Bitcoin, Ethereum, Dogecoin Sink Over Inflation Concern In Fed Minutes: Analyst Says Odds 'In Favor' Of King Crypto Bulls

Leading cryptocurrencies edged lower on Wednesday as investors reacted to the Federal Reserve's concern over inflation in the minutes from the recent policy meeting.

What Happened: Bitcoin hovered below the $70,000 market after giving hopes of shattering its all-time high earlier this week. Ethereum remained choppy in the $3,750 – $3,800 zone.

In the past 24 hours, more than 61,000 traders were liquidated, with the total liquidation surpassing $156 million. Ethereum led the pack with around $42.85 million in liquidations. 

The euphoria seen earlier in the week started fading, as the Open Interest in Bitcoin Futures dropped 0.53% in the last 24 hours. A steeper decline of 2,20% was observed on the Chicago Mercantile Exchange–the world's largest Bitcoin derivatives exchange.

The market sentiment remained "Extremely Greedy" despite the blip seen in top cryptocurrencies.

Meanwhile, in a crucial step for regulatory clarity for the crypto industry in the U.S., the House passed a landmark bill establishing clear guidelines for what would make a token a commodity or a security.

Top Gainer (24 Hour)

The global cryptocurrency market cap stands at $2.6 trillion, following a 0.43% decrease in the last 24 hours.

The stock market slipped on Wednesday. The Dow Jones Industrial Average fell 201.95 points, or 0.51%, to end at 39,671.04, recording its worst session in the month. The S&P 500 fell 0.27% to close at 5,307.01, while the tech-focused Nasdaq Composite lost 0.18% to finish at 16,801.54.

The negative sentiment permeated as the minutes from the Federal Reserve's policy meeting flagged concerns over the lack of progress in inflation, heightening investors’ fears of future monetary policy tightening.

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Analyst Notes: Prominent cryptocurrency analyst and trader Ali Martinez noted that Bitcoin was facing "minimal resistance." He drew attention to the significance of zone between $70,180 and $70,600 where over 450,000 addresses grabbed 273,000 BTC.

"With strong support levels, the odds are in favor of the bulls," Martinez remarked.

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