Analysts expect Bitcoin to trade in this range until the Fed meeting. Bitcoin jumps on cooler inflation; Ethereum, XRP, and Dogecoin gain.
Leading cryptocurrencies rallied on Wednesday as U.S. producer inflation unexpectedly cooled, boosting the chances of interest rate cuts.
| Cryptocurrency | Gains +/- | Price (Recorded at 9:25 p.m. ET) |
|---|---|---|
| Bitcoin BTC/USD | +2.74% | $114,022.87 |
| Ethereum ETH/USD | +1.67% | $4,373.72 |
| XRP XRP/USD | +1.55% | $2.99 |
| Solana SOL/USD | +4.17% | $225.10 |
| Dogecoin DOGE/USD | +3.30% | $0.2465 |
Bitcoin Sees Noticeable Breakout
Following days of range-bound volatility, Bitcoin saw a breakout, rising above $114,000. The last day saw a 17% increase in trading volume.
Ethereum fell almost $4,370 overnight after rallying to an intraday high of $4,450.42 but failing to maintain the gains. The 24-hour period saw a 1.55% increase in XRP as well.
In the past day, more than $264 million was removed from the cryptocurrency market, including $158 million from short positions.
This week, Bitcoin’s open interest has risen 6.4%, with a 2.11% gain over the past day. According to the Long/Short Ratio, the most recent increase strengthened bullish posture for the top cryptocurrency, with longs outnumbering shorts.
Top Gainers (24 Hours)
| Cryptocurrency (Market Cap>$100 M)) | Gains +/- | Price (Recorded at 9:25 p.m. ET) |
|---|---|---|
| Launch Coin On Believe (LAUNCHCOIN) | +19.25% | $0.1013 |
| Ika (IKA) | +17.65% | $0.04557 |
| Plume (PLUME) | +17.42% | $0.1209 |
The global cryptocurrency market capitalization stood at $3.95 trillion, growing by 2.34% in the last 24 hours.
US Producer Inflation Cools Sharply
On Wednesday, stocks reached new closing highs. The tech-heavy Nasdaq Composite ended the day up 0.03% at 21,886.06, while the S&P 500 increased 0.3% at 6,532.04.
The outlier was the Dow Jones Industrial Average, which ended the day at 45,490.92, down 220.42 points, or 0.48%.
August saw a 0.1% decline in the Producer Price Index, erasing the July jump and igniting expectations of rate reduction from the Federal Reserve. The most recent reading was a significant miss because analysts had anticipated a 0.3% increase.
The CME FedWatch tool shows that traders have factored in a 92% possibility that the Fed will cut interest rates by 25 basis points next week.
Will Bitcoin Rise To $118,000?
Analysts at cryptocurrency payment company B2BINPAY told Benzinga in a note that Bitcoin’s spike to $114,000 appeared to be more of a repositioning than the beginning of a new upswing.
“We believe that BTC will be trading in the $110,000-$118,000 range until the 17th-18th September Fed meeting, with dips likely supported,” according to the analysts. “Still, a clear break above $115,000 level may open the way to $120,000, while falling below $112,000 level risks causing a quick move toward $107,000.”
Angel investor and cryptocurrency market watcher Ted Pillows likened the current price swings of Ethereum to the 2020–21 cycle of Bitcoin.
In a period of three to four months, Ethereum is trading between $8,000 and $10,000. However, there’s a probability that prices will drop in the near future,” Pillows predicted.
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