Bitcoin continued to make records as supportive inflation numbers raised the market’s expectations of further interest rate cuts by the Federal Reserve.

What Happened: The world’s largest cryptocurrency sailed above $93,000 during U.S. trading hours Wednesday, before a sharp correction into the $89,000 zone.

Bitcoin’s dominance rose to 60%, reflecting that investors were far more confident in it than other cryptocurrencies.

Ethereum also rallied to an intraday high of $3,366, later cooling down to $3,190, as investors began cashing out.

Nearly $850 million in derivatives contracts was erased in the last 24 hours, with leveraged longs accounting for 61% of the total.

Bitcoin’s Open Interest (OI) rose 2.30% in the last 24 hours, signaling higher speculative interest. 

Most top trader accounts on Binance were still positioned for Bitcoin’s decline, as seen from the Long/Short Ratio indicator.

The “Extreme Greed” sentiment strengthened as the reading on the Cryptocurrency Fear and Greed Index rose from 84 to 88.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $2.98 trillion, following an increase of 1.32% in the last 24 hours.

Stocks ticked slightly higher on Wednesday. The Dow Jones Industrial Average rose 47.21 points, or 0.11%, to close at 43,958.19. The S&P 500 gained 0.02% to end at 5,985.38. The tech-heavy Nasdaq Composite registered the second straight day of decline, closing down 0.26% at 19,230.72.

Consumer Price Index (CPI) rose from 2.4% in September to 2.6% in October, in line with economist predictions. Investors raised the odds of a 25 basis-point cut at next month’s FOMC meeting to 82% from 58% a day before, data from the CME FedWatch tool showed. 

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Analyst Notes: In a note to Benzinga, Chris Kline, COO and Co-Founder of BitcoinIRA, said that Bitcoin was likely to witness heightened volatility on the road to $100,000.

“This is not an unexpected phenomenon, as the market often experiences corrections and fluctuations as it navigates uncharted territory,” Kline added.

He also backed Bitcoin’s appeal as a wealth preservation asset, predicting that it would catch up given the higher chance of another interest rate cut next month.

Influential cryptocurrency analyst Ali Martinez spotted a cup-and-handle pattern for Bitcoin, widely considered a bullish signal in technical analysis.

Martinez set a price target of $255,000 for the leading cryptocurrency.