Crypto Markets Rebound After Two-day Decline

The cryptocurrency market posted modest gains on Wednesday following two consecutive days of losses.

Bitcoin (BTC) rose 3% over the past 24 hours to trade at $96,300, while Ethereum (ETH) and Solana (SOL) gained 7% and 5%, respectively. The total crypto market capitalization ticked up 2.5% to $3.48 trillion.

Over $380 million in leveraged positions were liquidated in the past 24 hours, affecting 132,041 traders, according to CoinGlass.

The Crypto Fear & Greed Index has dipped to 73 (Greed), down from 83 (Extreme Greed) last week, reflecting caution after Bitcoin’s price correction.

Bitcoin’s pullback was attributed to an overextended market. The futures market had built up overleveraged positions over the past week, which analysts believe triggered the correction.

“Bitcoin's retrace can be attributed in part to elevated funding rates, signaling excessively leveraged positions,” noted data analytics platform IntoTheBlock. The platform added that further leverage flushes are likely limited as funding rates have normalized.

“Bitcoin appears to have found a comfortable spot above the $93K mark as the holiday season nears,” wrote analysts at QCP Capital.

Wall Street Rallies Amid Optimism

Wall Street soared to record highs on Wednesday morning after President-elect Donald Trump nominated Scott Bessent as Treasury Secretary.

The Dow Jones Industrial Average climbed 1%, the S&P 500 surpassed 6,000, and the Nasdaq Composite rose 0.75%.

Federal Reserve officials expressed confidence in easing inflation and a strong labor market, signaling room for gradual interest rate cuts. Minutes from the November meeting highlighted the Fed’s optimism despite inflation remaining above its 2% target.

“If the data came in about as expected, with inflation continuing to move down sustainably to 2 percent and the economy remaining near maximum employment, it would likely be appropriate to move gradually toward a more neutral policy stance over time,” the minutes noted.