Cryptocurrency markets found themselves in a holding pattern on Wednesday as investors absorbed the impact of recent liquidations and eagerly awaited fresh insights from upcoming macroeconomic data. Bitcoin hovered around $112,000 (roughly Rs. 99.3 lakh), while Ethereum maintained its position at approximately $4,100 (roughly Rs. 3.6 lakh). The US Federal Reserve’s latest statements suggested potential policy adjustments, keeping traders on high alert for Federal Reserve Chair Jerome Powell’s upcoming remarks and key economic reports later in the week. This cautious stance reflects the market’s anticipation of new directional cues. For context, Gadgets 360’s price tracker indicated Bitcoin at Rs. 98 lakh and Ethereum at Rs. 3.6 lakh.
Altcoins: A Mixed Bag Amidst Market Consolidation
Echoing Bitcoin’s largely flat trajectory, the wider altcoin market demonstrated limited decisive movement. Solana (SOL) saw a slight dip to $208 (roughly Rs. 18,400), while XRP managed to maintain its ground at $2.84 (roughly Rs. 252). In contrast, Binance Coin (BNB) experienced a modest climb, reaching $1,010 (roughly Rs. 84,000), recording a modest gain over the past day. Dogecoin (DOGE) also held relatively steady at $0.237 (roughly Rs. 23).
Avinash Shekhar, Co-Founder and CEO of Pi42, noted that Bitcoin’s current trading near $112,000 comes after approximately $1.65 billion (roughly Rs. 14,641 crore) in recent liquidations. This event, he explained, revealed an overzealous bullish sentiment and forced traders to re-evaluate their positions. He added, ‘Ethereum might show signs of recovery, buoyed by optimism around AI settlement, though future market indicators still suggest prudence. The central question for the market now is whether Ethereum can achieve a significant rebound and if Bitcoin can establish stability within this range.’ His comments underscore the distinct consolidation phase the market is currently experiencing.
Elaborating on Bitcoin’s immediate trading levels, Mudrex CEO Edul Patel highlighted that Bitcoin is trading within a narrow range of $112,000 (roughly Rs. 99.3 lakh) and $113,000 (roughly Rs. 1 crore). He explained, ‘The market is actively searching for indicators regarding potential future interest rate cuts. While Federal Reserve Chair Powell’s recent remarks leaned slightly hawkish, the upcoming core PCE data on Friday will likely be a crucial factor in shaping market sentiment. Interestingly, there’s been a recent surge in ‘buy the dip’ discussions on social media, hinting at the possibility of new capital flowing into the market.’
The CoinSwitch Markets Desk also weighed in on the macroeconomic landscape, stating that the Fed Chair’s recent comments yesterday signaled a clear prioritization of labor market stability over stringent inflation control. They observed, ‘Markets have reacted by anticipating additional rate cuts this year. This dovish shift could potentially benefit risk assets such as Bitcoin, particularly if forthcoming US economic data continues to indicate softness.’
Consequently, traders are keenly awaiting Powell’s next statements and Friday’s inflation figures for definitive signals. A decisive move above $117,000 (roughly Rs. 1.03 crore) could spark upward momentum, while a drop below $110,000 (roughly Rs. 97 lakh) might prolong the downward trend.