Leading cryptocurrencies were red, while stock futures rallied overnight on Wednesday after President Donald Trump signed a historic “Memorandum of Understanding” with Iran to end all hostilities.
Crypto Market Fails To Rally
Bitcoin retreated from $66,000 to below $64,000, as trading volume jumped 25% over the last 24 hours. Ethereum slid below $1,800, while XRP and Dogecoin also recorded intraday declines.
Nearly $440 million was liquidated from the market in the last 24 hours, with $300 million in long positions traders alone wiped out, according to Coinglass data.
Bitcoin’s open interest fell by 2.62% over the last 24 hours. That said, the majority of the retail and whale derivatives traders on Binance were positioned long on the apex cryptocurrency.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.25 trillion, following a modest dip of 0.85% over the last 24 hours.
Stock Futures Pop After Trump Signs MoU
Stock futures ripped higher overnight on Wednesday. The Dow Jones Industrial Average Futures jumped 260 points, or 0.50%, as of 8:46 p.m. EDT. Futures tied to the S&P 500 gained 0.81%, while Nasdaq 100 Futures climbed 1.31%.
The rally followed Trump signing the “Memorandum of Understanding” with Iran during a dinner hosted by French President Emmanuel Macron inside the Palace of Versailles.
Pakistan Prime Minister Shehbaz Sharif, who has acted as the mediator, confirmed that the MoU has also been signed by Iranian President Masoud Pezeshkian.
Why Crypto Sold Off After Fed Decision
According to blockchain research firm Santiment, the Fed’s decision to keep rates unchanged played out as a “buy the rumor, sell the news” moment, since investors had largely anticipated and priced in the outcome.
“Yet once the announcement became official, crypto, equities, gold, and silver all experienced immediate selling pressure as investors shifted their focus from what was expected to what comes next,” it added.
On-chain analytics firm CryptoQuant noted that Bitcoin’s Spent Output Profit Ratio for short-term holders was yet to break below the key panic threshold of 0.95.
The metric is used to determine whether investors who have held their Bitcoin for less than 155 days are selling at an aggregate profit or loss.
“The current structure suggests a fragile recovery phase rather than full capitulation; a reclaim of 1.0 would confirm improving short-term sentiment, while a renewed drop below 0.95 would signal rising panic risk,” CryptoQuant added.
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