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Leading cryptocurrencies saw a decline on Wednesday, extending the run of losses that started as the week began.CryptocurrencyGains +/-Price (Recorded 8:45 p.m. EDT)Bitcoin BTC/USD -1.94%$61,407Ethereum ETH/USD -1.08%$2.985.73Dogecoin DOGE/USD -3.96%$0.1446
What Happened: The world's largest cryptocurrency, Bitcoin, dipped below $62,000 during the day, taking its week-to-date losses to over 6%. Popular meme coin Dogecoin witnessed a steeper decline, down more than 14% since the start of the week.
The price drop triggered liquidations worth more than $140 million in the 24-hour timeframe, with nearly $100 million in long positions getting wiped out. Bitcoin liquidations topped $37 million.
Surprisingly, the number of traders taking bullish long positions on Bitcoin spiked dramatically, exceeding those gunning for Bitcoin's price decline.
Bitcoin's Fear & Greed Index flashed "Greed," reflecting a degree of FOMO in the market, and a potential surge in buying pressure.
Top Gainer (24 Hour)CryptocurrencyGains +/-Price (Recorded 8:45 p.m. EDT)Kaspa (AIOZ)+8%$0.1208THORChain (RUNE)+6.76%$5.75Toncoin (TON)+3.67%$5.88
The global cryptocurrency market cap stands at $2.27 trillion, declining by 1.34% in 24 hours.
The U.S. equity market was a mixed bag on Wednesday. The Dow Jones Industrial Average rose 172.13 points, or 0.44%, to close at 39,056.39 points, extending its winning run to six straight sessions. The S&P 500 dropped 0.13% during the trading hours, ending at 5,187.67 points. The tech-focused Nasdaq Composite slipped 0.18% to 16,302.76 at the closing bell.
The yield on the 10-year Treasury rose to 4.496% as of 9:23 p.m. EDT.
See More: Best Cryptocurrency Scanners
Analyst Notes: According to on-chain analytics firm IntoTheBlock, the correlation between cryptocurrencies and traditional markets, including equities, was closer to zero.
Bitcoin's correlation with the Dow was 0.25, while with the S&P 500, it was 0.40. This suggested that both asset classes were moving on separate wavelengths. Loading… Loading…
Popular cryptocurrency trader Elja highlighted that Bitcoin was undervalued relative to its current network fundamentals.
"Bitcoins current network fundamentals indicate a 300% gain from the current level. This means that the BTC top could be somewhere between $250,000 and $275,000." Elja stated.
Another crypto expert, Benjamin Cowen, mentioned that the market was far off from the alt seasonthe phase where traders take profits from Bitcoin and invest them in altcoins.
"A macro BTC dominance uptrend, which is what we have been in, suggests that this is not alt season, nor has it been. This chart shows the last alt season we had was in 2021."
Photo by CMP_NZ on Shutterstock
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