Leading cryptocurrencies fell alongside stocks on Thursday, as investors reduced their risk appetite amid the government shutdown.
Bitcoin Dips Below $120,000
Bitcoin saw sharp rejection after reaching $123,600, resulting in a drop below $120,000. Trading volume soared by 13% to $71 billion in the last 24 hours.
Spot exchange-traded funds tracking the apex cryptocurrency saw a net outflow of $57 million on Thursday, according to SoSo Value.
Ethereum fell below $4,500, hitting an intraday low of $4,273.56, before settling at $4,380 overnight.
Cryptocurrency liquidations topped $670 million in the last 24 hours, with over $500 million in long positions wiped, according to Coinglass.
Meanwhile, Bitcoin’s open interest rose 0.51% in the last 24 hours. An increase in open interest coming alongside a price drop typically indicates that new short positions were opened.
"Greed" sentiment weakened in the market, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
| Cryptocurrency (Market Cap>$100 M) | Gains +/- | Price (Recorded at 9:30 p.m. ET) |
|---|---|---|
| Zora (ZORA) | +61.73% | $0.08761 |
| Subsquid (SQD) | +44.72% | $0.2544 |
| AB (AB ) | +43.29% | $0.008297 |
The global cryptocurrency market capitalization stood at $4.20 trillion, following a modest increase of 0.62% in the last 24 hours.
Stocks Fall As Shutdown Drags On
Stocks retreated from recent highs on Wednesday. The S&P 500 fell 0.28% to close at 6,735.11. The tech-heavy Nasdaq Composite dipped 0.08% to end at 23,024.63. The Dow Jones Industrial Average ended another day down, losing 243.36 points, or 0.52%, to close at 46,358.42.
The government shutdown entered its ninth day, with little sign of negotiations between Republicans and Democrats. Alternative data from private firms and banks showed that the labor market is cooling.
The odds of a 25 basis point rate cut during the upcoming Federal Reserve meeting, however, remained unchanged at 94%, according to the CME FedWatch tool.
A ‘Major Support’ For Bitcoin
On-chain analytics firm CryptoQuant highlighted the weighted average cost basis of Bitcoin's short-term holders standing is $112,200, a level that could act as a "major support."
"To prevent panic selling from STHs, it is crucial for the ongoing consolidation to hold above the $112,000 line in the short term," CryptoQuant said.
Note that cost basis is the original price at which BTC were acquired by this cohort.
ZYN, a widely followed cryptocurrency analyst, said that Ethereum's Wyckoff accumulation, a period in which institutional investors buy assets at low prices during a downturn, is in its "final phase."
"Ethereum just needs a weekly close above $4,750 and a new rally will start. My target is $8,000 by Q4 end and $10,000 by cycle top," the analyst projected.
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