Markets
Bitcoin, Ethereum and Dogecoin Recover From Fears of US Government Sale of $240M: King Crypto Must Recover $62K Soon to Avoid Another Setback, Says Analyst
The cryptocurrency market fell on Wednesday due to fears of a potential sale of $240 million worth of Bitcoin by the US government.
| Cryptocurrency | Earnings +/- | Price (recorded at 8:30 p.m. EDT) |
| Bitcoin BTC/USD | -1.66% | US$60,804.09 |
| Ethereum Ethereum/USD | -0.91% | US$ 3,363.53 |
| Dogecoin DOGE/USD | -3.36% | $0.1222 |
What happened: Bitcoin trended lower, falling below $61,000, following the modest jump to $62,000 in previous trading sessions. The pullback followed the transfer of around 3,940 Bitcoins, valued at US$240 million, by wallets linked to the US government for cryptocurrency exchange Coinbase.
The second largest cryptocurrency, Ethereum, also retreated from advances made on Tuesday.
Around $93.78 million worth of futures positions were eliminated in the last 24 hours, while 34,986 traders were liquidated. Almost an equal amount of bullish and bearish bets were settled.
The correction triggered a 1.34% decline in Bitcoin open interest to $32.12 billion, typically interpreted as a bullish signal.
Around 54% of traders in the market were bullish on Bitcoin’s outlook, while 29% were bearish. Nearly 17% of the market had a neutral sentiment.
Biggest earner (24 hours)
| Cryptocurrency | Earnings +/- | Price (recorded at 8:30 p.m. EDT) |
| Search.ai (FET) | +10.39% | $1.75 |
| dandruff (KAS) | +10.20% | $0.1782 |
| SingularityNET (AGIX) | +7.91% | $0.7143 |
The global cryptocurrency market cap shrank by 1.23% to $2.25 trillion in the past 24 hours.
Stocks posted a second straight day of gains on Wednesday. O Dow Jones Industrial Average gained 15.64 points, or 0.04%, to finish at 39,127.80. The broadest market index, S&P 500, closed 0.16% higher at 5,477.90. The technology-focused Nasdaq Composite ended the session with an increase of 0.49%, at 17,805.16.
Big Tech led the rally, with Amazon.com Inc.. AMZN rising 3.9% and NVIDIA Corp. NVDA advancing 0.30% during the day.
Investors will closely monitor the upcoming high-stakes presidential debate between incumbent Joe Biden and challenger Donald Trump on Thursday for signs that could affect markets.
View more: Best Cryptocurrency Scanners
Analyst Notes: Popular cryptocurrency trader Justin Bennett pointed out Bitcoin’s difficulties in recovering the descending wedge pattern, interpreted as a bullish signal by technical analysts.
“If Bitcoin cannot recover $62,000 in the next 24-48 hours, we will likely be looking at a “fill” of these imbalances at $55,000 and $53,000,” Bennett warned.
On the other hand, widely followed analyst Michael van de Poppe predicted a recovery for the altcoin market, which has been facing a lot of difficulties recently. Reason? Listing of spot Ethereum ETFs.
“We saw a significant drop across the board, but this should end with the arrival of the Ethereum ETF,” the analyst noted
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