Cryptos Rebound After CPI-led Losses

Cryptocurrencies rebounded after declining in the aftermath of the monthly update for the U.S. that showed a lesser-than-expected progress on the inflation front.

Data released by the U.S. Bureau of Labor Statistics on Thursday showed annual headline inflation in the U.S. edging down to 2.4 percent from 2.5 percent in August missing market expectations of a reading of 2.3 percent. The core component thereof which was seen steady at 3.2 percent unexpectedly edged up to 3.3 percent. Month-on-month inflation which was seen edging down to 0.1 percent from 0.2 percent in the previous month unexpectedly remained steady at 0.2 percent. The core component thereof which was seen edging down to 0.2 percent from 0.3 percent in the previous month unexpectedly remained steady at 0.3 percent.

Meanwhile, weekly data released by the U.S. Department of Labor showed initial jobless claims rising to 258 thousand during the week ended October 5, from 225 thousand a week earlier and far exceeding market expectations of a level of 230 thousand.

The disappointment on the inflation front, sobered by the job market update however caused a repricing in rate cut expectations, lifting the 6-currency Dollar Index to a high of 103.18 on Thursday. It has since retreated to 102.89.

Overall crypto market capitalization which dropped to a low of $2.03 trillion earlier in the trade is currently at $2.14 trillion.

Bitcoin slipped 0.10 percent overnight to trade at $60,981.44, around 17 percent below the all-time high. BTC has dropped 0.53 percent in the past week while holding on to gains of more than 44 percent in 2024. The original cryptocurrency traded between $61,236.72 and $58,895.21 in the past 24 hours.

Data from Farside Investors on Bitcoin Spot ETF products in the U.S. showed net outflows rising to $81.1 million on Thursday from $40.6 million on Wednesday. The third day of continuous negative flows witnessed outflows from iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), Bitwise Bitcoin ETF(BITB) and Ark 21Share Bitcoin ETF(ARKB).

Ethereum gained 0.74 percent in the past 24 hours to trade at $2,412.00, around 51 percent below the previous peak. Weekly gains are at 1.5 percent. Gains in 2024 are a little less than 6 percent. Ether traded between $2,417.29 and $2,329.78 in the past 24 hours.

Data from Farside Investors on Ethereum Spot ETF products in the U.S. showed inflows of $10.1 million on Thursday versus nil flows on Wednesday.

Bitcoin’s crypto market dominance has dropped to 56.48 percent from 56.75 percent a day earlier. Ethereum’s share of the overall crypto market has increased to 13.59 percent from 13.52 percent a day earlier.

4th ranked BNB (BNB) decreased 0.5 percent overnight, limiting weekly gains to 2.7 percent at its current trading price of $566.34.

5th ranked Solana (SOL) rallied 1.96 percent overnight lifting gains to 1.6 percent in the past week. SOL is currently trading at $141.99.

7th ranked XRP(XRP) gained 2.3 percent to trade at $0.5382 amidst Ripple Labs filing a cross-appeal in its dispute with the SEC. The SEC had earlier in the month filed an appeal in respect of the verdict given in August. Meanwhile, Bitnomial Exchange LLC, an entity regulated by the Commodity Futures Trading Commission has filed a suit against the SEC contesting its claim that XRP is a security.

8th ranked Dogecoin (DOGE) added 1.8 percent overnight to trade at $0.1086.

9th ranked TRON (TRX) shed 0.21 percent overnight. TRX is currently trading at $0.1593.

10th ranked Toncoin (TON) rallied 2.5 percent overnight but has lost more than 3percent in the past week. TON is currently changing hands at $5.19.

36th ranked dogwifhat (WIF) topped overnight gains with a surge of 11.6 percent. 88th ranked EigenLayer (EIGEN) and 56th ranked Popcat (POPCAT) followed with overnight gains of more than 9 percent. 52nd ranked Sei (SEI) also rallied 8.6 percent in the past 24 hours.

98th ranked First Neiro on Ethereum (NEIRO) is the greatest laggard, shedding more than 4 percent overnight. NEIRO however tops gains over the past week as well as over the past 30 days.

63rd ranked Helium (HNT) and 47th ranked Fantom (FTM) have both lost more than 2 percent overnight. 93rd ranked FTX Token (FTT) is the only other cryptocurrency among the top 100 to trade with overnight losses of more than a percent.

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