Bitcoin, Ethereum, Dogecoin Mirror Stock Declines Ahead Of Crucial Inflation Data Release: Top Analyst Says ‘Buy The Dip,’ Predicts $275K BTC Target
By Benzinga
Leading cryptocurrencies and stocks slumped for a second straight day on Tuesday as investors awaited the release of a key inflation report.
| Cryptocurrency | Gains +/- | Price (Recorded at 7:30 p.m. ET) |
| Bitcoin (CRYPTO: BTC) | -1.87% | $96,200.49 |
| Ethereum (CRYPTO: ETH) |
-4.59% | $3,601.65 |
| Dogecoin (CRYPTO: DOGE) | -3.92% | $0.3943 |
What Happened: Bitcoin plunged to $94,300 in the early trading hours but pared losses by rebounding above $96,000 overnight.
Ethereum followed a similar trajectory, plunging from $3,750 to $3.522 before recouping some losses in the second half.
Cryptocurrency liquidations exceeded $625 million in the last 24 hours, with long liquidations accounting for $484 million.
Over $700 million in longs further risked liquidation if Bitcoin pulls back to $90,000. On the contrary, a spike to $100,000 would wipe out $719 million worth of short positions.
Bitcoin’s Open Interest fell by 3.33% in the last 24 hours, while the number of traders longing the asset also fell, as evidenced by the drop in the Long/Short ratio.
Market sentiment remained in the “Greed” zone, as per the Cryptocurrency Fear & Greed Index
Top Gainers (24-Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 7:30 p.m. ET) |
| XDC Network (XDC) | +19.52% | $0.09279 |
| MANTRA (OM) | +14.73% | $4.04 |
| Raydium (RAY) | +12.60% | $4.92 |
The global cryptocurrency market capitalization stood at $3.43 trillion, contracting by 0.80% over the last 24 hours.
Major stock averages closed in the red for the second straight day. The Dow Jones Industrial Average dropped 154.10 points, or 0.35%, to close at 44.247.83. The S&P 500 slid 0.30%, ending at 6,034.91, while the tech-focused Nasdaq Composite dipped 0.25% to end at 19,687.24.
The decline came ahead of the crucial consumer price index data for November, which is due on Wednesday, as investors sought hints ahead of the Federal Reserve’s policy decision next week.
Market participants expected an 85% chance of a 25 basis point rate cut, according to the CME FedWatch tool.
See More: Best Cryptocurrency Scanners
Analyst Notes: Influential cryptocurrency analyst and trader Ali Martinez stressed the importance of Bitcoin staying above $96,000 or risk falling to as low as $85,000
He also advised his followers to buy the dip and avoid overleveraging, as he projected a price target of $275,000
Another widely followed trader, going by the pseudonym DevKhabib, anticipated another dip for Ethereum before a strong rally.
“We bounced off $3,500 strongly, but as we approach the 3-year trend line, I wouldn’t be surprised to see another flush,” the trader remarked. “After that, it’s up only season, everything will pump.”
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