Leading cryptocurrencies plunged alongside stocks on Wednesday as the Federal Reserve said the escalating Middle East conflict could push inflation higher.
| Cryptocurrency | 24-Hour Gains +/- | Price (Recorded at 9:25 p.m. ET) |
|---|---|---|
| Bitcoin (CRYPTO: BTC) | -4.07% | $70,979.99 |
| Ethereum (CRYPTO: ETH) | -5.98% | $2,189.10 |
| XRP (CRYPTO: XRP) | -4.10% | $1.45 |
| Solana (CRYPTO: SOL) | -4.92% | $90.04 |
| Dogecoin (CRYPTO: DOGE) | -5.46% | $0.09495 |
‘Extreme Fear’ Returns
Bitcoin dived below $71,000, reversing a rally that pushed it up to $76,000. Ethereum’s decline was steeper, pulling the second-largest cryptocurrency back to the $2,100 zone.
Shares of Strategy Inc. (NASDAQ:MSTR) and Coinbase Global Inc. (NASDAQ:COIN) closed down 6.47% and 3.78%, respectively.
Over $450 million was liquidated from the cryptocurrency market over the past 24 hours, with $380 million in bullish long bets alone wiped out, according to Coinglass data.
Open interest in Bitcoin futures dipped 3.75% in the last 24 hours. However, derivatives traders on Binance bought this dip, opening more long positions versus shorts.
"Extreme Fear" sentiment returned to the market after a brief reprieve, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
| Cryptocurrency (Market Cap>$100 M) | Gains +/- | Price (Recorded at 9:25 p.m. ET) |
| River (RIVER) | +18.64% | $26.51 |
| siren (SIREN) | +18.21% | $0.8881 |
| Akash Network (AKT) | +13.95% | $0.5481 |
The global cryptocurrency market capitalization stood at $2.53 trillion, down 1.44% over the last 24 hours.
Stocks Slide Amid Inflation Worries
Stocks pulled back sharply on Wednesday. The Dow Jones Industrial Average shed 768.11 points, or 1.63%, to end at 46,225.15. The S&P 500 dropped 1.36% to 6,624.70, while the tech-focused Nasdaq Composite slid 1.46% to end at 22,152.42.
The Fed held interest rates unchanged at 3.50%–3.75% for the third straight meeting, as widely expected. Later, Fed Chair Jerome Powell warned that the escalating conflict in the Middle East could push U.S. inflation higher in the near future.
New data supported Powell's statements. U.S. producer prices increased 0.7% month-over-month in February, compared to 0.5% in the previous month, and higher than market estimates of 0.3%
Meanwhile, crude prices spiked, with the West Texas Intermediate hitting $100 per barrel again after Iran targeted Gulf energy sites, including the world's largest liquefied natural gas processing facility in Qatar, according to Reuters. The attack was in retaliation for Israel targeting Iran’s South Pars gas processing facility earlier in the day.
How Low Can BTC Go?
Leading cryptocurrency analyst and trader Michael van de Poppe weighed in on Bitcoin's latest drop, identifying $69,000-$70,000 as critical support to make another run toward highs.
"If that doesn’t hold, I would assume we’ll see the $58,000-$60,000 lower boundaries tested again," the analyst added. “It’s not looking great for Bitcoin with this drop.”
The views were echoed by Rekt Capital, another widely followed analyst, who suggested Bitcoin's potential retest of the 200-week Exponential Moving Average at $68,200.
Photo: Memory Stockphoto / Shutterstock
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