Leading cryptocurrencies traded sideways on Wednesday as softer-than-expected inflation data lifted equities, even as geopolitical tensions with Iran kept markets on edge.
Bitcoin (CRYPTO: BTC) climbed to an intraday high of $65,507 before encountering strong resistance, eventually settling at $64,540.27, a decline of 0.34% over the 24-hour period.
Ethereum (CRYPTO: ETH) broke above $1,900 for the first time since February 3, though it ultimately closed the session at $1,914.24, posting a 1.87% decline by the end of the day.
XRP (CRYPTO: XRP) edged up 0.16% to $1.10, while Dogecoin (CRYPTO: DOGE) was essentially flat, dipping 0.34% to $0.07379 over the same period.
Cryptocurrency-related stocks also retreated, with Strategy Inc. (NASDAQ: MSTR) and Bitmine Immersion Technologies Inc. (NYSE: BMNR) closing down 0.11% and 3.07%, respectively.
Over $300 million was liquidated from the cryptocurrency market in the last 24 hours, mostly wiping out bearish short bets, according to Coinglass data.
The global cryptocurrency market capitalization stood at $2.2 trillion following a dip of 0.79%, while “Extreme Fear” sentiment prevailed according to the Crypto Fear and Greed Index.
Among the top performers, Ondo gained 13.32%, eCash rose 12.69%, and ether.fi climbed 12.07% during the 24-hour period.
On the equities side, the Dow Jones Industrial Average rose 150.37 points, or 0.29%, to close at 52,658.64, while the S&P 500 advanced 0.38% to 7,572.40 and the Nasdaq Composite spiked 0.62% to 26,269.22.
Producer inflation came in well below expectations in June, following a softer-than-expected consumer inflation print the previous day, pushing up the odds of the Federal Reserve holding interest rates unchanged according to the CME FedWatch tool.
Geopolitical pressures remained elevated as U.S. Central Command confirmed a second wave of strikes against Iranian military assets targeting capabilities used to threaten vessels transiting the Strait of Hormuz.
Widely followed cryptocurrency analyst Michaël van de Poppe said technical indicators are pointing to a market floor, advocating for a dollar-cost averaging strategy during the current period of weakness.
Van de Poppe reacted to a chart showing Bitcoin’s relative unrealized profit hitting lows comparable to past accumulation phases in 2020 and 2023, calling the pattern historically significant.
“The cycles don’t need to repeat themselves on Bitcoin, but the behavior does repeat itself,” Van de Poppe said. “This is the time.”
Cryptocurrency commentator Ali Martinez echoed that view, arguing that investors should not fixate on catching the exact market low in order to generate strong long-term returns.
“Personally, I believe even current prices represent an attractive long-term accumulation area,” Martinez said. “My plan is to accumulate during periods of weakness and look to take profits during the next major cycle, around 2029.”
