Leading cryptocurrencies edged higher as investors' expectations of interest rate cuts spurred investments in risk-on markets.
What Happened: Bitcoin topped $70,000 and broadly sustained the gains around the level, while Ethereum consolidated after its spike over $3,800. Previously, the two assets faced strong resistance at these levels.
The rally resulted in liquidations worth $97 million in the last 24 hours, with short liquidations accounting for 62%.
The brief surge was enough to catalyze the speculative markets. Bitcoin's Open interest surged 5.85% to an all-time high of $37 billion, reflecting the flow of fresh money into the market.
The number of traders taking bullish long positions on Bitcoin rose dramatically in the last 24 hours, with longs exceeding shorts by a factor of 1.36.
Top Gainer (24 Hour)
The global cryptocurrency market cap increased 2.46% to $2.62 trillion in the last 24 hours.
Stocks inched higher on Tuesday. The Dow Jones Industrial Average rose 140.26 points, or 0.36%, to close at 38,711.29. The S&P 500 gained 0.15% to end at 5,291.34, and the tech-heavy Nasdaq Composite added 0.17% to 16,857.05.
Treasury yields dipped, with the benchmark 10-year note falling by 4 basis points.
The rally comes after weaker-than-expected job openings data for April which fell to its lowest level in three years. This raised investors' optimism for interest rate cuts by the Federal Reserve.
Investors will watch the important May jobs report due on Friday to determine whether the Fed will adopt a more dovish approach.
SeeMore:Best Cryptocurrency Scanners
Analyst Notes: Popular cryptocurrency analyst Rekt Capital flagged one final hurdle for Bitcoin before it enters the "parabolic" phase of the cycle.
The highlighted area is the crucial $72,000–$73,000 zone, which also includes its all-time high set in March.
Cryptocurrency analyst Michaël van de Poppe was bullish on Ether and predicted the upsurge will continue, helped by positive developments around spot ETFs.
Read Next: Mike Novogratz Predicts Bitcoin To $100K By The End Of 2024
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