Bitcoin has stabilized around $113,000, while Ethereum trades around $4,200.
The crypto market has been cautious despite interest rate cuts last week, with analysts paying attention to increasing impatience and bearish feelings among retail investors.
Data from Defiant’s pricing page shows that Bitcoin (BTC) is still trading in the $112,000 to $113,000 range, and is almost flat for the day. Ethereum (ETH) is down 0.3% at $4,182.
The other top ten altcoins by market capitalization also show mixed results. XRP is up 0.6% to $2.88, while BNB is up 1.1% to trade at around $1,016. However, Solana (Sol) fell 3% to $212, losing more than 9% in a week, the largest reduction between groups within that time frame.
The biggest winner in the top 100 in the last 24 hours was Flare (FLR), with a market capitalization of 19% up by $2 billion, and the biggest loser was Mantle (MNT) which fell 7% in the same time frame per Coingecko data.
In a research note on Wednesday, a QCP Capital analyst proposed that “the risk of bottom movement is real” as the initial cuts are currently priced and Europe and Japan are no longer clear about outperformers.
They added “it’s softened at the end of the year on differences and further mitigation,” but the rebound after form last week is a reminder that roads are likely to be choppy.”
Meanwhile, Santimento pointed out in a memo on Tuesday that there was a massive “impatience and bearishness coming out of the retail crowd” on social media, saying, “If you’re patiently waiting for a breakout as other small traders drop out, it’s a strong sign.”
Liquidation, ETFs, and macros
Leveraged positions are under pressure, with liquidation of approximately $288 million recorded over the past 24 hours, Coinglas data shows. ETH liquidated $68.5 million, followed by BTC of over $52 million, Sol of over $31 million, and other Altcoins led by over $28 million.
Upstart Dex Aster’s Native Token Aster also ranked in the top five in liquidation, returning to $2.29 per Coingecko after over $16 million was briefly touched at a record high of $2.40.
The spill from Exchange-Traded Funds (ETF) was extended on the second day, with SoSovalue data showing $133.6 million on September 23, and the Spot Ethereum ETF recorded more than $140 million, nearly doubleping it to $76 million on Monday.
As GlassNode analysts pointed out in a post Wednesday, the overall accumulation remains, but the slowdown in ETFs “suggests a pause in institutional demand.”
The macro conditions are also weighted to sentiment, as Fed Chairman Jerome Powell said on Tuesday at an economics event in Warwick, Rhode Island, that policymakers are calling it a “challenging situation” per CNN, facing the dual challenge of “potentially high inflation and slowing labor markets.”
The Fed chief added that it is a “rational basic incident” to view tariff inflation as a one-off, but “uncertainty about the inflation path remains high,” adding that “we need to make sure this one-off price rise does not become a problem of continuous inflation.”