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Leading cryptocurrencies rallied, while stocks closed at new records on Wednesday on the Iran ceasefire extension, even as Strait of Hormuz tensions simmer.
Crypto Market Gains Momentum
Bitcoin nearly topped $80,000 before easing off to the low $78,000s. Trading volume spiked 36% over the last 24 hours.
Ethereum topped $2,400, also supported by strong buying pressure, while XRP and Dogecoin moved sideways.
Over $460 million was liquidated in the past 24 hours,with $350 million in bearish positions alone wiped out, according to Coinglass data.
Open interest in Bitcoin futures rose 8.64% over the last 24 hours to $61.57 billion. Whale and retail traders on Binance, however, were "extremely bearish" on BTC, placing more shorts than longs.
"Fear" sentiment persisted in the market, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.61 trillion, following an increase of 1.65% in the last 24 hours.
Stocks Close At New Highs
Stocks surged back to record highs on Wednesday. The Dow Jones Industrial Average lifted 340.65 points, or 0.69%, to end the session at 49,490.03. The S&P 500 rose 1.05% to a record close of 7,137.90, while the tech-heavy Nasdaq Composite lifted 1.64% to end at 24,657.57, also hitting an all-time high.
Meanwhile, the U.S. , with the military intercepting at least three Iranian-flagged tankers in Asian waters, according to a report by Reuters.
Oil prices sharply rose back up, with West Texas Intermediate crude futures climbing to $97 per barrel before retreating to $93 later in the session.
Real Rally To Begin Soon?
Widely followed cryptocurrency analyst and trader Ali Martinez noted Bitcoin forming a "bullish reversal pattern."
The Morning Star candlestick pattern typically appears at the bottom of a downtrend, signaling a potential shift from selling pressure to buying momentum.
"Even though it’s a strong signal, the data shows that price often takes a small “breather” [averaging around 8%] shortly after the move before the real rally begins," the analyst added.
Julio Moreno, Head of Research at CryptoQuant, interpreted Bitcoin’s recent price increase as "completely driven" by the perpetual futures market, while spot demand stayed lukewarm.
"There are risks of a correction if traders start taking profits while spot demand continues to contract," Moreno predicted.
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