Leading cryptocurrencies fell, while stocks rebounded on Thursday as investors parsed the hawkish pivot in the Federal Reserve's policy.
Bitcoin fell to the early $62,000s, while Ethereum tumbled to an intraday low of $1,670, extending the broader market declines. XRP and Dogecoin also traded in the red.
Cryptocurrency-related stocks also fell, with Strategy Inc. (NASDAQ:MSTR) and Coinbase Global Inc. (NASDAQ:COIN) closing down 3.46% and 1%, respectively.
Long liquidations surged, accounting for 80% of the total cryptocurrency liquidations in the last 24 hours, according to Coinglass data.
Bitcoin's open interest fell by 2.38% over the last 24 hours. That said, the majority of retail and whale derivatives traders on Binance maintained significantly higher long positions in the apex cryptocurrency
"Extreme Fear" sentiment persisted in the market, according to the Crypto Fear & Greed Index.
The global cryptocurrency market capitalization stood at $2.17 trillion, following a decline of 2.31% over the last 24 hours.
Read Also:Ethereum Dumps Below $1,700 But Hits All-Time Highs In Users, Transactions: What Is Going On?
Stocks bounced back on Thursday. The Dow Jones Industrial Average rose 72.15 points, or 0.14%, to end at 51,564.70. The S&P 500 gained 1.08% to close at 7,500.58, while the tech-focused Nasdaq Composite added 1.91% to settle at 26,517.93.
The comeback rally followed Wednesday's sharp sell-off after the Federal Reserve held the federal funds rate steady at 3.50%-3.75%, with Chair Kevin Warsh striking a notably hawkish tone
The New York Stock Exchange and the Nasdaq will be closed on Friday in observance of Juneteenth National Independence Day.
Why This Level Holds The Key
Widely followed cryptocurrency analyst and trader Ali Martinez reiterated the significance of $64,000 as a key support for Bitcoin within a descending channel on a 1-hour chart.
"Hold it, and $69,000 becomes the next upside target," the analyst projected.