Leading cryptocurrencies defied the stock market’s Labor Day pause, exhibiting a notable surge on Monday. Bitcoin, the dominant cryptocurrency, climbed throughout the day, breaking past $59,000 in the evening. This marked a significant shift from Sunday’s performance where Bitcoin dipped below $58,000, a level it hadn’t seen in over two weeks.
Ethereum, the second-largest cryptocurrency, also experienced a substantial climb, reaching as high as $2,550 before settling down to $2,530. Within the past 24 hours, a total of $77.76 million was liquidated across 32,150 traders, with over $47 million in downside bets being wiped out.
Bitcoin’s Open Interest, a measure of outstanding futures contracts, jumped by 3.32% in the past 24 hours. This increase, coupled with the price rise, indicates a heightened level of speculative interest among futures traders. The Longs/Shorts ratio for Bitcoin remained relatively unchanged, with bullish bets continuing to outweigh bearish bets at the time of writing. Despite this bullish sentiment, the Cryptocurrency Fear & Greed Index currently places the market in the “Fear” zone.
Beyond Bitcoin and Ethereum, several other cryptocurrencies also saw significant gains over the past 24 hours. ORDI (ORDI) surged by 19.88%, reaching $31.46, while SATS (1000SATS) gained 14.73% to hit $0.0003124. MANTRA (OM) also experienced a strong increase, climbing 11.90% to $0.9835.
The global cryptocurrency market, currently valued at $2.07 trillion, has seen a nearly 8% increase in the last 24 hours. This growth comes in contrast to the inactivity of the stock market on Monday due to the Labor Day holiday. Stock futures remained largely unchanged overnight, with the Dow Jones Industrial Average Futures down by 0.13% and the S&P 500 Futures dipping by 0.08%. Nasdaq 100 Futures fell by 0.18%.
September is set to be a crucial month for investors as the Federal Reserve prepares to make a decision on its monetary policy during the upcoming FOMC meeting scheduled for September 18th. According to the CME FedWatch Tool, investors anticipate a 69% chance of a rate cut to the 5%-5.25% range.
On-chain analytics firm Santiment has interpreted Bitcoin’s rise during the Labor Day holiday as a positive indicator of the market’s strength. The firm also highlighted the growing negativity and fear, uncertainty, and doubt (FUD) surrounding cryptocurrencies, which could potentially trigger a price rebound soon.
Popular cryptocurrency trader Daniel Nita has shared his predictions for Bitcoin in September, anticipating a bearish first half and a bullish second half. He emphasized that this prediction is based on market sentiment and Bitcoin’s historical price movements in September. However, it’s important to note that Bitcoin has historically experienced an average loss of 4.34% in September over the past decade, according to Coinglass.
