Market News

BY  James Van Straten

Crypto prices experienced a rare spike higher just after U.S. stocks opened for trade on Wednesday, taking bitcoin (BTC) back above the $90,000 level for the first time since last weekend.

Among possible bullish catalysts were continued big gains in metals prices, with silver ahead about 5% to a new record above $66 per ounce. Gold and copper were also each higher by more than 1%.

Now leading in prediction markets to be the next chairman of the Federal Reserve, current Fed Governor Chris Waller was on the tape with dovish remarks, suggesting the neutral fed funds rate was 50-100 basis points below the level. He added that the U.S. now is close to zero jobs growth and that he doesn't expect a rebound in inflation.

According to Coinglass data, open interest fell from 669k BTC to 665k BTC while the price moved higher. This suggests shorts are covering rather than new leverage entering the market. The move looks like a delveraging rally, driven by shorts closing positions instead of fresh longs piling in.

All told, bitcoin is now ahead about 3% over the past 24 hours. Bitcoin bulls could be forgiven for any excitement over what isn't that large of a move. Muscle memory over the past several weeks, however, has trained crypto fans to brace for sizable drawdowns during the U.S. market day, particularly around the open. Any sustainable change to that pattern would surely be notable.

The major U.S. stock market averages are little-changed early in their session and the 10-year U.S. Treasury yield is lower by two basis points to 4.15%.