Leading cryptocurrencies rallied on Wednesday as U.S. producer inflation unexpectedly cooled, boosting the chances of interest rate cuts.
| Cryptocurrency | Gains +/- | Price (Recorded at 9:25 p.m. ET) |
|---|---|---|
| Bitcoin (CRYPTO: BTC) | +2.74% | $114,022.87 |
| Ethereum (CRYPTO: ETH) | +1.67% | $4,373.72 |
| XRP (CRYPTO: XRP) | +1.55% | $2.99 |
| Solana (CRYPTO: SOL) | +4.17% | $225.10 |
| Dogecoin (CRYPTO: DOGE) | +3.30% | $0.2465 |
Bitcoin Sees Noticeable Breakout
Bitcoin experienced a breakout, surging past $114,000 after days of range-bound movement. Trading volume rose 17% over the last 24 hours.
Ethereum rallied to an intraday high of $4,450.42 but failed to sustain the gains, easing around $4,370 overnight. XRP also gained 1.55% in the 24-hour period.
Over $264 million was liquidated from the cryptocurrency market in the last 24 hours, with $158 million in short positions wiped out.
Bitcoin’s open interest increased by 2.11% in the last 24 hours, totaling a 6.4% rise this week. The latest spike boosted bullish positioning for the leading cryptocurrency, with longs outpacing the shorts, according to the Long/Short Ratio.
Top Gainers (24 Hours)
| Cryptocurrency (Market Cap>$100 M)) | Gains +/- | Price (Recorded at 9:25 p.m. ET) |
|---|---|---|
| Launch Coin On Believe (LAUNCHCOIN) | +19.25% | $0.1013 |
| Ika (IKA) | +17.65% | $0.04557 |
| Plume (PLUME) | +17.42% | $0.1209 |
The global cryptocurrency market capitalization stood at $3.95 trillion, growing by 2.34% in the last 24 hours.
US Producer Inflation Cools Sharply
Stocks clocked new closing highs on Wednesday. The S&P 500 rose 0.3% at 6,532.04, while the tech-heavy Nasdaq Composite closed up 0.03% to end at 21,886.06
The Dow Jones Industrial Average was the outlier, falling 220.42 points, or 0.48%, to finish at 45,490.92.
The Producer Price Index dropped 0.1% in August, reversing July’s spike and fueling hopes for Federal Reserve rate cuts. Analysts had expected a 0.3% increase, making the latest reading a notable miss.
Traders have priced in a 92% chance that the Federal Reserve slashes interest rates by 25 basis points next week, according to the CME FedWatch tool.
Will Bitcoin Rise To $118,000?
In a note shared with Benzinga, analysts at cryptocurrency payment company B2BINPAY said that Bitcoin's push to $114,000 looked more like repositioning, rather than the start of a new surge.
"We believe that BTC will be trading in the $110,000-$118,000 range until the 17th-18th September Fed meeting, with dips likely supported," the analysts said. "Still, a clear break above $115,000 level may open the way to $120,000, while falling below $112,000 level risks causing a quick move toward $107,000."
Ted Pillows, an angel investor and cryptocurrency market observer, compared Ethereum's current price movements to Bitcoin’s 2020-21 cycle.
"If I talk about a 3-4 month timeframe, Ethereum is going around $8,000-$10,000. But in the short-term, there’s a chance of lower prices," Pillows projected.
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Photo Courtesy: Yalcin Sonat / Shutterstock
