The cryptocurrency market recovered on Wednesday, with Ethereum becoming the strongest performer.
Ethereum jumped 7% in the past 24 hours, trading at $3,836, while Bitcoin, the largest cryptocurrency by market cap, gained 1%, hitting $96,719, according to CoinGecko data .
The Crypto Fear & Greed Index reads “Extreme Greed” at 78, up from 75 last week when it read “Greedy.” The index ranges from 1 (“Extreme Fear”) to 100 (“Extreme Greed”), reflecting the emotional state and market sentiment.
Solana, often referred to as the “Ethereum killer,” also rose 2%, pushing the total cryptocurrency market cap to $3.73 trillion.
Crypto analyst Michaël van de Poppe noted the growing momentum in Ethereum, noting a bullish divergence on the ETH/BTC relative strength index (RSI).
“ETH is showing a ton of momentum as it faces its first resistance,” he said. “I’m pretty happy that we’re seeing this here, and I expect the entire Ethereum ecosystem to see massive momentum.”
Bitcoin prices fell on South Korean exchanges after President Yoon Suk Yeol declared martial law in a live speech.
The president cited threats from North Korea’s “anti-state elements” and “communist forces” to justify the drastic move. This announcement triggered immediate disruption in the market.
On Upbit, South Korea’s largest cryptocurrency exchange, Bitcoin prices fell to $65,000, representing a $30,000 reduction compared to global prices.
Paul Howard, senior director at Wincent, explained to The Street Roundtable the dynamics behind the price drop.
“With a flight from risk assets, overnight we saw BTC trading at a near 30% discount domestically, presenting a classic arbitrage opportunity. Market arbitrageurs can help manage such volatility, but current regulations are very clear, so the impact on global market prices has been limited, with the country contributing an average of 5% of the market share. , he declared.
Market volatility led to the liquidation of 164,346 traders in the past 24 hours, totaling $418.73 million, according to CoinGlass data. Ethereum short positions amounted to $48 million, significantly impacting leveraged traders. A short position refers to a strategy in which a trader bets that the price of an asset will fall.
The S&P 500 climbed 0.6%, while the Nasdaq Composite rose 1.2%. Meanwhile, the Dow Jones Industrial Average added a 0.7% gain.
Investors are now turning their attention to U.S. jobs data due Friday, with analysts polled by Dow Jones expecting 214,000 jobs to have been created in November.
Investors are closely watching U.S. jobs data because it provides insight into the health of the economy and job market. Strong job growth signals economic resilience, which could influence the Federal Reserve’s decisions on interest rates and monetary policy.
