Cryptocurrencies Bitcoin, Ethereum, and Dogecoin Surge in Tandem with Stocks: Analyst Believes Leading Cryptocurrency Still in Early Post-Halving Bull Market Cycle – Grayscale Bitcoin Mini Trust (BTC) Units (ARCA:BTC)
Cryptocurrencies surged on Monday, following the positive trajectory of the stock market. Bitcoin exhibited a notable rally, starting in the $58,000 range and later spiking to $60,000 by the evening, despite being down 8% since the beginning of the month. Ethereum also experienced a similar upturn, reaching $2,660 after traditional market hours.
Within the last 24 hours, liquidations surpassed $100 million, resulting in significant losses for bearish traders. Bitcoin’s Open Interest surged by almost 4%, indicating an influx of new capital into the derivatives market. This trend was underscored by the increase in bullish leveraged positions compared to bearish ones, as reflected in the Longs/Shorts Ratio. The Cryptocurrency Fear & Greed Index continued to show “Fear” at the time of reporting.
The global cryptocurrency market cap stood at $2.11 trillion, marking a 2.20% rise over the previous 24 hours. Concurrently, traditional stocks saw an upward trend on Monday, with the Dow Jones Industrial Average climbing 236.77 points to close at 40,896.53. The S&P 500 and Nasdaq Composite also experienced gains, closing at 5,608.25 and 17,876.77, respectively.
The market’s recovery rally since the early August downturn, triggered by recession fears and yen carry trade unwinding, extended further. Investors are closely monitoring Federal Reserve Chair Jerome Powell’s upcoming speech for insights on a potential interest rate cut next month, with current expectations at 75%, according to the CME FedWatch tool.
Renowned cryptocurrency analyst Ali Martinez highlighted Bitcoin’s historical post-halving patterns, noting that the current cycle is still in its early stages based on past trends. Another prominent trader, The Dude, predicted a significant surge for Bitcoin, citing a weekly bull flag and favorable stock recovery dynamics.
Overall, the cryptocurrency market demonstrated resilience and upward momentum, aligning with the positive sentiment in traditional financial markets. As investors navigate evolving market conditions, attention remains focused on key indicators and expert analyses to anticipate future price movements and opportunities for growth.
