Leading cryptocurrencies declined, while the stock market closed higher on Tuesday, as the U.S. economy recorded its fastest growth in two years.
Crypto Market Struggles For Momentum
Bitcoin consolidated between $86,500 and $88,500, even as trading volume for the leading cryptocurrency rose 20% over the last 24 hours.
Ethereum meandered around $3,000, as bulls waited for a decisive breakout above the crucial level. XRP and Dogecoin also traded in the red.
Shares of cryptocurrency-linked stocks Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NASDAQ:COIN) closed down 3.92% and 4.21%, respectively, during the regular trading session.
Benzinga Edge delivers real-time stock alerts, trade ideas, and professional investing tools to help you navigate the market. Find out more about MSTR and BMNR here.
Over $250 million was liquidated from the cryptocurrency market in the last 24 hours, according to Coinglass, with long position traders bearing the brunt of the losses.
That said, about $1.80 billion worth of short positions risked liquidation if Bitcoin reclaimed $90,000.
Bitcoin’s open interest fell 0.58% in the last 24 hours. Interestingly, derivatives traders seemed to be buying the dip, with the Long/Short ratio reflecting a higher percentage of Binance traders holding long positions on the cryptocurrency.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.96 trillion, following a decrease of 1.36% in the last 24 hours.
Stocks Move In The Opposite Direction
Stocks continued their upward march on Tuesday. The Dow Jones Industrial Average lifted 79.73 points, or 0.16%, to end at 48,442.41. The S&P 500 rallied 0.46% to close at a record high of 6,909.79, while the tech-focused Nasdaq Composite rose 0.57% to finish the day at 23,561.84.
Data released Tuesday showed the U.S. economy grew 4.3% in the third quarter, well exceeding expectations of 3.3% and recording the fastest rate of expansion since the third quarter of 2023.
The hotter-than-expected economic data caused bettors to scale back expectations of a near-term rate cut, with the odds of a 25 basis point drop falling from 19.9% to 14.4% in 24 hours, according to the CME FedWatch tool. Overall, traders priced in two more rate cuts by the end of 2026.
Ethereum To Fall To $2,400?
Ali Martinez, a widely followed cryptocurrency commentator, spotted a head-and-shoulders pattern on Ethereum’s 4-hour chart, projecting a bearish target of $2,400.
The head and shoulders chart pattern depicts a bullish-to-bearish trend reversal, signaling that an upward trend is nearing its end.
Michaël van de Poppe, another popular cryptocurrency analyst, stated there’s nothing “special” to expect from Bitcoin amid thin holiday liquidity, but identified $86,500 as a key level of support.
“Ultimately, a clear breakout above $88,000 and better times are ahead, and it seems like that it’s just a matter of time until this happens,” the analyst projected.
Photo Courtesy: Marc Bruxelle on Shutterstock.com
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