The cryptocurrency market rebounded on Wednesday evening, recovering from yesterday’s downturn. Bitcoin surged and came close to reaching a fresh 18-month high, surpassing $37,000. This recovery followed a brief drop below $35,000 on Tuesday.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Bitcoin BTC/USD | +5.68% | $37,434 |
| Ethereum ETH/USD | +4.48% | $2,049 |
| Dogecoin DOGE/USD | +5.31% | $0.076 |
What Happened: October’s U.S. inflation data on Tuesday exceeded expectations, with the headline Consumer Price Index (CPI) remaining unchanged for the month, defying economist forecasts of a 0.1% increase. Additionally, the core rate saw a modest increase of only 0.2%, outperforming predictions for a 0.3% rise.
According to data from Coinglass, crypto shorts worth over $110 million were liquidated as BTC surged past $37,000. Within just 24 hours, $51 million worth of BTC shorts vanished, while ETH shorts worth $16 million were also liquidated.
In this same timeframe, a total of 50,432 traders experienced liquidation, resulting in a combined total of $146.07 million in liquidations.
Top Gainer (24 Hour)
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EDT) |
| dYdX | +30.20% | $3.82 |
| Celestia | +26.53% | $6.01 |
| Pancake swap | +19.36% | $2.52 |
The global crypto market cap currently stands at $1.38 trillion, reflecting a decrease of 1.99% in the past 24 hours.
Stocks continued their upward momentum on Wednesday, fueled by positive inflation data. The S&P 500 showed a modest gain of 0.16%, closing at 4,502.88, while the Nasdaq Composite made a slight move upward of 0.07%, ending at 14,103.84. The Dow Jones Industrial Average also experienced a notable increase, adding 163.51 points, or 0.47%, to close at 34,991.21. Meanwhile, the yield on the 10-year U.S. Treasury rose by 9 basis points to reach 4.537%. This development comes in the wake of the rate slipping below the 4.5% threshold just the day before.
Although there was positive news on the inflation front, with October’s producer price index dropping by 0.5% – the largest monthly decrease since April 2020, retail sales showed a decline, presenting a mixed economic picture.
See More: Best Cryptocurrency Scanners
Analyst Notes: Cryptocurrency analyst Michael Van de Poppe noted that Bitcoin successfully held the $34,800-35,200 support area and has shown resilience by bouncing back from this zone.
"High chances we’ll see some new highs coming in or [at least] a sweep. Wouldn’t be surprised of even $40K to be a potential level."
Pseudonymous crypto analyst Pentoshi predicts that both BTC and ETH will soon become part of people’s 401k retirement plans.
"Everyone wants a chance to buy way lower, but you may not get it. While the demand initially may be slow, it will eventually be very consistent. Not too concerned about where price is in a month, but in a few years. Imagine having held amazon for years. That’s where we could be right now. The next few months are noise compared to where we are going and you may change bias several times. But it doesnt change the end result."
Santiment, a firm specializing in on-chain data analytics for the crypto market, noted that the state of Crypto has largely remained stagnant over the past few days. However, there have been notable surges in the values of several altcoins such as SOL, AVAX, RUNE, and even FTT. Additionally, it is advisable to closely monitor the growing social volume surrounding BTC, ETH, and other major cryptocurrencies, as an increasing number of traders are showing renewed interest in the markets once again.
Photo by Igor Faun on Shutterstock
Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions From Twitter Users
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