Bitcoin, Ethereum, Dogecoin Sink Amid Stocks Decline, Treasury Yields Climb: Analyst Sees 'Promising Signs' — Retest 'Successful' If King Crypto Stays Above This Level – Benzinga

Leading cryptocurrencies joined stocks in a broader sell-off on Wednesday as the market lost momentum seen at the beginning of the week.

What Happened: Bitcoin plummeted as low as $65,188 during trading hours before recouping losses overnight. 

Ethereum sank below $2,500 for the first time in nearly 10 days, hitting an intraday low of $2,463. Over the last week, Bitcoin’s dominance has steadily increased at the cost of Ethereum and other altcoins. 

Total cryptocurrency liquidations topped $277 million in the last 24 hours, the highest in a week. Upside bets to the tune of $203 million were wiped out.

Bitcoin’s Open Interest dropped 0.87% in the last 24 hours, while Ethereum recorded a 1.15% decline in funds locked in unsettled contracts.

That said, the number of traders longing Bitcoin significantly exceeded those betting against the cryptocurrency, as per the Long/Shorts Ratio.

Additionally, market participants remained greedy as of this writing, according to the Cryptocurrency Fear & Greed Index.

Top Gainers (24-Hours)

The global cryptocurrency stood at $2.28 trillion, following a drop of 2.19% in the last 24 hours.

Stocks recorded a third straight session of losses. The Dow Jones Industrial Average plunged 409.94 points, or 0.96%, to end at 42,514.95. The S&P 500 slipped 0.92% to close at 5,797.42, while the tech-heavy Nasdaq Composite fell 1.60% to 18,276.65.

The benchmark 10-year Treasury yield continued its climb, briefly exceeding 4.25%, its highest since last week of July. Interestingly, the yield has risen significantly since the aggressive 0.5% interest rate cut enacted by the Federal Reserve last month. 

Meanwhile, investors expected a 91% chance of a 25 basis point rate cut during the next FOMC meeting, as per the CME FedWatch tool.

See More: Best Cryptocurrency Scanners

Analyst Notes: Popular cryptocurrency analyst and trader Rekt Capital said that the ongoing retest would be deemed “successful” if Bitcoin managed to stay above $66,200 until the new weekly close.

“Promising signs so far,” the trader remarked.