Bitcoin, Ethereum, Dogecoin Steady Amid Stock Meltdown As Fed Chair Jerome Powell Signals Crypto Rules Relaxation: Popular Analyst Identifies Key Support Level For ETH

Leading cryptocurrencies traded flat on Wednesday as Federal Reserve Chair Jerome Powell’s positive comments regarding the industry.

What Happened: Bitcoin reached a high of $85,428.28 in the afternoon but reversed sharply to $83,000, as trading volume dipped 1.28% in the last 24 hours.

Ethereum also had a choppy session, bouncing around $1,500, with the exception of a brief jump above $1,600.

Bitcoin’s market dominance increased to 63.1%, while Ethereum’s share fell to 7.2%.

Over $278 million was liquidated from the market in the last 24 hours, with bullish bets accounting for $160 million.

Bitcoin’s Open Interest dropped 0.13% in the last 24 hours, while the Long/Short Ratio on Binance indicated a higher percentage of traders positioned bullish on the apex cryptocurrency.

The market mood remained one of "Fear," according to the Crypto Fear and Greed Index.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $2.65 trillion, following a marginal increase of 0.41% in the last 24 hours.

Stocks sold off sharply on Wednesday. The Dow Jones Industrial Average plunged 699.57 points, or 1.73%, to close at 39,669.39. The S&P 500 lost 2.24%, ending at 5,275.70, while the tech-focused Nasdaq Composite retreated 3.07% to close at 16,307.16.

The market shuddered after Fed Chair Powell hinted at the growing risk of higher inflation and slower growth due to President Donald Trump's tariffs.

The probability of interest rates remaining unchanged at next month’s central bank meeting rose to 83.1% from 81.4% the day before, according to the CME FedWatch tool.

In another development, Powell said that the U.S. was preparing to relax certain cryptocurrency and banking rules and that the industry has matured and become more mainstream.

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Analyst Notes: Popular on-chain analytics firm CryptoQuant noted that the pace of Bitcoin accumulation has reached a two-month low, while outflows have increased.

"Whale holdings fell by 30,000 BTC this week. Miner outflows hit 15,000 BTC on April 7 as margins sank to 33%. Accumulation is now at its lowest pace since February," CryptoQuant added.

Amid Ethereum's stagnation, influential cryptocurrency analyst Ali Martinez identified levels of interest to watch for.

"$1,528.50 is a key support level for Ethereum, where 2.61 million addresses accumulated over 4.82 million $ETH," Martinez stated.

Photo Courtesy: Paopano On Shutterstock.com

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