Bitcoin, Ethereum, and Dogecoin Experience Price Drops Amid Fed Minutes

On Wednesday, the leading cryptocurrencies experienced further declines as the Federal Reserve minutes indicated a gloomy outlook for risk-on assets.

Cryptocurrency	Gains +/-	Price (Recorded at 10:15 p.m. ET)
Bitcoin BTC/USD	-2.27%	$94,545.96
Ethereum ETH/USD	-1.40%	$3,329.12
Dogecoin DOGE/USD	-2.20%	$0.3402

What Happened: During the afternoon, Bitcoin briefly fell below $93,000 before recovering to above $94,000 during the night.

This leading cryptocurrency has seen a substantial drop from its peak at $102,000 earlier this week.

Ethereum also faced a downturn, hitting an intraday low of $3,209, its lowest point since December 20.

The downtrend resulted in liquidations exceeding $539 million within 24 hours, erasing more than $400 million in long positions.

Bitcoin's Open Interest decreased by 3.21% over the last day, further indicating the liquidation of several long positions.

Despite these declines, data revealed that over 63% of traders on Binance were maintaining bullish positions, as indicated by the Long/Short Ratio, suggesting they were seizing the opportunity to buy the dip.

The market sentiment, according to the Crypto Fear & Greed Index, remained inclined towards "Greed."

Market Dynamics and Stock Movement

The total global cryptocurrency market capitalization stood at $3.34 trillion, marking a decline of 1.63% in the past 24 hours.

Meanwhile, the stock market experienced a recovery following the previous day's downturn. The Dow Jones Industrial Average rose by 106.84 points, or 0.25%, closing at 42,635.20. The S&P 500 saw a slight increase of 0.16%, ending at 5,918.25. However, the tech-heavy Nasdaq Composite showed a small decrease of 0.06% to close at 19,478.88.

This fluctuation aligns with the release of minutes from the Federal Reserve's December 18 meeting, which suggested a slower pace of interest rate cuts expected through 2025.

Additionally, U.S. Treasury yields continued to climb, with the benchmark 10-year Treasury yield reaching 4.7%, its highest level since late April.

Analyst Insights

Renowned cryptocurrency analyst Ali Martinez emphasized that Bitcoin must reclaim the $100,000 mark to dispel the bearish narrative and continue its journey toward new all-time highs.

In a previous statement, Martinez pointed out the significant resistance Bitcoin faces in the range between $98,000 and $100,000.

Fellow analyst Michaël van de Poppe shared his technical perspective on Bitcoin, stating, "I anticipated the markets to break out and trigger a bull run at $100,000. However, that did not occur. Instead, it is likely that we are witnessing a collection of liquidity beneath the lows before reverting to higher prices. The $90-92,000 range is critical."

Conclusion

As the cryptocurrency market grapples with recent volatility and broader market influences, keeping track of pivotal price levels and market sentiment remains essential for traders and investors alike.

Bitcoin, Ethereum, Dogecoin