The cryptocurrency market traded largely sideways on Wednesday, with Bitcoin, XRP and Dogecoin posting modest gains while Ethereum moved lower. Softer U.S. private-sector employment data also reduced expectations for another Federal Reserve rate hike later this month.
Crypto Market Remains Muted
Bitcoin was little changed during the session, rising 0.14% over 24 hours to $77,532.54 as of 9:15 p.m. EDT. Trading volume declined 13% during the same period, while Bitcoin remained down 1.68% over the past week.
Ethereum fell 0.95% to $2,389.24 after failing to sustain levels above $2,400 earlier in the session. The cryptocurrency dropped to an intraday low of $2,356.
Other major cryptocurrencies posted modest gains. XRP climbed 0.89% to $1.35, while Solana gained 0.41% to $100.13. Dogecoin advanced 0.77% to $0.08184.
Crypto-linked stocks also ended lower. Strategy Inc. declined 1.35%, while Bitmine Immersion Technologies fell 1.33%.
According to Coinglass data, more than $280 million worth of cryptocurrency positions were liquidated over the previous 24 hours, with long-position traders accounting for most of the losses.
Bitcoin open interest declined 0.35% over the same period. Despite the market correction, sentiment among both retail and large derivatives traders remained notably bullish.
Smaller Tokens Lead Gains
Several cryptocurrencies with market capitalizations above $100 million recorded stronger gains during the session.
Akedo was the biggest gainer, surging 72.11% to $0.01518. MultiversX rose 25.20% to $5.02, while Cash Cat advanced 22.02% to $0.2747.
Overall, the global cryptocurrency market capitalization fell 1.74% over 24 hours to approximately $2.60 trillion.
Stocks Rebound as Rate-Hike Expectations Ease
U.S. stocks recovered on Wednesday after recent losses, with all three major indexes ending the session higher.
The Dow Jones Industrial Average gained 295.07 points, or 0.56%, to close at 53,061.95. The S&P 500 rose 0.46% to 7,666.60, while the Nasdaq Composite advanced 0.45% to finish at 26,217.83.
The market response followed new employment data showing that U.S. private payrolls increased by just 38,000 in August, marking the weakest monthly job growth since January.
The weaker employment reading also affected expectations for Federal Reserve policy. According to the CME FedWatch Tool, the probability of a rate hike to the 3.75%-4.00% range at the Fed’s meeting later this month declined from 67% to 62.3% over a 24-hour period.
Bitcoin Whales Continue Buying the Dip
Despite Bitcoin’s recent pullback, large investors appear to be using the weakness as an opportunity to accumulate.
Cryptocurrency analyst and trader Ali Martinez said whales have continued buying Bitcoin during the correction. According to Martinez, large holders accumulated approximately 6,765 BTC, worth about $521 million, as Bitcoin fell from $81,474 to $76,732.
The continued whale accumulation suggests that some large investors remain confident in Bitcoin’s longer-term outlook despite short-term volatility.
For now, the crypto market remains caught between near-term selling pressure and persistent demand from larger investors, while changing expectations around Federal Reserve policy could remain an important driver for Bitcoin and other risk assets.
