Cryptocurrency Prices Decline Amid Stock Market Gains

Leading cryptocurrencies experienced a drop on Wednesday, diverging from the upward trend seen in the stock market. This decline comes as expectations rise regarding the new Donald Trump administration and its potential impact on the financial landscape.

Cryptocurrency	Gains +/-	Price (Recorded at 7:30 p.m. ET)
Bitcoin BTC/USD	-2.33%	$103,392.39
Ethereum ETH/USD	-2.13%	$3,255.66
Dogecoin DOGE/USD	-1.94%	$0.3612

What Happened: Bitcoin continuously fell from the previous day's high of $107,000, reaching an intraday low of $102,561. Meanwhile, Ethereum saw a similar decline, shedding over 2% of its value in the past 24 hours and more than 5% over the week.

Investor optimism has been tempered due to the lack of any cryptocurrency-related executive orders from President Trump so far, despite the SEC under acting Chairman Mark Uyeda establishing a cryptocurrency task force aimed at creating regulations for the sector.

In the past day, approximately 96,027 traders experienced liquidations, totaling around $185.56 million, primarily from upside bets valued at $133.52 million.

This situation has led to a 3.06% decrease in Bitcoin's Open Interest, signifying a loss of confidence among long-position holders. Conversely, a recovery back to $107,000 could trigger the liquidation of nearly $565 million worth of short positions.

According to the Crypto Fear & Greed Index, market sentiment has cooled from "Extreme Greed" to "Greed" within the last day.

Top Gainers (24-Hours)

Cryptocurrency	Gains +/-	Price (Recorded at 7:30 p.m. ET)
XDC Network (XDC)	+14.13%	$0.1318
Worldcoin (WLD)	+8.21%	$2.28
Pudgy Penguins (PENGU)	+5.10%	$0.02501

The global cryptocurrency market capitalization now stands at $3.62 trillion, growing by 3.62% in the last 24 hours.

In contrast, the stock market surged for the second day in a row, with the Dow Jones Industrial Average increasing by 130.92 points (0.30%) to close at 44,156.73. The S&P 500 went up by 0.61%, finishing at 6,086.37, just shy of its record closing high. Moreover, the tech-focused Nasdaq Composite gained 1.28%, closing at 20,009.34.

Stocks in the artificial intelligence sector, including Nvidia Inc. NVDA, saw significant gains as President Trump announced a substantial $500 billion initiative aimed at supporting the industry within the U.S. Nvidia’s stock surged by 4.43% during Wednesday's trading session.

Analyst Notes: Renowned cryptocurrency analyst Rekt Capital observed that Bitcoin appears to have entered a re-accumulation phase, possibly leading to new all-time highs. He noted, "The last time Bitcoin underwent re-accumulation was during the post-halving phase, which resulted in a +46% rally upon breakout from that phase." This pattern could potentially push Bitcoin's price close to $150,000 in the future.

Another prominent cryptocurrency trader, Michaël van de Poppe, expressed optimism for Ethereum, citing substantial purchases by World Liberty Financial, a decentralized finance platform with backing from Trump. He remarked, "The fact that World Liberty has been acquiring large amounts of ETH makes me more bullish on that asset. I believe it is set to experience a significant revival through 2025."

Photo by Avi Rozen on Shutterstock

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Cryptocurrency, Bitcoin, Stock