The cryptocurrency appears to have stabilized around $114K, but the same can’t be said for the stock market, which edged lower as tech stocks continued to underperform.
Traditional Markets Plunge, But Bitcoin Remains Steady
Bitcoin ( BTC) hovered around $114K on Wednesday afternoon while stocks fell across all major indices for a second consecutive day. Palantir Technologies (Nasdaq: PLTR) was one of the notable stragglers among equities, shedding roughly 2% over 24 hours and more than 15% in the last five days.
Both stock and crypto markets have traversed choppy waters this week, but for now, it seems digital assets are outperforming their traditional counterparts. The broader crypto ecosystem was up 1.48% at the time of writing, according to Coinmarketcap. Meanwhile, the S&P 500 and Nasdaq were both in the red and the Dow managed to stay mostly unchanged.
Bitcoin was also unchanged and seems to have reached a bottom at $113K. The cryptocurrency’s correlation with stocks has once again jumped as the digital asset gains more mainstream notoriety. Just yesterday, U.S. Federal Reserve Governor Michelle Bowman suggested the central bank should acquire crypto to help staff better understand it.
“Our approach should consider allowing Federal Reserve staff to hold de minimus amounts of crypto or other types of digital assets so they can achieve a working understanding of the underlying functionality,” Bowman said in a speech at the 2025 Wyoming Blockchain Symposium in Teton Village, Wyoming. “I certainly wouldn’t trust someone to teach me to ski if they’d never put on skis.”
Overview of Market Metrics
Bitcoin was trading at $113,611.92 at the time of reporting, mostly flat but slightly up by 0.14% over 24 hours but lower by 6.67% for the week, according to Coinmarketcap. BTC’s price has been moving between $112,387.96 and $114,443.24 since Tuesday.
Trading volume edged higher at $71.13 billion, up by 2.6% over the last 24 hours. Market capitalization was practically unchanged for the day, up by only 0.16%. Bitcoin dominance fell 0.98% since yesterday and stood at 59.50% at the time of writing.
Total bitcoin futures open interest dropped for the second day in a row, dipping to $80.61 billion, a 0.72% decrease. Coinglass data also showed that bitcoin liquidations reached a total of $107.66 million. Long and short liquidations were relatively balanced at $48.49 million for the former and $59.17 million for the latter, suggesting mixed sentiment regarding the cryptocurrency’s short-term direction.