Bitcoin Hits 20-Month Low, Ethereum, Dogecoin, XRP Also Decline: Analyst Identifies 'Genuine Battleground' For Beleaguered BTC Amid 'Extreme Fear'

Leading cryptocurrencies retreated further on Wednesday as investors awaited the crucial inflation report for guidance on the direction of interest rate cuts.

Crypto Bloodbath Continues

Bitcoin fell below $60,000 for the first time since October 24, as trading volume popped 40% over the last 24 hours. The apex

cryptocurrency

is now down more than 51% from its record highs.

Ethereum fell to an intraday low of $1,550 before paring some of its losses overnight. XRP and Dogecoinalso traded in the red.

Nearly $1 billion was liquidated from the cryptocurrency market in the last 24 hours, with $800 million in bullish long positions alone wiped out, according to Coinglass data

Bitcoins open interest rose 0.37 over the last 24 hours. An increase in open interest, alongside a drop in spot price, typically signals that new short sellers are entering the market, hoping for the decline to continue.

“Extreme Fear” sentiment intensified, returning to levels seen earlier this month, according to the Crypto Fear & Greed Index.

Top Gainers (24 Hours)

The global cryptocurrency market capitalization stood at $2.09 trillion, representing a 2.74% decline over the last 24 hours.

StocksFall Alongside

Stocks extended their slide on Wednesday. The S&P 500fell 0.10% to end at 7,358.22,while the tech-heavy Nasdaq Compositedipped 0.43% to settle at 25,476.6. The Dow Jones Industrial Averagewas the outlier, rallying 182.06 points, or 0.35%, to end at 51,848.90.

Investors will closely watch Thursday‘s , considered the Federal Reserve’s preferred measure of inflation, for guidance on the central banks interest rate policy.

The CME Groups FedWatch tool showed markets pricing a 50% likelihood of the Fed increasing rates during the September meeting.

Why This Level Is A ‘Battleground’ For $BTC

Rekt Capital, a widely followed cryptocurrency analyst and trader, warned that Bitcoins daily close below the red-shaded band, around $60,000, and a subsequent bearish retest could confirm further downside.

On-chain analytics firm CryptoQuant highlighted that Bitcoins drop below $60,000 triggered a “new wave of panic” among some investors, prompting them to move their $BTC back to exchanges, representing “persistent” short-term selling pressure.

“The $60,000 level has gradually become a genuine battleground, where the confrontation between weak hands and strong hands is at its most intense,” the firm added.