Leading cryptocurrencies experienced a downturn alongside stock futures on Sunday, as market participants continued to process the Federal Reserve’s decision to implement a 25-basis-point rate cut. Bitcoin, Ethereum, XRP, Solana, and Dogecoin all registered significant declines during the trading session, prompting concerns among investors.
At 9:10 p.m. ET, Bitcoin (BTC/USD) was trading at $114,547.25, down 1.01%. Ethereum (ETH/USD) fell by 3.09%, reaching $4,351.52. XRP (XRP/USD) slipped 2.32% to $2.92, while Solana (SOL/USD) saw a decline of 3.19%, trading at $233.10. Dogecoin (DOGE/USD) experienced the sharpest decline, plummeting 6.95% to $0.2503.
Market sentiment has shifted into the “Fear” category on the Crypto Fear & Greed Index, reflecting heightened anxiety among investors. Bitcoin’s price fell below $115,000, dipping beneath its seven-day simple moving average. The trading volume surged by 12.53% to approximately $25.47 billion over the past 24 hours. Similarly, Ethereum hit a low of $4,328 during overnight trading, accompanied by a significant 27% increase in trading volume.
Over the last 24 hours, approximately $520 million was liquidated from the cryptocurrency market, predominantly from long positions, which accounted for $449 million of the total. Bitcoin’s open interest also decreased by 0.95% to $82.80 billion, although a majority of Binance futures traders with open BTC positions remained bullish.
In contrast, several lower-cap cryptocurrencies showed resilience, with notable gains over the past 24 hours. Dohrnii (DHN) surged by 43.62% to $5.86, APX (APX) rose 40.45% reaching $0.2769, and Toshi (TOSHI) climbed 39.17% to $2.32. Despite the declines of market heavyweights, the overall cryptocurrency market capitalization stood at $4.01 trillion, reflecting a mild 0.68% drop.
Turning to the stock market, stock futures declined as well. The Dow Jones Industrial Average futures fell by 81 points, or 0.17%, while S&P 500 futures dipped 0.09% and Nasdaq 100 futures decreased 0.03%. In contrast, precious metals saw moderate gains; spot gold rose 0.58% to reach an all-time high of $3,727 per ounce, while spot silver increased by 0.08% to $43.1163 per ounce.
The market has come off a robust week, with the Nasdaq Composite and Dow experiencing gains of 1.49% and 0.73% respectively, thanks in part to the Federal Reserve’s recent interest rate cut. This week, the personal consumption expenditures price index, a key measure that the Fed uses for assessing inflation, is set to take center stage.
Amidst the fluctuations, well-known cryptocurrency analyst Michaël van de Poppe suggested that a short-term correction of 1-2 weeks could occur before a rebound. He advised investors to maintain liquidity on the sidelines to capitalize on potential dips in Bitcoin and Ethereum. Similarly, angel investor Ted Pillows predicted a possible correction of 10%-15% that may help “flush out greedy longs” in Bitcoin, with an optimistic forecast of Bitcoin reaching $150,000 by the end of Q4.
