Leading cryptocurrencies surged on Tuesday, matching the upswing in the stock market, as investors' confidence in risky asset classes grew.

What Happened: Bitcoin, the market bellwether, swung to highs of $64,700 Tuesday overnight, a level unseen since Aug. 2. The leading cryptocurrency trended upward throughout U.S. trading hours.

Ethereum continued to chop in the $2,600 zone, awaiting a decisive breakout to the $2,700 region. That said, the second-largest cryptocurrency has outperformed Bitcoin in returns since the Federal Reserve's aggressive rate cut last week.

Total cryptocurrency liquidations reached $111 million in the last 24 hours, with $71 million in downside bets getting wiped out.

The rally resulted in a 3% spike in Bitcoin's Open Interest, signaling high speculative interest for the apex digital coin.

Additionally, traders longing Bitcoin outnumbered those anticipating a decline in its price, as the Long/Short Ratio went past 1.

The market sentiment remained "Neutral," according to the popular Cryptocurrency Fear & Greed Index, signaling a balance between market forces.

Top Gainers (24-Hours)

The global cryptocurrency market stood at $2.26 trillion, following an increase of  2.30% in the last 24 hours.

Stocks recorded their second straight day of upswing. The Dow Jones Industrial Average gained 83.57 points, or 0.20%, to close at 42,208.22, while the S&P 500 gained 0.25% to end at 5,732.93. Both the blue-chip indexes closed at record highs. The tech-heavy Nasdaq Composite rose 0.56% to close at  18,074.52.

The rally came after shares of AI powerhouse NVIDIA Corp. (NASDAQ:NVDA) popped nearly 4% on reports that CEO Jensen Huang has completed selling company stock under a trading plan.

The Fed's 50 basis point rate cut has energized the market, with the Dow up 1.55% since September began and the S&P 500 rising 1.49%.

Analyst Notes: Contrary to expectations, widely followed cryptocurrency trader Nagato forecast a "blow-off top" for the market in the fourth quarter of 2024.

"If you think what's coming in the next few months will be even slightly comparable to the run-up we had in Q1 2024, you've been successfully brainwashed," the analyst warned.

Nagato added that the upcoming quarter will be a "true crypto bubble."

If you think what's coming in the next few months will be even slightly comparable to the run-up we had in Q1 2024, you've been successfully brainwashed.
Q1 2024 was a minor pump, mostly fueled by crypto enthusiasts excited about $BTC's new ATH, ETFs, and the halving.
Q4 2024...

— Nagato