Bitcoin, Dogecoin Gain, While Ethereum, XRP Move Sideways; Analyst Says BTC's Top Still Not 'On The Horizon'

Bitcoin rallied alongside the S&P 500 on Wednesday, even as the Federal Reserve’s minutes raised tariff-induced inflation concerns.

Bitcoin Recovers, But Open Interest Drops

Bitcoin rebounded after the Tuesday pullback, leaping to intraday highs at $124,167.09 before settling in the $122,000 region overnight.

Ethereum moved sideways in the $4.500 region, as trading volume slumped 29% over the last 24 hours.

Bitcoin’s dominance stayed just above 58%, while Ethereum’s market share fell below 13%.

Cryptocurrency liquidations reached $325 million in the last 24 hours, with nearly equal amounts of longs and shorts evaporated, according to Coinglass.

Interestingly, Bitcoin’s open interest dropped 1.31%. A drop in open interest coming alongside a price increase typically indicates short position traders closing their positions.

Meanwhile, nearly 60% of Binance traders with open BTC positions were short as of this writing.

Top Gainers (24 Hours) 

The global cryptocurrency market capitalization stood at $4.20 trillion, following a modest increase of 0.70% in the last 24 hours.

Stocks Back At Record Highs

Stocks rebounded to record highs on Wednesday. The S&P 500 rallied 0.58% to close at 6,753.72. The tech-focused Nasdaq Composite rose 1.12% to end at 23,043.38. The Dow Jones Industrial Average ended another day in the red, dropping 1.20 points to end at 46,601.78.

According to the Minutes of the Fed’s September meeting, participants noted that President Donald Trump's tariffs increased inflation this year and would likely add further pressure next year. The central bank estimates inflation returning to the 2% target only in 2027.

Meanwhile, the odds of a 25 basis point rate cut during the upcoming meet dropped marginally to 94%, according to the CME FedWatch tool.

BTC To Continue Rally?

Julio Moreno, Head of Research at on-chain analytics firm CryptoQuant, said Bitcoin’s profit-taking remained low despite hitting record highs at $126,000

"This suggests that Bitcoin may continue to rally, and that a top is still not on the horizon," Moreno added.

Widely followed cryptocurrency analyst Ted Pillows highlighted the importance of the $4,250-$4,300 support zone for Ethereum.

"If this level holds, Ethereum will start the reversal. Otherwise, expect a drop towards $4,000 in the coming weeks," Pillows projected.

Photo Courtesy: Travis Wolfe on Shutterstock.com

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