Bitcoin, Ethereum, Dogecoin Stable During Stock Downturn with Fed Chair Jerome Powell …

Leading cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin managed to hold steady amidst a turbulent stock market, thanks to Federal Reserve Chair Jerome Powell’s optimistic remarks about potential relaxation of regulations in the crypto industry. Bitcoin was trading at $84,097.68, while Ethereum was priced at $1,584.40. The overall market cap of cryptocurrencies globally saw an increase to $2.65 trillion. Notably, market analyst Ali Martinez highlighted $1,528.50 as a crucial support level for Ethereum, with a substantial accumulation observed. With the prevailing market sentiment being one of ‘Fear’, a significant amount of over $278 million was liquidated in the past 24 hours.

On Wednesday, leading cryptocurrencies didn’t see much movement following Chair Powell’s encouraging statements about the sector. Bitcoin experienced fluctuations, reaching a peak of $85,428.28 before dropping sharply to $83,000, accompanied by a decrease in trading volume by 1.28% within the last 24 hours. Similarly, Ethereum displayed a volatile session, hovering around the $1,500 mark with a brief surge above $1,600.

Bitcoin’s dominance in the market rose to 63.1%, while Ethereum’s market share slightly decreased to 7.2%. Notably, more than $278 million was liquidated within a day, with bullish positions contributing to $160 million of that total. Bitcoin’s Open Interest saw a minor dip of 0.13% in the 24-hour period, with the Long/Short Ratio on Binance indicating a higher proportion of traders holding a bullish stance towards the premier cryptocurrency. The prevailing mood in the market, as per the Crypto Fear and Greed Index, continued to be one of fear.

In terms of top gainers within a 24-hour span, Core (CORE) recorded a notable increase of 15.67%, reaching $0.609, followed by Fartcoin (FARTCOIN) with an 11.80% rise to $0.9025 and Raydium (RAY) gaining 11.54% to hit $2.29.

The global cryptocurrency market cap stood at $2.65 trillion, marking a marginal increase of 0.41% within the previous 24 hours. Conversely, traditional stock markets experienced a significant downturn on Wednesday, with the Dow Jones Industrial Average plummeting by 699.57 points to close at 39,669.39. The S&P 500 also saw a decline of 2.24%, closing at 5,275.70, while the Nasdaq Composite dropped by 3.07%, concluding the day at 16,307.16.

The market’s reaction stemmed from Chair Powell’s comments on the growing risks of higher inflation and slower economic growth, due in part to former President Donald Trump’s tariffs. The likelihood of interest rates remaining unchanged at the upcoming central bank meeting rose to 83.1%, up from 81.4% the day before, according to the CME FedWatch tool. Additionally, Powell hinted at forthcoming relaxations in certain regulations surrounding cryptocurrencies and banking, citing the industry’s maturation and mainstream adoption.

In light of recent developments, on-chain analytics firm CryptoQuant highlighted that Bitcoin accumulation had hit a two-month low, with outflows witnessing an increase. Whales reportedly reduced their holdings by 30,000 BTC, while Miner outflows amounted to 15,000 BTC on April 7th, coinciding with margins falling to 33%. This has resulted in accumulation rates reaching their slowest pace since February.

While Ethereum’s performance remained relatively stagnant, analyst Ali Martinez pointed out crucial levels to monitor, identifying $1,528.50 as a significant support level for Ethereum, with over 2.61 million addresses accumulating more than 4.82 million ETH at that price point.