Crypto traders are closely watching Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) after both clocked a high note in the early trading hours on Wednesday.

What Happened: Bitcoin reached an apex at $110,384.22 as it skimmed through the $110,000 region in the early trading hours. However, the cryptocurrency slid back to the $108,000 zone by late evening.

Ethereum's rally also hit a snag as the second-largest cryptocurrency performed a U-turn after reaching $2,877.63.

Meanwhile, ETH's market share touched 9.8%, marking the highest since the end of February. BTC's share remained stable at 63.3%.

About $293 million was liquidated from the cryptocurrency market in the last 4 hours, with $198 million in bullish long bets being wiped out.

Bitcoin's Open Interest further decreased by 1.62% over the past 24 hours. The majority of Binance traders with open BTC positions remained short, according to the Long/Short ratio.

"Greed" sentiment continued to dominate the market, as indicated by the Crypto Fear & Greed Index.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization now stands at $3.41 trillion, following a decline of 1.46% over the last 24 hours.

In other market news, stocks pulled back on Wednesday. The S&P 500 slipped 0.27% to conclude at 6,022.24. The tech-heavy Nasdaq Composite lost 0.50%, closing at 19,615.88. The Dow Jones Industrial Average remained largely flat, with a decline of 1.1 points to 42,865.77.

Consumer Price Index rose 2.4% in May, cutting through the 2.5% projection made by economists. Softer inflation numbers boosted anticipations for Federal Reserve cutting interest rates later this year. According to CME FedWatch tool, traders saw a 61% chance of a 25 basis point cut during September's FOMC meeting.

In other news, Trump announced a new trade deal with China following two days of negotiations in London.

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Analyst Notes: Cryptocurrency analyst and trader Ali Martinez said Bitcoin needs to stay above $108,300 to keep “bullish momentum,” and losing it could trigger a drop to $107,000.

According to blockchain analytics firm Santiment, retail trader sentiment has turned bullish as Bitcoin edges closer to all-time highs.

"There are more than double the amount of positive BTC comments vs. negative across social media, the highest ratio since Trump was elected over 7 months ago," Santiment stated.