Bitcoin (BTC) Price Analysis: Rally Erases $75M in Bearish Bets as Trump Touts US as 'Cryptocurrency Capital'

Leading cryptocurrencies rose on Wednesday as President Donald Trump reiterated his intention to make the U.S. the "cryptocurrency capital."

Cryptocurrency prices rose on Wednesday evening as President Donald Trump reiterated his intention to make the U.S. the "cryptocurrency capital."

What Happened: Bitcoin sailed above $96,900, while Ethereum reentered the $2,700 zone overnight, amid Trump's positive remarks about the industry at a Miami conference.

Bitcoin's dominance remained above 60%, while Ethereum cornered a 10% market share.

Cryptocurrency liquidations hit $132.69 million in the last 24 hours, as the rally erased over $75 million in bearish bets.

Interestingly, Bitcoin's Open interest fell 0.28%. A decline in Open Interest, coinciding with a price increase, indicated that shorts were covering their positions.

Bitcoin's Long/Short ratio rose above 1, indicating that the majority of the traders were placing upside bets on the leading cryptocurrency.

Market sentiment flipped from "Fear" to "Neutral," according to the Crypto Fear & Greed Index, suggesting a potential increase in buying pressure.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $3.19 trillion, rising by 2.17% in the last 24 hours.

Stocks also rallied to new peaks on Wednesday. The S&P 500 gained 0.24% to close at a record high of 6,144.15. The Dow Jones Industrial Average added 71.25 points, or 0.16%, to end at 44,627.59, while the tech-focused Nasdaq Composite gained 0.07% to close at 20,056.25.

Investors parsed the latest Federal Reserve meeting minutes, with policymakers preferring to "take a careful approach” before considering further interest rate cuts.

See More: Best Cryptocurrency Scanners

Analyst Notes: Leading on-chain analytics firm CryptoQuant noted a slowdown in the daily inflows into U.S. spot exchange-traded funds.

"U.S. ETF buys dropped from +$18,000 in early November to -$1,000 today. Bitcoin rallies are unlikely at these levels," the firm stated, pointing to a drop in institutional interest.

ETF activity is slowing.

U.S. ETF buys dropped from +18K in early November to -1K today.

Bitcoin rallies are unlikely at these levels. pic.twitter.com/wAxPLY9KSF

Popular cryptocurrency analyst and trader Rekt Capital drew attention to Bitcoin's struggles in retesting $97,700.

The researcher noted that the leading cryptocurrency has successfully held on to the $96,000 zone, showcasing "early signs of a bullish divergence."

#BTC Bitcoin hasn't been able to Daily Close & retest ~$97700 (light blue) which has meant that BTC has needed to find support at the blue trendline again

$BTC continues to successfully hold the blue diagonal, while showcasing early signs of a Bullish Divergence #Bitcoin https://t.co/ZfOTFwR9zy pic.twitter.com/TkpguSW6BB

Photo by SvetlanaParnikova on Shutterstock

Don't Miss: Elon Musk's Son Files To Legally Change Name, Gender, Citing 'Alienation' From Father, Mother Grimes