Leading cryptocurrencies were little changed Wednesday overnight as higher-than-expected core inflation data weighed on investors' decisions.
Cryptocurrency Gains +/- Price (Recorded at 8.30 p.m. EDT) Bitcoin BTC/USD +0.47% $57,905.55 Ethereum ETH/USD
-0.57% $2,363.63 Dogecoin DOGE/USD -0.61% $0.1022
What Happened: Bitcoin plunged below $56,000 during morning hours after core inflation for August exceeded estimates, moderating expectations for a 50-basis-point rate cut at next week’s FOMC meeting.
However, a swift recovery saw the leading cryptocurrency nearly touch $58,000 by market close. Bitcoin was still down 0.47% over the past week, and 1.89% since September began.
Ethereum also recovered its morning losses and hovered around the mid-$2,300 mark.
Traders taking bullish long positions on Bitcoin surged compared to those positioning for price declines, as seen by the spike in the Long/Short Ratio.
The Cryptocurrency Fear & Greed Index fell to 31 from 37 a day before, indicating significant FUD in the market.
Top Gainers (24-Hours)
Cryptocurrency Gains +/- Price (Recorded at 8:30 p.m. EDT) Injective (INJ) +4.61% $18.94 Sui (SUI) +4.34% $0.9557 Monero (XMR) +3.82% $173.32
The global cryptocurrency market stood at $2.02 trillion, following a marginal increase of 0.15% in the last 24 hours.
Stocks ticked higher on Wednesday. The S&P 500 rose 58.61 points, or 1.07%, to end at 5,554.13, while the tech-focused Nasdaq Composite added 2.17% to close at 17,395.53. Both of these indices clocked their third straight day of gains. The Dow Jones Industrial Average inched 0.31% higher to finish at 40,861.71.
Like cryptocurrencies, stocks fell after inflation data came higher than expected. Investors now anticipitated an 85% chance of a 25-basis-point cut as of this writing, according to the CME FedWatch tool. Next on their radar is the producer price index data, due to be released Thursday.
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Analyst Notes: Co-founders of the blockchain analytics platform Glassnode, Jan Happel and Yann Allemanna, who go by their pseudonym Negentropic on X, noted the peak of the Bitcoin Risk Index.
Looks like a great time to accumulate spot BTC," the handle said, adding that entering during this phase carries a "substantial reward."