Market Update: Bitcoin and Ethereum Stable as Geopolitical Signals Shift
Bitcoin and Ethereum show minimal changes amid signs of a potential UKR-RUS conflict resolution, while Dogecoin falls. Bitcoin recovers from a low of $81,179.99 to over $83,000. Liquidations exceed $214 million as market focus shifts to the Federal Reserve’s interest rate decision. Analysts predict new highs for Bitcoin if key support levels are maintained.
In recent market activity, Bitcoin and Ethereum displayed minimal fluctuations while Dogecoin experienced a decline. This stability coincided with indications that the Ukraine-Russia conflict might be nearing resolution, particularly after a significant call between Presidents Donald Trump and Vladimir Putin that pointed towards a potential ceasefire in Ukraine.
Bitcoin initially fell to an intraday low of $81,179.99 but rebounded to exceed $83,000 following the positive developments. Ethereum similarly recovered, reaching $1,945. However, the market witnessed notable liquidations, exceeding $214 million within 24 hours, with bullish positions significantly impacted.
The collapse in market positions was underscored by the looming threat of short liquidations, particularly if Bitcoin reclaims $85,000, which could result in an additional $500 million in shorts being wiped out. Furthermore, Bitcoin’s Open Interest saw a slight decline of 0.89%, reflecting the market’s current price dynamics. The Crypto Fear and Greed Index indicated persistent market apprehension.
Market capitalization for cryptocurrencies hovered at $2.71 trillion, representing a 0.96% contraction. In parallel, the stock market also faced declines, with significant drops in indices such as the Dow Jones and Nasdaq Composite following Tesla and Nvidia’s disappointing stock performances.
As investor focus shifts, attention will be directed toward the Federal Reserve’s upcoming interest rate announcement, with the CME FedWatch tool forecasting a 99% probability that the current interest range will remain unchanged. Notably, CryptoQuant reported aggressive accumulation from wealthier Bitcoin holders, potentially establishing a crucial support framework for Bitcoin prices moving forward.
According to analyst Ali Martinez, reclaiming $93,700 as support for Bitcoin is essential as it could pave the way for a new all-time high of $111,000. Continued accumulation among significant stakeholders may bolster Bitcoin’s prospects in the near future.
In summary, Bitcoin and Ethereum are experiencing steady movements amid encouraging geopolitical news, while Dogecoin faces losses. The market remains cautious, with significant liquidations and short positions at risk if Bitcoin makes upward movements. The interest rate decision by the Federal Reserve may also influence market dynamics. Analysts suggest that maintaining critical support levels could lead to new highs for Bitcoin, contingent on ongoing accumulation trends among high-net-worth investors.
Original Source: in.benzinga.com
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