Leading cryptocurrencies traded sideways, while stocks closed lower on Wednesday as resumption in U.S.-Iran hostilities dampened risk-on appetite
Crypto Market Stagnates
Bitcoin spiked to an intraday high of $62,788 but faced stiff resistance soon after. Ethereum meandered in the $1,600 zone, while XRP and Dogecoin traded in the red.
Over $400 million was liquidated from the market in the last 24 hours, with long position traders bearing the brunt of the losses, according to Coinglass data.
Bitcoin’s open interest rose marginally by 0.84% in the last 24 hours. Retail and whale derivatives traders with open BTC positions, meanwhile, remained long on the apex cryptocurrency.
“Extreme Fear” sentiment prevailed in the market, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.12 trillion, following a dip of 0.33% from the previous day.
Stocks Slide As US Intensifies Attacks On Iran
Stocks retreated further on Wednesday. The S&P 500 fell 1.62% to end at 7,266.99, while the tech-focused Nasdaq Composite slid 1.98% to settle at 25,169.50. The Dow Jones Industrial Average lost 953.33 points, or 1.87%, to close at 49,918.78.
The U.S. military said it launched strikes against “multiple targets” in Iran in response to Tehran’s “unwarranted and continued aggression.” Trump said earlier in the day that Iran “took too long” to negotiate a deal and will have to “pay the price.”
Why BTC Needs To Cross $64,0000
Widely followed cryptocurrency analyst and trader Michaël van de Poppe saw “no clear decision” on Bitcoin’s path as yet, but predicted the leading cryptocurrency would test recent lows in the next few days to sweep liquidity.
“There’s not a ton of strength, and there’s no reason for it, so you clearly need to look at the technical side of things and those aren’t bullish until $64,000 breaks,” the analyst stated.
On-chain analytics firm CryptoQuant noted that Bitcoin’s realized losses have not yet reached capitulation levels.
The firm highlighted that sellers realized 187,000 BTC of losses in the last month, compared to 1.2 million BTC at the November 2022 cycle bottom.
“The bottom may be near in terms of price level, but a regime change into a bull market requires a constructive demand recovery, a condition not yet visible in the data,” CryptoQuant added.
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