BTC to reclaim $114,000 level, higher the chances of a big correction before reversal.
Another well-known cryptocurrency commentator, Wolf, admitted Ethereum is in a "boring" phase and expected it to last for a few more weeks.
"Base case: we swipe the highs before the FOMC in 2 weeks, sell the news, then swipe the lows," the analyst projected.
Photo Courtesy: Yalcin Sonat On Shutterstock.com
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