Leading cryptocurrencies rebounded alongside stocks on Sunday, as investors raised the prospect of a December rate cut following dovish signals.
Cryptos See Slight Recovery
Bitcoin broke through $88,000 but returned to the $86,000 level overnight. Trading volume jumped 50% to $57 billion, indicating high trader interest and buying pressure. Similarly, Ethereum rallied to an intraday high of $2,856.45 before returning to $2,700.
The two assets fell sharply this week, with Bitcoin losing 8.82% and Ethereum falling 11.16%. The blue-chip currencies have sunk to their multi-month lows.
Cryptocurrency liquidations hit $222 million in the last 24 hours, according to Coinglass, with short position traders bearing the brunt of the losses.
Meanwhile, a rise in Bitcoin to $90,000 could trigger additional short liquidations totaling about $292 million.
Bitcoin's open interest rose marginally by 0.50% in the last 24 hours to $59.61 billion. The "Extreme Fear" sentiment persisted in the market, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
| Cryptocurrency (Market Cap>$100 M) | Gains +/- | Price (Recorded at 8:25 p.m. ET) |
|---|---|---|
| Fasttoken (FTN ) | +14.52% | $2.02 |
| Hedera (HBAR) | +11.06% | $0.1471 |
| Decred (DCR ) | +9.51% | $24.72 |
The global cryptocurrency market capitalization stood at $2.95 trillion, following an increase of 1.3% in the last 24 hours.
Stock Futures Jump As Fed Rate Cut Hopes Spike
Stock futures lifted overnight on Sunday. The Dow Jones Industrial Average Futures rallied 117 points, or 0.25%, as of 7:45 p.m. EDT. Futures tied to the S&P 500 spiked 0.43%, while Nasdaq 100 Futures gained 0.63%.
Expectations for a December rate cut spiked following dovish comments from policymakers, led by New York Fed President John Williams and Governor Stephen Miran.
Traders priced in a 69% chance that the Fed will slash rates by 25 basis points, up from 44% a week earlier, according to the CME FedWatch tool.
Investors will also keep an eye on the October Producer Price Index report, due Tuesday, for clues about the Federal Reserve's next steps on potential interest rate cuts.
The stock market is closed on Thursday for Thanksgiving Day and will close early on Friday at 1 p.m. ET.
Where To Buy ETH?
Widely followed cryptocurrency analyst and trader Ali Martinez highlighted levels where Ethereum could be accumulated for the "next bull rally."
The analyst noted that ETH has been stuck in a channel since 2021 and a recent rejection at the top of the channel has pushed the cryptocurrency lower.
"Ethereum could find support in the middle of the channel at $2,300, at $1,500, or at the bottom of the channel at $1,000 making these the most optimal levels to buy," Martinez said.
Michaël van de Poppe, another popular cryptocurrency commentator, appreciated Bitcoin's "good bounce," predicting a climb to $90,000-$96,000 before BTC finding a new base.
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