Leading cryptocurrencies jumped alongside stocks on Wednesday, as investors looked past government shutdown concerns.
‘Greed’ Sentiment Returns To Crypto
Bitcoin soared to an intraday high of $119,453.67, reaching levels not seen since the mid-August rally. Trading volume spiked 31% to $76 billion.
Similarly, Ethereum broke past the $4,000 support barrier, reaching intraday highs of $4,381.41.
Historically, October has been a bullish month for the market, with Bitcoin and Ethereum gaining an average of 20% and 4.74%, respectively, leading many to dub it as "Uptober."
Meanwhile, cryptocurrency liquidations hit $580 million in the last 24 hours, with bearish short traders facing the brunt of the losses.
Bitcoin’s open interest popped 6.13% in the last 24 hours, while funds locked in Ethereum derivatives also jumped 5.68%.
"Greed" sentiment returned to the cryptocurrency market, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
| Cryptocurrency (Market Cap>$100 M) | Gains +/- | Price (Recorded at 9:30 p.m. ET) |
|---|---|---|
| Zcash (ZEC) | +56.72% | $118.14 |
| Dash (DASH) | +41.83% | $31.74 |
| Collector Crypt (CARDS) | +35.52% | $0.2712 |
The global cryptocurrency market capitalization rose to $4.05 trillion, marking a sharp increase of 3.69% in the last 24 hours.
Stocks Reverse After Shutdown-Induced Blip
Stocks ended in the green on Wednesday. The Dow Jones Industrial Average gained 43.21 points, or 0.09%, to finish at 46,441.10. The S&P 500 closed up 0.34% at 6,711.20, setting a record closing high, while the tech-focused Nasdaq Composite lifted 0.42% to end at 22,755.16.
This marked a significant reversal from the lag in stock futures on Tuesday overnight following the federal government shutdown.
According to Goldman Sachs economists, the shutdown is likely to result in the furlough of nearly 900,000 federal employees, or roughly 40% of the workforce, resulting in delayed paychecks and disrupted services.
The shutdown halts the release of crucial economic data, including the monthly jobs report and inflation figures from the Bureau of Labor Statistics.
What To Expect In Q4?
On-chain analytics firm CryptoQuant highlighted that Bitcoin has reclaimed the Trader's Realized Price at $116,000.
"This shift puts BTC back in the BULL phase of the cycle indicator. From here, Q4 targets expand toward $160,000–$200,000," CryptoQuant added.
For the curious, Realized Price is a metric representing the average price at which all units of a cryptocurrency were last moved or purchased.
Widely followed cryptocurrency analyst Cas Abbé stated that Ethereum was nearing the conclusion of its Wyckoff accumulation phase, in which institutional investors buy assets at low prices during a downturn.
"This is the phase where a parabolic run happens," Abbé added. "IMO, ETH will make a strong support around $4,000 level and then pull a 80%-100% rally in 6-8 weeks."
Photo Courtesy: bitz100 on Shutterstock.com
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