Leading cryptocurrencies rose in tandem with stocks on Monday, as investors increased their risk appetite ahead of key inflation data reports.

Bitcoin rose to an intraday high of $112,869.24 before falling back to the early $111,000s overnight. The leading coin’s trading volume jumped 58% to $40 billion over the last 24 hours.

SEC filings showed Strategy Inc. MSTR purchased about $217.4 million in Bitcoin last week, financed through its at-the-market programs.

Ethereum followed a similar trajectory, retreating after hitting an intraday high of $4,381.28. Trading volume surged 76% in the 24-hour period. XRP rose 2.82% over the previous day.

Bitcoin’s dominance narrowed to 57.5%, while Ethereum’s market share remained steady just above 13%.

Over $330 million was liquidated from the cryptocurrency market in the last 24 hours, with $209 million in bearish shorts erased. 

Bitcoin’s open interest rose 2.48% in the last 24 hours, aligning with the slight jump in spot price. Over 60% of Binance’s top traders, or the top 20% of users with the biggest margin balance, had long positions in BTC.

The overall market sentiment remained “Neutral,” according to the Crypto Fear & Greed Index.

Top Gainers (24 Hours)

The global cryptocurrency market capitalization stood at $3.87 trillion, surging by 1.09% in the last 24 hours.

Stocks started the fresh trading week on a high. The Dow Jones Industrial Average rallied 114.09 points, or 0.25%, to close at 45,514.95.. The S&P 500 lifted 0.83% to finish at 6,502.08, while the tech-focused Nasdaq Composite closed up 0.45% at 21,798.70, marking a record closing high.

This week, investors will be watching key inflation data, such as the consumer price index and the producer price index, for hints about the direction of monetary policy.

Traders priced in a 89.4% chance of a 25 basis point rate cut in the Federal Reserve meeting next week, according to the CMC FedWatch tool.

Widely followed cryptocurrency analyst Michaël van de Poppe noted Bitcoin’s struggle to stay above its 20-week moving average near $112,000.

“It’s a crucial one, just like $112,000 and the constant pushbacks show why it’s important,” the analyst added. “If we can’t break it again, just before CPI, I assume we’ll see one more test of the lows & reverse back up.

Ted Pillows, an angel investor and cryptocurrency market observer, compared Ethereum’s ongoing correction from its all-time high to Bitcoin’s 25%-30% drop in 2020.

“A similar 25%-30% correction in ETH will send it around $3,500-$3,700, which is also its bull market support band,” Pillows predicted. “After that, a quick reversal will happen along with the parabolic rally in Q4.”

Photo Courtesy: Travis Wolfe on Shutterstock.com

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