Cryptos Tumble Again

Cryptocurrency market capitalization slipped more than 2 percent in the past 24 hours as markets reacted to the massive plunge in the Nikkei driven by fears of a potentially hawkish monetary policy path by the Bank of Japan. Fed Chair Jerome Powell’s speech on Monday as well as key economic data due from the U.S. including PMI, JOLTs job openings as well as non-farm payrolls contributed to the market’s anxiety.

The yen’s surge and the Nikkei’s plunge amidst speculation that the new political leadership in Japan would be supportive of a hawkish monetary policy triggered a sell-off in the crypto market.

Concerns about whether the upcoming data from the U.S. would limit the Fed’s monetary easing plans also weighed on sentiment. In the crucial jobs data due on Friday, markets expect the unemployment rate to be steady at 4.2 percent whereas the addition to non-farm payrolls is expected to edge down to 140 thousand from 142 thousand in August. Going by the Summary of Economic projections released at the time of the Federal Open Markets committee, the Fed plans to cut another 50 basis points in 2024, 100 basis points in 2025 and 50 basis points in 2026.

Amidst the developments, crypto market capitalization has slipped to $2.25 trillion. It was $2.3 trillion a day earlier and $2.22 trillion a week earlier.

Bitcoin traded between $66,069.35 and $63,273.38 in the past 24 hours. It is currently trading at $63,796.48 implying overnight losses of 2.9 percent, weekly gains of 0.6 percent and year-to-date rally of 50.9 percent. At its current price, the leading cryptocurrency is trading 13 percent below the all-time high recorded in March 2024.

Data from Farside Investors on Bitcoin Spot ETF products in the U.S. showed a net inflow of $494 million on Friday versus $366 million on Thursday.

Ethereum slipped 1.5 percent in the past 24 hours to trade at $2,611.74, around 47 percent below the all-time high. Amidst weekly losses of 1.9 percent, the leading altcoin’s year-to-date gains are now above 14 percent.

Data from Farside Investors on Ethereum Spot ETF products in the U.S. showed a net inflow of $58.7 million on Friday versus net outflow of $0.1 million a day earlier.

4th ranked BNB (BNB) plunged 3.6 percent overnight and 3.3 percent in the past week to trade at $575.77.

5th ranked Solana (SOL) edged down 0.14 percent overnight, limiting weekly gains to 9 percent. SOL is currently trading at $156.75.

7th ranked XRP (XRP) shed 2.5 percent overnight but has gained 6.2 percent in the past week to trade at $0.6241. The cryptocurrency issued by Ripple Labs is holding on to year-to-date gains of 1.5 percent.

Dogecoin (DOGE), ranked 8th overall has also lost 4.9 percent in the past 24 hours to trade at $0.1193.

9th ranked Toncoin (TON) edged up 0.15 percent overnight and 2.5 percent in the past week to trade at $5.82.

10th ranked TRON (TRX) has edged down 0.28 percent overnight limiting weekly gains to 2.3 percent. TRX is currently trading at $0.1561.

52nd ranked Bonk (BONK) topped overnight gains with a surge of 9.9 percent. 92nd ranked Ethena (ENA) rallied 9.1 percent followed by 38th ranked dogwifhat (WIF) that added 8.3 percent overnight.

13th ranked Shiba Inu (SHIB) topped overnight losses with a decline of 6 percent. 90th ranked Nervos Network (CKB) followed with losses of close to 5 percent.

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