Leading cryptocurrencies fell, while stocks rebounded on Thursday as investors parsed the hawkish pivot in the Federal Reserve’s policy.
Crypto Market Dips Further
Bitcoin fell to the early $62,000s, while Ethereum tumbled to an intraday low of $1,670, extending the broader market declines. XRP and Dogecoin also traded in the red.
Long liquidations surged, accounting for 80% of the total cryptocurrency liquidations in the last 24 hours, according to Coinglass data.
Bitcoin’s open interest fell by 2.38% over the last 24 hours. That said, the majority of retail and whale derivatives traders on Binance maintained significantly higher long positions in the apex cryptocurrency
“Extreme Fear” sentiment persisted in the market, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.17 trillion, following a decline of 2.31% over the last 24 hours.
Stocks Rebound After Sell-Offs
Stocks bounced back on Thursday. The Dow Jones Industrial Average rose 72.15 points, or 0.14%, to end at 51,564.70. The S&P 500 gained 1.08% to close at 7,500.58, while the tech-focused Nasdaq Composite added 1.91% to settle at 26,517.93.
The comeback rally followed Wednesday’s sharp sell-off after the Federal Reserve held the federal funds rate steady at 3.50%-3.75%, with Chair Kevin Warsh striking a notably hawkish tone
The New York Stock Exchange and the Nasdaq will be closed on Friday in observance of Juneteenth National Independence Day.
Why This Level Holds The Key
Widely followed cryptocurrency analyst and trader Ali Martinez reiterated the significance of $64,000 as a key support for Bitcoin within a descending channel on a 1-hour chart.
“Hold it, and $69,000 becomes the next upside target,” the analyst projected.
On-chain analytics firm CryptoQuant noted that large and small whale orders remained stable within the correction zone, citing a metric that measures the average order size of executed trades.
“This reflects the accumulation activity of large capital flows beginning to emerge, reducing the current selling pressure on BTC,” the firm added.
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