Bitcoin, XRP, Dogecoin Climb As 'Greed' Sentiment Returns; Ethereum Trades Flat — Analytics Firm Gives Its Take On 'Deep' BTC Correction
Leading cryptocurrencies, including Bitcoin, XRP, and Dogecoin, saw gains as institutional investments surged, with Bitcoin reaching an intraday high of $111,782.28. The market sentiment shifted to 'Greed' following significant BTC purchases by Strategy Inc. and inflows into Bitcoin ETFs. Ethereum remained stable around $4,300, while XRP rose over 3%. Despite a $267 million liquidation in the crypto market, Bitcoin's open interest increased. Analysts suggest the current Bitcoin correction of 12% is typical in bull markets, with expectations for stability ahead of the Federal Reserve's policy meeting.
Leading cryptocurrencies advanced on Tuesday as institutional investors pumped in millions.
‘Greed’ Sentiment Is Back
Bitcoin reached an intraday high of $111,782.28 in early trading hours and subsequently consolidated around that level.
The sentiment improved after leading cryptocurrency treasury company Strategy Inc. MSTR disclosed it purchased about $450 million in BTC.
Additionally, Bitcoin spot exchange-traded funds recorded $260 million in net inflows as of Sept. 2, according to SoSo Value.
Ethereum meandered in the $4,300 region for the most part, even as the coin’s trading volume popped 9% in the last 24 hours. XRP reclaimed $2.80, surging over 3% in the 24-hour period.
Over $267 million was liquidated from the cryptocurrency market in the last 24 hours, with short position traders bearing the brunt of the losses.
Bitcoin's open interest rose 1.46% in the last 24 hours. Over 60% of Binance traders with open BTC positions were long as of this writing.
The market sentiment flipped from "Neutral" to "Greed", according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $3.82 trillion, representing a 1.34% increase over the last 24 hours.
Stocks Fall, Bond Yields Pop
Stocks took a tumble on Tuesday. The Dow Jones Industrial Average fell 249.07 points, or 0.55% to close at 45,295.81. The S&P 500 slipped 0.69% to finish at 6,415.54, while the tech-heavy Nasdaq Composite dropped 0.82% to close at 21,279.63.
The sell-offs followed a surge in bond yields, with the benchmark 10-year Treasury note rising to 4.27% and the 30-year yield exceeding 4.9%.
Investors weighed the latest ruling by the U.S. Court of Appeals for the Federal Circuit, which struck down President Donald Trump’s tariffs.
Ongoing Bitcoin Correction Not A Concern
On-chain analytics firm CryptoQuant noted that Bitcoin has corrected about 12% from its all-time highs.
"On average, the most severe pullbacks have ranged between -20% and -25%," the research firm said. "This current move is therefore not unusual and could continue without breaking the historical pattern."
CryptoQuant added that such corrections are healthy in bull markets, serving to reset excess leverage in derivatives and cool down the overheated mood.
Widely followed cryptocurrency analyst Michaël van de Poppe saw a smaller chance for Bitcoin's correction to continue heading into the Federal Reserve's policy meeting on Sept. 17, especially if the coin breaks through $112,000.
Photo Courtesy: Travis Wolfe on Shutterstock.com
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