Cryptos Decline As Rate Cut Hopes Fade

Cryptocurrencies declined in the past 24 hours amidst fading rate cut expectations and a rising election frenzy in the U.S.

Expectations that a pro-crypto political establishment would soon be the reality in the world’s largest economy lingered. However, a strong set of economic data released just a while ago that diminished rate cut expectations dampened crypto market sentiment.

Data released by the U.S. Census Bureau showed retail sales in the U.S. increasing 0.4 percent month-over-month in September versus a 0.1 percent gain in August and surpassing market expectations of a 0.3 percent rise. Also, data released by the U.S. Department of Labor showed initial jobless claims dropping by 19 thousand to 241 thousand, well below market expectations of 260 thousand.

In the light of the robust economic data, expectations of a quarter-point Fed rate cut in November as indicated in the CME FedWatch tool dropped to 85.4 percent from 93.7 percent a day earlier.

Overall crypto market capitalization slipped 1.2 percent overnight to $2.3 trillion. The 24-hour trading volume dropped 35 percent to $73 billion.

The price movements in the crypto market came amidst the 6-currency Dollar Index increasing 0.18 percent overnight to 103.78 and Spot Gold jumping 0.39 percent overnight to $2,684.31 per troy ounce. Prices of the yellow metal had recorded a fresh peak earlier in the trade.

Coinmarketcap’s Crypto Fear and Greed Index is at 60 implying markets pricing in a pre-election surge in crypto prices. It was at 58 a day earlier, at 37 a week earlier and at 34 a month earlier.

Bitcoin slipped 1.1 percent overnight to trade at $67,018.85, around 9 percent below the all-time high. BTC has gained 9.7 percent in the past week and is holding on to gains of more than 58 percent in 2024. The original cryptocurrency traded between $68,266.95 and $66,787.21 in the past 24 hours.

Data from Farside Investors on Bitcoin Spot ETF products in the U.S. showed net inflows rising to $459 million on Wednesday from $371 million on Tuesday. iShares Bitcoin Trust (IBIT) dominated the flows with inflows of $393 million.

Ethereum lost 0.73 percent in the past 24 hours to trade at $2,608.41, around 47 percent below the previous peak. Weekly gains are at 9.2 percent whereas gains in 2024 are a little more than 14 percent. Ether traded between $2,646.87 and $2,592.41 in the past 24 hours.

Ethereum-based ETF products also recorded positive flows of $24 million, versus net outflows of $12.7 million a day earlier, as per data from Farside Investors.

Bitcoin’s crypto market dominance has edged up to 57.65 percent from 57.53 percent a day earlier. Ethereum’s share of the overall crypto market has increased to 13.68 percent from 13.58 percent a day earlier.

4th ranked BNB (BNB) decreased 0.96 percent overnight, limiting weekly gains to 4.2 percent at its current trading price of $591.93.

5th ranked Solana (SOL) shed 1.94 percent overnight limiting gains to 9.1 percent in the past week. SOL is currently trading at $152.18.

7th ranked XRP(XRP) rallied 1.8 percent overnight to trade at $0.5543. The spike in prices is attributed to speculation about whether SEC has missed a deadline to file its appeal against Ripple Labs.

8th ranked Dogecoin (DOGE) tumbled 3.2 percent overnight to trade at $0.1216.

9th ranked TRON (TRX) edged up 0.27 percent overnight. TRX is currently trading at $0.16.

10th ranked Toncoin (TON) declined 2.3 percent overnight but has added more than 2 percent in the past week. TON is currently changing hands at $5.17.

98th ranked FTX Token (FTT) topped overnight gains with a surge of close to 13 percent. The native token of the defunct cryptocurrency exchange gained amidst reports that it had un-staked a big amount of Solana (SOL) tokens during the past week.

57th ranked Popcat (POPCAT) followed with overnight gains of 4.6 percent. 84th ranked Mog Coin (MOG) and 42nd ranked Injective (INJ), both gained close to 2.5 percent in the past 24 hours.

28th ranked Kaspa (KAS), 100th ranked Chiliz (CHZ), 85th ranked Starknet (STRK), 74th ranked JasmyCoin (JASMY) and 83rd ranked Beam (BEAM) have all slipped more than 6 percent in the past 24 hours.

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