Leading cryptocurrencies fell on Thursday as investors took caution ahead of Federal Reserve Jerome Powell’s address.
| Cryptocurrency | Gains +/- | Price (Recorded at 9:20 p.m. ET) |
|---|---|---|
| Bitcoin (CRYPTO: BTC) | -1.28% | $112,581.25 |
| Ethereum (CRYPTO: ETH) | -1.42% | $4,240.92 |
| XRP (CRYPTO: XRP) | -2.83% | $2.85 |
| Solana (CRYPTO: SOL) | -3.44% | $180.06 |
| Dogecoin (CRYPTO: DOGE) | -2.57% | $0.2154 |
Cryptos Take U-Turn
Bitcoin failed to sustain Wednesday's spike, tumbling below $112,000 for the first time in over a month. Ethereum plummeted to an intraday low of $4,205.78, reversing the upward trend of the previous day.
Net outflows from Bitcoin spot exchange-traded funds stood at $66.84 million as of Aug. 21, according to analytics firm SoSo Value, marking the fourth consecutive day of losses.
Since August began, Bitcoin has slid 2.56%, while Ethereum has risen 14.52%.
Over $220 million was liquidated from the cryptocurrency market in the last 24 hours, with long liquidations accounting for 72% of the total.
Meanwhile, Bitcoin's open interest rose 0.93% over the last 24 hours. When Open Interest rises and prices fall, it typically indicates that more participants are entering new short positions.
The market remained in "Neutral" state, according to the Crypto Fear & Greed Index, suggesting a balance between bullish and bearish forces.
Top Gainers (24 Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 9:20 p.m. ET) |
|---|---|---|
| OKB (OKB) | +32.94% | $235.17 |
| Zcash (ZEC) | +9.53% | $42.58 |
| Morpho (MORPHO) | +3.09% | $2.33 |
The global cryptocurrency market capitalization stood at $3.81 trillion, following a decline of 1.87% in the last 24 hours.
Interest Rate Cut Odds Fall
Stocks closed in the red on Thursday. The Dow Jones Industrial Average slid 152.81 points, or 0.34%, ending at 44,785.50. The S&P 500 fell 0.40% to close at 6,370.17, marking its fifth consecutive drop. The tech-heavy Nasdaq Composite lost 0.34% to end at 21,100.31.
The selloff comes ahead of Fed Chair Powell’s speech at the Jackson Hole Economic Policy Symposium, as investors seek more clues about potential rate cuts.
Hawkish Fed minutes from the July meeting have already dampened mood, with traders reducing the likelihood of a September rate cut from 82.6% to 75% in the last 24 hours, according to the CME FedWatch tool.
Whales Buying The Dip
According to on-chain analytics firm CryptoQuant, whales have taken advantage of Bitcoin's dip, snapping up over 16,000 BTC over the last week.
"This pattern reveals something similar to what we saw in the first correction in early August, with major players accumulating Bitcoin as Bitcoin’s price fell and smaller investors capitulated at a loss," CryptoQuant said.
"If this pattern repeats, we should soon see a local bottom and a short-term reversal."
Cryptocurrency technical analysis-focused X account More Crypto Online suggested that Ethereum is likely to remain in "corrective structures" for a while, with potential support at $4,132-$4,256.
Photo Courtesy: Volodymyr Maksymchuk on Shutterstock.com
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