ETF Hopes Limit Crypto Losses While Global Markets See Turbulence
Cryptos traded in a declining mode but hovered close to the $1.08 trillion level in market capitalization even as financial markets worried about war, health of the corporate sector, rising bond yields and the Fed’s likely interest rate trajectory. Expectations that the SEC would soon approve a Bitcoin Spot ETF limited losses in the crypto space.
Escalating conflict in the Middle East and the clamor for regulatory action against use of cryptocurrencies for terror-financing also impacted crypto market sentiment.
Ten-year bond yields in the U.S. rose to 4.987 percent, within striking distance of the psychological 5-percent level, amidst apprehensions that Fed would keep interest rates higher than expected for a longer period than feared. An increase in interest rates bodes ill for cryptocurrencies as it increases the opportunity cost of holding non-interest-bearing cryptocurrencies. The rise in bond yields comes amidst anxiety ahead of the Fed Chair Jerome Powell’s speech on Thursday afternoon and recent hawkish rhetoric from Fed officials.
The CME FedWatch tool shows target probabilities for a quarter-point rate hike in the December Fed Review rising to 40.7 percent, from 36.9 percent a day earlier and 32.1 percent a week earlier. However, expectations of interest rate traders indicate only an 8.1-percent likelihood for a quarter-point rate hike in the Fed’s review scheduled for November. It was 6.6 percent a day earlier and 13.3 percent a week earlier.
Bitcoin (BTC) traded firmly above the $28k level, gaining more than half a percent overnight and 6.2 percent in the past week. BTC is currently changing hands at $28,475.30, having touched a high of $28,566.75 and a low of $28,174.25 earlier in the trade.
Ethereum (ETH) slipped 1.6 percent overnight but is holding on to minor gains in the past week. Ether also traded firmly above the $1.5k level in the past 24 hours. It is currently being traded at $1,552.99.
4th ranked BNB (BNB) slipped close to 1 percent whereas 5th ranked XRP (XRP) and 8th ranked Cardano (ADA) slipped 1.6 percent in the past 24 hours.
7th ranked Solana (SOL) added close to 1 percent.
9th ranked Dogecoin (DOGE) slipped 0.90 percent whereas 10th ranked TRON (TRX) slipped 0.1 percent below the flatline.
44th ranked Bitcoin SV (BSV) topped overnight gains with a surge of 7.5 percent as well as weekly gains with an addition of 28.5 percent.
On the laggards’ side, 76th ranked ApeCoin (APE), 71st ranked Trust Wallet Token (TWT), 82nd ranked Rocket Pool (RPL) and 70th ranked Flow (FLOW) have all slipped more than 4 percent in the past 24 hours.
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