Leading cryptocurrencies slid Wednesday as investors were alarmed by the transfer of half a billion dollars worth of seized Bitcoin out of U.S. government wallets.
| Cryptocurrency | Gains +/- | Price (Recorded 8:45 p.m. EDT) |
| Bitcoin BTC/USD | -3.01% | $58,973.57 |
| Ethereum ETH/USD | -1.74% | $2,688.00 |
| Dogecoin DOGE/USD | -3.26% | $0.1029 |
What Happened: Bitcoin rallied to $61,670 during the morning hours on cooler-than-expected July consumer price index (CPI) data, but quickly pulled back and trended down after the U.S. government moved as many as 10,000 Bitcoins, worth $593 million, recovered from the Silk Road incident.
The top cryptocurrency rose 5.45% this week, but it has failed to fully recover losses from the contraction triggered over recession fears earlier this month.
Ethereum witnessed a similar trajectory, sailing to $2,770 morning before retracing to the high $2,600 region.
The total cryptocurrency liquidation hit $121 million in the past 24 hours, with long liquidations accounting for 73% of the total.
Bitcoin's Open Interest dipped marginally by 0.06%, while the number of traders going long on the leading currency rose in the last 24 hours.
The market continued to be in a state of "Fear," according to the Cryptocurrency Fear & Greed Index, indicating significant selling pressure.
Top Gainers (24-Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 8:45 p.m. EDT) |
| Aave (AAVE) | +9.74% | $106.58 |
| Toncoin (TON) | +6.91% | $6.89 |
| Flare (FLR) | +4.71% | $0.01583 |
The global cryptocurrency market stood at $2.09 trillion, shrinking 1.90% in the last 24 hours.
Stocks inched higher Thursday on favorable inflation data. The Dow Jones Industrial Average rose 242.75 points, or 0.61%, to end at 40,008.39. The broad-based index S&P 500 gained 0.38% to close at 5,455.21. The tech-heavy Nasdaq Composite added 0.03% to end at 17,192.60.
The CPI saw a cooler-than-anticipated annual headline print in July, boosting investors' hopes of larger interest rate cuts by the Federal Reserve.
According to the CME FedWatch tool, there was a 62% probability of the Fed lowering rates to the 5.25-5.5% range.
See More: Best Cryptocurrency Scanners
Analyst Notes: Well-known cryptocurrency analyst Rekt Capital pointed out how $61,700 was providing stiff resistance to Bitcoin bulls.
The analyst also highlighted how King Crypto was oscillating between late June wedge highs of $62,000 and the early July wedge highs of $58,280.
Widely-followed trader Michaël van de Poppe observed that the possibility of a rate cut by the Fed was "approaching," and predicted that it would lead to upward price action for Bitcoin as well.
Image via Shuttersstock
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