Crypto Markets Dip as US Jobs Data Sparks Risk-Off Mood
Anxiety surrounding crucial labor market updates from the U.S. has influenced global market sentiment, resulting in a drop in cryptocurrency market capitalization by about 3.5 percent overnight. In the overnight trading session, Wall Street Futures, the U.S. Dollar, and Gold Futures are all facing a decline. Global markets are experiencing heightened caution, characterized by dwindling liquidity as the year-end draws near. This has resulted in a dampened market sentiment and a suppressed risk appetite. The U.S. Bureau of Labor Statistics is poised to release the non-farm payroll additions for October and November on Tuesday morning, while the unemployment rate will be revealed at the end of November. The data is expected to impact the Fed’s monetary policy strategy, given the Fed’s dual mandate to achieve maximum employment and maintain price stability. The unemployment rate is expected to remain at 4.4 percent in November, consistent with September’s figures and a slight increase from August. Notably, October’s report will not include the unemployment rate due to the disruptions stemming from the government shutdown.
Markets are bracing for a projected rise of 40 thousand non-farm payrolls for November, alongside a revision indicating an increase of 51 thousand in October, in contrast to the 119 thousand recorded in September. In the face of widespread selling pressure, the total crypto market capitalization experienced a decline of 3.5 percent overnight, settling at $2.96 trillion. In the latest market analysis, 80 out of the top 100 cryptocurrencies experienced losses surpassing one percent, whereas merely four managed to achieve gains beyond that threshold. Reports shows that in the last 24 hours, there were $667 million in crypto liquidations, with $585 million coming from long positions and $82 million from short positions, indicating the forced closures of leveraged trades. The CMC Fear and Greed Index, a key indicator of market sentiment, showed signs of heightened anxiety as it dropped to 22 from 24 just a day prior and 25 a week earlier.
Bitcoin experienced a drop of 3.1 percent in the last 24 hours, now priced at $87,038.91. This positions it approximately 31 percent below its peak of $126,198.07, which was achieved on October 7. The top cryptocurrency has experienced a decline of 3.6 percent in the last week and is currently down 6.8 percent year-to-date. On Monday, U.S. Bitcoin Spot ETFs experienced net outflows totaling $358 million, marking a reversal from the $49 million in inflows noted on Friday. Notably, the Fidelity Wise Origin Bitcoin Fund accounted for $230 million of these outflows. Ethereum experienced a significant decline of 6.5 percent overnight, now trading at $2,953.18. This marks a staggering nearly 40 percent drop from its all-time high of $4,953.73, with year-to-date losses now reaching 11.4 percent. On Monday, Ethereum Spot ETFs experienced net outflows totaling $225 million, with the iShares Ethereum Trust ETF leading the way at $139 million.
In the last 24 hours, Bitcoin fluctuated between $89,982.65 and $85,304.08, whereas Ethereum saw a range from $3,175.12 to $2,890.01. In the latest global asset rankings by market capitalization, Bitcoin holds the 8th position while Ethereum sits at 41st. BNB, holding the 4th position, experienced a decline of 2.9 percent, settling at $864.12. Meanwhile, XRP, ranked 5th, saw a drop of 3.9 percent, now priced at $1.91. Solana experienced a decline of 3 percent, now sitting at $128.65. TRON saw a slight dip of 0.8 percent, currently at $0.2793. Dogecoin fell by 4.1 percent, trading at $0.1314, while Cardano dropped 4.4 percent to $0.3871. In the latest market shifts, 95th-ranked pippin experienced a remarkable surge of over 30 percent, taking the lead in gains. Conversely, Merlin Chain, positioned at 99th, made headlines on the downside with a significant 16 percent decline.
