Bitcoin, Ethereum Rally After Inflation Data Boosts Rate-Cut Expectations

Following a minor pullback, Bitcoin reclaimed the $100,000 mark, while Ethereum returned to the $3,800 territory.

Major cryptocurrencies continued their rally on Wednesday as in-line inflation data boosted expectations of monetary easing by the Federal Reserve.

Bitcoin and Ethereum rebounded from a minor pullback on Wednesday, with BTC once again crossing the $100,000 mark and ETH returning to the $3,800 territory.

The upswing in Bitcoin prices catalyzed the rest of the cryptocurrency market, with altcoin dominance increasing by 4.41% over the last 24 hours.

Cryptocurrency liquidations surpassed $240 million in the last 24 hours, with $154 million in leveraged shorts getting wiped out.

Over $400 million in shorts faced liquidation on Binance if Bitcoin rises to $104,000. Bitcoin's Open Interest surged by 4.90% in the last 24 hours.

However, notably, the number of traders shorting the asset rose dramatically in the last 24 hours, implying a greater expectation of another dip.

According to the Cryptocurrency Fear & Greed Index, market sentiment returned to the "Extreme Greed" zone, lending credence to the pullback narrative.

Top Gainers (24-Hours)

Coin Price 24-Hr Change

1. Bitcoin (BTC) $100,183.23 0.82%2. Ethereum (ETH) $3,818.05 1.18%3. Binance Coin (BNB) $621.13 2.18%4. XRP (XRP) $0.833 1.05%5. Dogecoin (DOGE) $0.221 3.18%The global cryptocurrency market capitalization stood at $3.61 trillion, surging by 5.02% over the last 24 hours.

The stock market rebounded sharply on Wednesday after consecutive days of losses, sparked by strong earnings from electric vehicle and tech giants.

The tech-heavy Nasdaq Composite jumped by 1.77% to close at a record high of 20,034.89. Meanwhile, the S&P 500 rallied by 0.82%, ending at 6,084.19.

On the other hand, the Dow Jones Industrial Average closed another day in the red, slipping by 0.22% to 44,148.56.

The tech rally was supported by electric vehicle giant Tesla Inc.’s (NASDAQ:TSLA) stock hitting all-time highs after a 5.93% spike.

Moreover, November's Consumer Price Index matched analysts' expectations, prompting traders to raise the likelihood of a 25 basis point rate cut in next week's Federal Reserve meeting to 98.6% from 88.9% a day before, according to CME FedWatch data.

Analyst Notes: Popular cryptocurrency analyst and trader Michaël van de Poppe stated that Bitcoin was headed to new all-time highs in the coming days if it managed to stay above the $97,844 resistance level.

Let's do some TA on #Bitcoin.

It broke through a crucial area yesterday.

If it holds above that resistance level, likely we'll see a new ATH in the coming days.

We're back in $100k+ territory. pic.twitter.com/eiK45s5aNi

Another widely followed analyst, known by their pseudonym venturefounder, predicted Ethereum to hit $4,900 "very soon" as it reclaimed the $3,800 level as support.

The analyst also set price targets of $5,349, $6,457, and $7,238 by the first quarter of 2025.

$ETH weekly candle not done yet, we are back to $3,800 support level.

It took #Ethereum 2 years to complete this cup and handle, and you think it will be shaken out like this?

$4,900 very soon. Then it gets explosive, PT are:

$5,349

$6,457

$7,238

All this by Q1 2025 the… pic.twitter.com/9jdbe95uvU