Leading cryptocurrencies cooled down from their blistering election run Tuesday, although Bitcoin briefly hit the $90,000 milestone.
Cryptocurrency | Gains +/- |
|
Bitcoin (CRYPTO: BTC) | +0.28% | $88,460.30 |
Ethereum (CRYPTO: ETH) | -1.43% | $3,267.67 |
Dogecoin (CRYPTO: DOGE) | +9.79% | $0.3761 |
Price (Recorded at 7:30 p.m. ET)What Happened: The world's largest cryptocurrency temporarily touched $90,000 for the first time in history before quickly giving in to sell pressure.
Ethereum also remained volatile, topping $3,400 for the first time since the last week of July before falling below $3,300.
Meanwhile, Dogecoin continued its uptrend after President-elect Donald Trump appointed tech mogul Elon Musk and former presidential candidate Vivek Ramaswamy to lead the much-anticipated Department of Government Efficiency (DOGE).
The halt in the rally affected bullish leveraged traders, as nearly $550 million in long positions were wiped out in the last 24 hours.
The overheated market cooled down as funding rates across major exchanges dropped sharply, though long-position traders still maintained their dominance.
The "Extreme Greed" sentiment intensified as the reading on the Cryptocurrency Fear and Greed Index rose from 80 to 84.
Top Gainers (24-Hours)
Cryptocurrency | Gains +/- | Price (Recorded at 7:30 p.m. ET) |
Bonk (BONK) | +42.44% | $0.00003671 |
Stellar (XLM) | +19.95% | $0.1346 |
Floki (FLOKI) | +19.01% | $0.0002124 |
The global cryptocurrency market capitalization stood at $2.95 trillion, following a marginal increase of 0.26% in the last 24 hours.
Stocks also took a break from their election rally. The Dow Jones Industrial Average plunged 382.15 points, or 0.86%, to close at 43,910.98. The S&P 500 lost 0.29% to end at 5,983.99, while the tech-focused Nasdaq Composite dropped 0.09% to close at 19,298.76.
The pullback comes a day after the three indexes closed at record highs on Monday, riding high on Trump's presidential victory.
Investors were likely to shift their focus to key inflation numbers due this week, including the consumer price index (CPI) slated for Wednesday and the producer price index (PPI) for Thursday.
Analyst Notes: Arthur Azizov, CEO of cryptocurrency payment provider B2BINPAY, said in a note to Benzinga,
"Given the 32% increase over the past week, it's typical for a healthy market to see some retracement, usually around 50% of such an upward move, especially if the price is to avoid reverting fully to its previous range."
That said, Azizov was confident of continued growth in Bitcoin, given broader investor enthusiasm and interest in exchange-traded funds, as well as the incoming administration's economic policies.
Influential cryptocurrency analyst Michaël van de Poppe deemed Bitcoin's small correction as normal and attributed it to the market's volatility.
He encouraged his followers to buy the dips and continue to HODL their altcoins. "The rewards will be there."
Yes, #Bitcoin is having a small correction and the whole altcoin market drops 10%.
That's the volatility of the markets.
What to do?
– Use those dips to be buying back into the markets.
– If you're into #Altcoins. Hold them.
The rewards will be there.— Michaël van de Poppe (@CryptoMichNL) November 12, 2024
