Markets
Bitcoin, Ethereum and Dogecoin Rise as Investors Anticipate Interest Rate Cut: Analyst Highlights Final Hurdle for King Crypto Before ‘Parabolic’ Move
June 4, 2024 9:38 pm | 2 minutes reading
Top cryptocurrencies rose as investor expectations for interest rate cuts spurred investment in risk-on markets.
| Cryptocurrency | Earnings +/- | Price (recorded at 8:35 pm EDT) |
| Bitcoin (CRYPTO: Bitcoin) | +2.66% | US$70,619.64 |
| Ethereum (CRYPTO: ETH) | +1.80% | US$3,816.76 |
| Dogecoin (CRYPTO: DOGE) | +2.49% | $0.1618 |
What happened: Bitcoin surpassed $70,000 and largely sustained gains around the level, while Ethereum consolidated after its peak above $3,800. Previously, both assets faced strong resistance at these levels.
The rally resulted in liquidations worth $97 million in the last 24 hours, with short liquidations accounting for 62%.
The brief increase was enough to catalyze speculative markets. Bitcoin open interest rose 5.85% to an all-time high of $37 billion, reflecting the flow of new money into the market.
The number of traders taking bullish long positions on Bitcoin has increased dramatically over the past 24 hours, with long positions exceeding shorts by a factor of 1.36.
Biggest earner (24 hours)
| Cryptocurrency | Earnings +/- | Price (recorded at 8:35 pm EDT) |
| ORDI (ORDI) | +20.55% | US$57.22 |
| Uniswap (UNI) | +20.16% | $11.41 |
| Stacks (STX) | +14.23% | $2.16 |
The global cryptocurrency market capitalization increased by 2.46% to $2.62 trillion in the last 24 hours.
Shares rose on Tuesday. O Dow Jones Industrial Average rose 140.26 points, or 0.36%, to close at 38,711.29. O S&P 500 gained 0.15% to end at 5,291.34, and the high-tech sector Nasdaq Composite added 0.17% to 16,857.05.
Treasury yields fell, with the benchmark 10-year note falling 4 basis points.
The rebound comes after weaker-than-expected job openings data for April, which fell to the lowest level in three years. This increased investor optimism about the Federal Reserve’s interest rate cuts.
Investors will be watching the important May employment report, due out on Friday, to determine whether the Fed will take a more dovish approach.
View more: Best Cryptocurrency Scanners
Analyst Notes: Popular Cryptocurrency Analyst Rekt Capital signaled a final hurdle for Bitcoin before entering the “parabolic” phase of the cycle.
The highlighted area is the crucial $72,000 to $73,000 zone, which also includes its all-time high set in March.
Cryptocurrency Analyst Michael van de Poppe was bullish on Ether and predicted the rise will continue, helped by positive developments around spot ETFs.
Read next: Mike Novogratz predicts Bitcoin at $100,000 by the end of 2024
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