Cryptocurrency Prices Decline as Stock Market Rallies

On Wednesday, major cryptocurrencies experienced a drop, contrasting with the gains seen in the stock market. This divergence comes as expectations grow regarding potential moves from the newly established Donald Trump administration.

Cryptocurrency	Gains +/-	Price (Recorded at 7:30 p.m. ET)
Bitcoin BTC/USD	-2.33%	$103,392.39
Ethereum ETH/USD	-2.13%	$3,255.66
Dogecoin DOGE/USD	-1.94%	$0.3612

Market Movements: Bitcoin saw a gradual decline from a peak of $107,000 reached the previous day, hitting an overnight low of $102,561. Similarly, Ethereum's value fell by over 2% in the last day, marking a weekly loss exceeding 5%.

Despite the launch of a dedicated cryptocurrency task force by the SEC, led by acting Chairman Mark Uyeda, investor enthusiasm has waned due to the absence of any cryptocurrency-related executive actions from Trump.

In the past day, about 96,027 traders faced liquidation, leading to an overall loss of $185.56 million, which included $133.52 million in wiped-out long positions.

The decline in long positions correlated with a 3.06% drop in Bitcoin's Open Interest within the last 24 hours.

A potential rebound to the previous high of $107,000 could trigger the liquidation of approximately $565 million in short positions currently held in the market.

Over the past day, the investor sentiment cooled from "Extreme Greed" to "Greed," as indicated by the Crypto Fear & Greed Index.

Top Gainers in the Last 24 Hours

Cryptocurrency	Gains +/-	Price (Recorded at 7:30 p.m. ET)
XDC Network (XDC)	+14.13%	$0.1318
Worldcoin (WLD)	+8.21%	$2.28
Pudgy Penguins (PENGU)	+5.10%	$0.02501

The total market capitalization of cryptocurrencies was reported at $3.62 trillion, reflecting a 3.62% increase over the last 24 hours.

In contrast, the stock market continued its upward trajectory for the second consecutive day. The Dow Jones Industrial Average rose by 130.92 points (0.30%), concluding at 44,156.73. Meanwhile, the S&P 500 climbed by 0.61%, finishing at 6,086.37, just shy of its record closing highs. The tech-driven Nasdaq Composite gained 1.28%, closing at 20,009.34.

Shares of artificial intelligence-related companies, particularly Nvidia Inc. (NVDA), surged after President Trump unveiled a $500 billion initiative aimed at boosting the AI sector in the U.S., leading to a 4.43% increase in Nvidia's stock price during Wednesday's trading.

Expert Insights

Renowned cryptocurrency analyst Rekt Capital remarked that Bitcoin appears to be in a re-accumulation phase, indicating a potential for a future trend continuation toward new all-time highs.

The analyst noted that the last significant re-accumulation occurred following Bitcoin's halving, after which it surged by 46%. If historical trends repeat, Bitcoin could reach approximately $150,000.

In addition, popular trader Michaël van de Poppe expressed bullish sentiments for Ethereum, primarily due to considerable buying activity by World Liberty Financial, a decentralized finance platform with ties to Trump.

"World Liberty's extensive purchases of ETH enhance my optimism for this asset. I foresee it performing well as we advance into 2025," he stated.

Overall, the cryptocurrency market is showcasing fluctuations influenced by stock market dynamics and expectations surrounding regulatory changes.

cryptocurrency, bitcoin, stocks