Bitcoin remained rangebound, while Ethereum and Dogecoin gained Wednesday, as investors pin hopes on incoming inflation numbers to move the cryptocurrency market.

What Happened: Bitcoin briefly spiked beyond $59,000 in the early hours before retreating to the $57,000 zone by afternoon. The world’s largest cryptocurrency has been on a month-long downtrend, causing a complete U-turn from the $70,000 level hit in June.

Ethereum also rose above $3,100 during early trading hours, only to bend and stabilize in the 3,000s.

King Crypto has been pushed down by the German government dumping Bitcoin holdings, but a new analysis suggests that additional damage could be limited.

Over $93 million invested in open positions was liquidated in the last 24 hours, with nearly equal numbers of long and short bets liquidated.  

Bitcoin’s Open Interest rose marginally by 0.73%, mirroring the price trajectory, while Ethereum’s OI soared by 2.22%. This indicated influx of new money into the derivatives market.

Nearly 60% of the market was bullish on Bitcoin, with 26% having a negative view. About 15% of the traders were neutral, as per Coinglass. 

Top Gainers (24-Hours)

The global cryptocurrency market cap is $2.12 trillion, following a marginal expansion of 0.30% in the last 24 hours.

Stocks rallied sharply Wednesday to record new highs. The S&P 500 gained 56.93 points, or 1.02%, to close at 5,633.91. This was the broader market index’s first move above 5,600. The tech-focused Nasdaq Composite surged 1,18% . also hitting a record close at 18,647.45. The Dow Jones Industrial Average added 1.09% to end at 39,721.36. 

The gains come ahead of the release of key inflation data, which is expected to be one of the biggest market moves for both cryptocurrencies and stocks. The consumer price index for June will be issued on Thursday, followed by the producer price index on Friday.

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Analyst Notes: Popular cryptocurrency trader Kevin noted that the bias would remain neutral/bearish until Bitcoin registers a weekly close above $65,300 and holds on to that for some time. 

“We have a lot of work before we can feel any excitement again about this current structure. It’s just the reality of the moment,” the analyst emphasized. 

Another widely followed position trader Bob Loukas highlighted the likelihood of an Ethereum season after months of underperformance vis à vis Bitcoin.

“Now we have an ETH ETF that didn’t see a pricing in event.  We have tradfi talking tokenization, likely on ETH. We could see very favorable regulations if a new admin comes into play,” the trader said, underlining several potential bullish catalysts.

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