The cryptocurrency market experienced a modest rebound on Monday, with major coins including Bitcoin (BTC) and Ethereum (ETH) showing gains after a week of volatility. Positive data from the United States regarding economic growth and employment figures has tempered expectations for further interest rate reductions from the Federal Reserve, prompting interest from both institutional and retail investors.
Currently, Bitcoin is trading near $113,853, reflecting a 3.9% increase for the day. Ethereum saw a slightly larger rise, climbing over 4% to around $4,175, as reported by The Defiant. Paul Howard from Wincent noted, “There has been strong support among both institutional and retail players at the $110,000 mark for BTC, particularly from those who missed the earlier $100,000 rally. However, the overall macro landscape remains somewhat uncertain, suggesting caution.”
The altcoin market has outperformed the major cryptocurrencies, with Solana rising nearly 5% to $210, and XRP witnessing a 4.5% increase, trading at $2.90. Notably, Binance Coin (BNB) and Cardano (ADA) both saw gains of 4.4%, reaching $1,020 and $0.80, respectively. Meanwhile, Dogecoin, the leading memecoin, recorded a 3% uptick to $0.23, although TRON experienced a slight decline, down by 0.5% to $0.30. Among lesser-known tokens, pumpfun’s PUMP surged by an impressive 11% to $0.005, while Mantle’s MNT increased by 9% to $1.89.
Despite the overall positive trend, some tokens have struggled. Plasma’s XPL fell nearly 11% to $1.30 just one week after its launch, and Provenance Blockchain’s HASH decreased by 8.5%, now valued at $0.03. Overall, the total market capitalization of cryptocurrencies rose by 3.2% over the past 24 hours, reaching $4 trillion, with Bitcoin maintaining a dominance of 56.6% and Ethereum at 12.6%.
In terms of market dynamics, the past day witnessed approximately $434 million worth of crypto positions liquidated, according to Coinglass. Long positions were hit particularly hard, with over $104 million liquidated, while shorts accounted for around $330 million. Ethereum led in liquidations at nearly $151 million, with Bitcoin following at approximately $95 million, and Solana reaching around $42 million.
Investment products are facing considerable outflows; spot Bitcoin ETFs saw $418 million withdrawn on September 26, marking a second consecutive day of losses. Spot Ethereum ETFs recorded over $248 million in outflows, extending their withdrawal streak to five days with a total of $796 million removed during this period. Digital asset investment products overall experienced $812 million in outflows in the previous week. However, strong year-to-date inflows remain robust at approximately $39.6 billion, nearly matching last year’s record, as per CoinShares’ Fund Flows report.
This latest market movement comes amidst macroeconomic uncertainties, with recent strong growth and employment numbers in the U.S. diminishing the likelihood of further interest rate cuts from the Federal Reserve. Additionally, concerns over a potential government shutdown this week have left many traders cautious. Analysts suggest that some are taking advantage of lower prices, while others are opting to remain cautious. Experts from Bitunix remarked, “The Fed’s dovish shift holds medium-term positives, yet the warnings from Fed Chair Jerome Powell and the risk of a government shutdown suggest that market participants should exercise caution in the short term.”
