Leading cryptocurrencies surged on Tuesday, matching the upswing in the stock market, as investors' confidence in risky asset classes grew.
| Cryptocurrency | Gains +/- | Price (Recorded at 9:30 p.m. EDT) |
| Bitcoin BTC/USD | +2.56% | $64,439.73 |
| Ethereum ETH/USD | +1.21% | $2,652.72 |
| Dogecoin DOGE/USD | +3.21% | $0.1106 |
What Happened: Bitcoin, the market bellwether, swung to highs of $64,700 Tuesday overnight, a level unseen since Aug. 2. The leading cryptocurrency trended upward throughout U.S. trading hours.
Ethereum continued to chop in the $2,600 zone, awaiting a decisive breakout to the $2,700 region. That said, the second-largest cryptocurrency has outperformed Bitcoin in returns since the Federal Reserve's aggressive rate cut last week.
Total cryptocurrency liquidations reached $111 million in the last 24 hours, with $71 million in downside bets getting wiped out.
The rally resulted in a 3% spike in Bitcoin's Open Interest, signaling high speculative interest for the apex digital coin.
Additionally, traders longing Bitcoin outnumbered those anticipating a decline in its price, as the Long/Short Ratio went past 1.
The market sentiment remained "Neutral," according to the popular Cryptocurrency Fear & Greed Index, signaling a balance between market forces.
Top Gainers (24-Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 9:30 p.m. EDT) |
| Sei (SEI) | +30.17% | $0.4734 |
| dogwifhat (WIF) | +20.17% | $2.05 |
| Popcat (POPCAT) | +17.34% | $1.06 |
The global cryptocurrency market stood at $2.26 trillion, following an increase of 2.30% in the last 24 hours.
Stocks recorded their second straight day of upswing. The Dow Jones Industrial Average gained 83.57 points, or 0.20%, to close at 42,208.22, while the S&P 500 gained 0.25% to end at 5,732.93. Both the blue-chip indexes closed at record highs. The tech-heavy Nasdaq Composite rose 0.56% to close at 18,074.52.
The rally came after shares of AI powerhouse NVIDIA Corp. NVDA popped nearly 4% on reports that CEO Jensen Huang has completed selling company stock under a trading plan.
The Fed's 50 basis point rate cut has energized the market, with the Dow up 1.55% since September began and the S&P 500 rising 1.49%.
See More: Best Cryptocurrency Scanners
Analyst Notes: Contrary to expectations, widely followed cryptocurrency trader Nagato forecast a "blow-off top" for the market in the fourth quarter of 2024.
"If you think what's coming in the next few months will be even slightly comparable to the run-up we had in Q1 2024, you've been successfully brainwashed," the analyst warned.
Nagato added that the upcoming quarter will be a "true crypto bubble."
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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