While the global crypto market cap fell 0.6% to $963.8 billion as of 8:27 p.m. ET, major currencies edged higher on Wednesday night.
Also Read: How to Get Free Cryptocurrency
Why It Matters: Bitcoin and Ethereum are trading higher as the stock market ended a two-day rally on Tuesday. US stock futures are also slightly higher at the time of writing.
The ISM Services PMI, an index measuring the direction of economic trends in the services sector, fell to 56.7 in September from 56.9 in August, but beat market estimates.
“The economy is too strong for the Fed to reverse. A strong start to October ended as the private payrolls report and services data reminded investors how strong the economy remains,” said Edward Moya , chief market analyst at OANDA.
Speaking on Bitcoin, Moya said: “The strong start to October was over and markets were quickly reminded that key calls from the Fed were again premature. Traders were quickly reminded that the economy did not fall off a cliff and that the Fed may need to stay aggressive in its rate hike cycle next year.
“Bitcoin fundamentals are still supporting healthy consolidation here and should remain so until we see strong double-digit hires on Friday and higher-than-expected inflation next week.”
Cryptocurrency trader Mikael van de Poppe said that Bitcoin entered a “long zone” here after a correction. "Certainly interesting," he tweeted, referring to the Apex Coin chart.
Referring to a chart of the total cryptocurrency market cap, Justin Bennett said that the June trend line reset on Tuesday. The trader previously tweeted that the total market cap is expected to surpass $923 billion daily.
Glassnode said that Whales' estimate of the amount of bitcoin going in and out of exchanges (more than 1,000 BTC in total) could help them cover their costs.
"The average price of whale deposits and withdrawals since January 2017 is currently around $15,800," the analyst firm said.
According to Santiment, the number of newly created addresses on the Ethereum side is still around 70,000 per day. The market news platform announced on Twitter that this was the highest value since the beginning of August.
“Following significant uncertainty surrounding [the merger] in mid-September, $ETH supply fell to 14.6% on exchanges,” Sentiment said, noting supply normalization.
Read more: Ethereum Towers announces the launch of NFT Flats