Crypto Analysts: Bitcoin, Ethereum, Dogecoin Hold Steady Amid Inflation Data, Advising to Invest in Grayscale Bitcoin Mini Trust

Cryptocurrencies saw minimal movement on Wednesday overnight as investors grappled with higher-than-expected core inflation figures. Bitcoin (BTC/USD) showed a modest increase of 0.47% to reach $57,905.55, while Ethereum (ETH/USD) experienced a slight decline of 0.57% to hit $2,363.63. Dogecoin (DOGE/USD) also dipped by 0.61% to $0.1022.

The day started with Bitcoin dropping below $56,000 in response to August’s core inflation surpassing predictions, which tempered hopes for a 50-basis-point rate cut at the upcoming FOMC meeting. Despite this, a swift rebound pushed Bitcoin close to $58,000 by the market’s close. Over the past week, Bitcoin was down by 0.47% and had decreased by 1.89% since the beginning of September. Ethereum managed to recover from its morning losses and stabilized around the mid-$2,300 range.

Within the last 24 hours, total cryptocurrency liquidations exceeded $125 million, predominantly impacting bullish positions. The Long/Short Ratio highlighted a surge in traders taking bullish long positions on Bitcoin compared to those betting on price declines. The Cryptocurrency Fear & Greed Index dropped from 37 to 31, indicating heightened fear, uncertainty, and doubt in the market.

In terms of top gainers over a 24-hour period, Injective (INJ) led with a 4.61% increase to $18.94, followed by Sui (SUI) at +4.34% and Monero (XMR) at +3.82%. The global cryptocurrency market reached $2.02 trillion after a slight uptick of 0.15% in the past day.

Stocks also saw positive movement on Wednesday, with the S&P 500 climbing 1.07% to 5,554.13, the Nasdaq Composite rising by 2.17% to 17,395.53, and the Dow Jones Industrial Average edging up 0.31% to 40,861.71. Similar to cryptocurrencies, stocks faced a downturn following unexpected inflation data. Investors were now predicting an 85% likelihood of a 25-basis-point cut, according to the CME FedWatch tool, with the upcoming focus on the release of the producer price index data on Thursday.

Jan Happel and Yann Allemanna, co-founders of the blockchain analytics platform Glassnode, highlighted the Bitcoin Risk Index’s peak. They suggested that the current phase presented an opportunity to accumulate spot BTC, emphasizing the potential for substantial rewards during this period.