Cryptos Clueless As Markets Wait For FOMC Minutes

Cryptocurrencies traded in a narrow band ahead of the release of the minutes of the recent FOMC. A firmer Dollar Index and absence of further stimulus measures from China also weakened market sentiment. Anxiety ahead of the CPI data from the U.S. on Thursday also weighed on sentiment.

The Fed had in its decision announced on September 18 stunned markets with a rate cut of 50 basis points. The projected Federal funds rate at the end of 2024 was also lowered to 4.4 percent from 5.1 percent projected in June, implying another 50 basis points of rate cut in 2024.

Nevertheless, expectations of another massive rate cut in November which was strong immediately after the FOMC faded after a stronger-than-expected jobs report. The CME FedWatch tool currently shows that markets no longer expect a 50-basis points rate cut in November. An 87-percent probability is assigned to quarter-point cut whereas 13 percent expect a probability of a status quo by the Federal Reserve.

Crypto markets however appear to be relieved that recent claims about unmasking the identity of Satoshi Nakamoto have met with limited acceptance from the crypto world. An HBO documentary on Tuesday had revealed cryptographer Peter Todd as the real Satoshi Nakamoto who is credited with pioneering Bitcoin.

Aggregate market capitalization of cryptocurrencies is currently hovering near $2.17 trillion.

Market capitalization of the memes category has however gained 1.4 percent overnight to $49.1 billion, accounting for a market share of 2.3 percent.

Market capitalization of the AI& Big data category dropped 1.4 percent overnight to $34.8 billion implying a market share of 1.61 percent.

Amidst the weak market sentiment, market capitalization of the not-so-volatile stablecoins increased 0.1 percent to $172.6 billion or 7.96 percent of the overall crypto market.

Among the top 100 cryptocurrencies, only 12 are trading with overnight gains of more than a percent and only 33 are trading with weekly gains of more than a percent.
Bitcoin is currently trading at $62,078.28, around 16 percent below the all-time high recorded in March 2024. Bitcoin has slipped 0.65 percent overnight but is holding on to gains of 1.2 percent in the past 7 days. Year-to-date gains have fallen to 46.8 percent.

Data from Farside Investors on Bitcoin Spot ETF products in the U.S. that showed a net outflow of $18.6 million on Tuesday versus the net inflow of $235 million a day earlier also swayed market sentiment.

Ethereum is currently changing hands at $2,429.22, around 50 percent below the all-time high. Ether has edged down 0.08 percent overnight and 1.2 percent in the past 7 days. Year-to-date gains have fallen to close to 6.5 percent.

Data from Farside Investors on Ethereum Spot ETF products in the U.S. showed net outflows of more than $8 million versus nil flows on Monday.

Bitcoin’s crypto market dominance has declined to 56.7 percent from 57 percent a day earlier. In contrast, Ethereum’s share of the overall crypto market has edged up to 13.51 percent from 13.5 percent a day earlier.

4th ranked BNB (BNB) added 2.1 percent overnight and 6.3 percent on a weekly basis to trade at $583.85.

5th ranked Solana (SOL) slipped 0.3 percent overnight and close to 2 percent over the past 7 days. SOL is currently trading at $143.17.

7th ranked XRP (XRP) edged up 0.3 percent overnight but is saddled with weekly losses of more than 10 percent to trade at $0.5318. Year-to-date losses are a little more than 13.5 percent.

Dogecoin (DOGE), ranked 8th overall has gained 1.5 percent in the past 24 hours and 2 percent in the past week to trade at $0.1088.

9th ranked TRON (TRX) rallied 2.6 percent overnight and 4 percent in the past week. TRX is currently trading at $0.1601.

10th ranked Toncoin (TON) declined 0.13 percent overnight and 4.4 percent over the past 7 days to trade at $5.20.

84th ranked Eigenlayer (EIGEN) topped overnight gains with a surge of more than 6 percent. 31st ranked Monero (XMR) also gained 4.3 percent overnight.

20th ranked Sui (SUI) topped overnight losses among the top 100 cryptocurrencies with a decline of 7.2 percent. 68th ranked Worldcoin (WLD) and 54th ranked Sei (SEI) also declined more than 5 percent in the past 24 hours.

90th ranked First Neiro On Ethereum (NEIRO), a Shiba Inu dog-themed meme coin topped weekly gains with a surge of 74.8 percent.

82nd ranked Ethena (ENA) topped weekly losses with an erosion of 23.1 percent.

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