Cryptocurrency markets experienced a slight downturn on Wednesday, with investors closely watching for potential clues about the Federal Reserve’s future rate policy. The market’s attention is fixated on a speech by Jerome Powell, the Chair of the Federal Reserve, scheduled for Friday, where he could provide guidance on whether rate cuts are likely in September.
Bitcoin, the leading cryptocurrency, dropped by 1.2% to $60,350, while Ethereum, the second-largest cryptocurrency, dipped by 1.4% to $2,609. Other notable cryptocurrencies like Solana, Dogecoin, and Shiba Inu also saw modest losses.
Data from IntoTheBlock revealed a 5.5% decrease in large transaction volumes, suggesting a possible cooling-off period for major market players. However, the number of daily active addresses saw a 1.91% increase, indicating continued interest in the crypto space.
The market saw a notable liquidation event, with Coinglass reporting 31,362 traders liquidated in the past 24 hours, amounting to $95.1 million in losses. Long positions, those betting on price increases, accounted for $59 million of the liquidated amount.
Despite the recent dip, some traders remain optimistic. Jelle, a well-known crypto trader, believes Bitcoin is in an accumulation zone, suggesting that current prices are attractive for buying. He anticipates potential short-term sideways price action, a period where prices fluctuate without significant upward or downward movement. However, a poll among his followers showed a more balanced outlook, with roughly 20% expecting a breakout (a rapid price surge) or a breakdown (a rapid price decline) in the near future.
Another trader, Scient, noted that Bitcoin faced rejection at the fourth supply zone, between $61,500 and $62,000. While recognizing this resistance, Scient remains bullish, indicating a possible long position if Bitcoin closes strongly above $62,000.
The upcoming Benzinga’s Future of Digital Assets event on November 19 is expected to delve into Bitcoin’s growing influence as an institutional asset class. This event could provide further insights into the future trajectory of cryptocurrencies.
As the market navigates the uncertainty surrounding potential rate cuts, the coming days will be crucial in determining the direction of crypto prices.
