The cryptocurrency market saw a slight rebound on Sunday, with leading cryptocurrencies like Bitcoin and Ethereum edging higher. This comes after a week of losses, with Bitcoin dropping below $53,000 and Ethereum falling below $2,200.
Bitcoin surged overnight, briefly surpassing $55,000 before retracting to the higher $54,000 range. The rally caused the market’s total liquidations to surpass $100 million in the last 24 hours, primarily impacting bearish leveraged traders. Bitcoin’s Open Interest also increased by 2.02% in the past 24 hours, suggesting increased anticipation of volatility.
Ethereum mirrored Bitcoin’s upward trend, attempting to recover from last week’s decline. It inched past $2,300 Sunday evening.
The market’s sentiment appears to be improving, as the popular Cryptocurrency Fear & Greed Index moved from “Extreme Fear” to “Fear.” This shift indicates a lessening of extreme panic within the market.
The global cryptocurrency market, however, remains below $2 trillion, following a 2.90% contraction in the past 24 hours.
Meanwhile, stock futures ticked higher on Sunday night, with the Dow Jones Industrial Average Futures gaining 0.1%. Futures tied to the S&P 500 and the Nasdaq 100 also recorded gains, suggesting potential recovery in the stock market.
This uptick follows a dismal start to September for the stock market, with major indices like the S&P 500 and Nasdaq Composite experiencing weekly losses unseen in over a year. This decline was triggered by weak labor data, as the U.S. economy added only 142,000 nonfarm payrolls in August, falling short of the 160,000 consensus estimate. The CME FedWatch tool indicates a 65% chance of the Federal Reserve cutting interest rates by 25 basis points, reflecting market participants’ expectations.
Prominent cryptocurrency analyst Elja Boom observed similarities between this year’s bearish September environment and the same month last year. He noted a “peak” bearish sentiment and the unsustainability of any Bitcoin upsides. Meanwhile, widely followed cryptocurrency analyst Rekt Capital highlighted that Bitcoin’s 8% decline in September was “nothing out of the ordinary,” considering historical downtrends in the month across 2021, 2020, 2018, and 2017.
