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Leading cryptocurrencies jumped to their multi-month highs on Wednesday as investors parsed CLARITY Act optimism and other macro developments.
Crypto Market Explodes
Bitcoinsurged nearly 8% to touch $70,000, reaching its highest level since early June. Trading volume erupted 161% over the last 24 hours, indicating high buying pressure.
Ethereumsoared to levels not seen since May 12, while trading volume exploded by 346%. XRPand Dogecoin also recorded sharp spikes.
Cryptocurrency-related stocks also soared, withStrategy Inc.(NASDAQ:MSTR) and Bitmine Immersion Technologies Inc.(NYSE:BMNR) closing up 12.68% and 10.72%, respectively.
Growing optimism around aSeptember passage of the CLARITY Act lifted the market and cryptocurrency-adjacent equities
Nearly $3 billion was liquidated from the cryptocurrency market in the last 24 hours, with $2.74 billion in bearish short positions alone wiped out, accordingto Coinglass data. It was the largest single-day short liquidation event in Bitcoin’s history.
Bitcoin’s open interest jumped 5.41% over the last 24 hours. That said, sentiment among BTC’s retail and whale derivatives traders flipped from “Bullish” to “Neutral.”
“Greed” sentiment took over the market, accordingto the Crypto Fear & Greed Index.
The global cryptocurrency market capitalization surged 7.54% over the last 24 hours to $2.37 trillion.
StocksSnap Losing Run
Stocks rebounded sharply on Wednesday. The Dow Jones Industrial Averagerallied 119.65 points, or 0.22%, to close at 53,463.05. The S&P 500 climbed 0.21% to end at 7,707.98,while the tech-focused Nasdaq Composite lifted 0.16% to settle at 26,331.09.
The Treasury said it will increase liquidity support buyback operations for longer-dated bonds from a maximum of $2 billion per operation to at least $4 billion per operation.
‘It’s Just a First Start’
Michaël van de Poppe, a widely followed cryptocurrency analyst and trader, said that the cryptocurrency market is waking up massively, with Bitcoin leading gains, Ethereum showing strength and Solanafollowing closely.
“More Altcoins will start to follow through as confidence comes in and liquidity rotates from Bitcoin towards assets that deserve attention,” Van De Poppe projected.
On-chain analytics firm CryptoQuant noted that Bitcoin’s spot and futures demand have both returned to positive territory for the first time in months
CryptoQuant said that through April and May, only futures demand rose while spot demand “stayed underwater.”
“This time spot is participating. That is the difference,” the firm added. “Leverage can move price. It cannot hold it.”
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