Bitcoin, Ethereum, XRP, Dogecoin Dip As Fed Chair Powell Pours Cold Water On December Rate Cut Hopes: Analyst Says Watch Out For These Key BTC Levels
Leading cryptocurrencies, including Bitcoin, Ethereum, XRP, and Dogecoin, experienced declines as Federal Reserve Chair Jerome Powell dampened hopes for a December interest rate cut. Bitcoin fluctuated between $110,000 and $113,000, while Ethereum struggled to surpass $4,000, down over 20% from its peak. Nearly $600 million was liquidated from the crypto market, with a significant number of long positions affected. The global cryptocurrency market cap fell by 1.50% to $3.74 trillion. Analysts suggest Bitcoin is currently trapped in a range between $107,000 and $116,000, with potential for a short-term rally if conditions improve.
Leading cryptocurrencies fell alongside major stock indexes on Wednesday as Federal Reserve Chair Jerome Powell said that a year-end interest rate cut is “not a foregone conclusion.”
Cryptos Fall As Investors Remained Fearful
Bitcoin fluctuated between $110,000 and $113,000 during the day, accompanied by a drop in trade volume.
Ethereum attempted to break above $4,000 but faced repeated rejections. The second-largest cryptocurrency is trading down over 20% from its all-time high.
Nearly $600 million was liquidated from the cryptocurrency market in the last 24 hours, according to Coinglass, with an overwhelming majority of long positions wiped out.
That said, nearly $580 million in Bitcoin shorts risked liquidation if the apex cryptocurrency rebounds to $117,000.
Bitcoin's open interest, meanwhile, rose 1.65% in the last 24 hours. An increase in open interest coinciding with a price decrease mainly indicates new short positions being opened.
The market remained gripped in "Fear," according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $3.74 trillion, contracting 1.50% in the last 24 hours.
Stocks Slide After Powell’s Hawkish Tone
Stocks retreated on Wednesday. The Dow Jones Industrial Average fell 74.37 points, or 0.16%, to 47,632.00. The S&P 500 closed lower at 6,890.59. The tech-heavy Nasdaq Composite bucked the declines, rallying 0.55% to close at a new record of 23,958.47.
The Fed lowered interest rates by 25 basis points to 3.75%-4.00% for the second straight meeting, but Fed Chair Powell cautioned that a year-end cut is "not a foregone conclusion," pushing back against investor expectations.
Following Powell’s comments, odds of the central bank keeping the rates unchanged surged to 67%, from only 9% a day ago, according to the CME FedWatch tool.
BTC’s Short-Term Rally On The Way?
On-chain analytics firm CryptoQuant noted that Binance funding rates have remained positive over the past week.
"When rates move back into positive territory, Bitcoin often begins a new short-term uptrend," CryptoQuant stated. "This may signal that the groundwork for the next rally is already being laid."
Widely followed cryptocurrency analyst Daan Crypto Trades highlighted that Bitcoin remains trapped in the $107,000-$116,000 range, with two rejections at $116,000.
"The main levels are still $107,000 & $116,000 in the short to mid term. Anything in between those levels is just chop," the analyst added.
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