Crypto Rises as Fed Hikes Bets and Bond Yields Ease
Yesterday morning’s mixed performance by major cryptocurrencies raised the crypto market capitalisation above the flatline. Digital asset confidence improved due to bond yields falling, the currency falling, a lower possibility of a Fed rate hike in October, and regulatory positives. However, worry about FOMC minutes on Wednesday and outflows from U.S.-listed crypto spot ETFs impacted on market mood. Across maturities and regions, sovereign bond yields fell. Ten-year U.S. treasuries yield 5.268 percent, down 0.85 percent from the close. Long-term 30-year U.S. treasury yields fell 0.64 percent. In Germany, France, the U.K., Spain, Italy, and Australia, 10-year bond yields have fallen. The six-currency Dollar Index, which compares the U.S. dollar to a basket of six currencies, is at 102.02, down 0.14 percent from 102.17.
The Federal Reserve’s October quarter percentage rate hike expectation dropped to 21.6 percent from 22.1 percent the day before and 50.9 percent a week earlier. The recent U.S. regulation boosted crypto market sentiment. On Monday, the CFTC invited public input on proposed crypto asset transaction and market regulation rules. The agency’s Advanced Notice of Proposed Rulemaking seeks to integrate crypto asset transactions into its uniform national market regulatory framework to improve market transparency, predictability, and consumer protection. The notice asks how the CFTC might restrict abusive crypto asset market and retail commodity transactions within a uniform national framework. The 60-day public comment window seeks market players’ views on providing crypto asset-specific regulatory compliance best practices. The public can also suggest how the Commission can rule on a crypto asset market, a subclass of designated contract market registration tailored for retail commodities transactions including crypto assets.
Institutional investment backing boosted cryptocurrency markets, indicating sector confidence. Strategy Inc. of Virginia announced Monday that it bought 334 Bitcoins valued $28.7 million from October 1 to 4. The notable Bitcoin treasury led by Michael Saylor now holds 848,000 Bitcoins at an average cost of $75,440.70. Global cryptocurrency market capitalisation rose 0.06 percent overnight to $2.93 trillion. Trading volumes rose 13% with market capitalisation. About 25 of the top 100 cryptocurrencies have overnight increases over one percent, while 35 have overnight losses. Filecoin, ranked 68th, adds 10.3% overnight, while Artificial Superintelligence Alliance, ranked 86th, loses 6.3%. Bitcoin, the largest cryptocurrency, is up 0.14 percent overnight at $86,017.92, 32% behind its all-time high of $126,198. The leading cryptocurrency rose 2.7% last week. Year-to-date losses dropped to 1.7%. 24-hour trading ranged from $86,678.81 to $84,971.87.
U.S. Bitcoin Spot ETF products saw net withdrawals of $90 million on Monday, compared to $190 million on Friday. ARK 21Shares Bitcoin ETF had the largest net withdrawals, $85 million, while iShares Bitcoin Trust ETF had the largest net inflows, $70 million. According to data, Bitcoin ranks 12th in worldwide asset capitalisation. The top cryptocurrency is between Broadcom, 11th, and Saudi Aramco, 13th. Ethereum is down 0.17 percent at $2,715.47, 45 percent off its all-time high of $4,953. The leading alternate coin has gained 0.48 percent weekly but lost 8.5 percent year-to-date. 24-hour trading ranged from $2,728.91 to $2,679.36. Net outflows for U.S. Ethereum Spot ETFs fell to $19 million on Monday from $37 million on Friday and $55 million on Thursday. The Fidelity Ethereum Fund alone caused the net outflows. Ethereum ranks 57th in global asset market capitalisation.
4th-ranked BNB fell 0.43 percent overnight to $783.74. 5th-ranked XRP, a payments-focused cryptocurrency, fell 0.16 percent overnight to $1.50. The 7th-ranked Solana dropped 0.34 percent overnight to $120.32, 59 percent below its all-time high of $294.33. Net outflows of $9 million hit U.S.-listed Solana Spot ETF products on Monday, compared to $1 million on Friday. Bitwise Solana Staking ETF lost $7 million. TRON, 8th overall, is up 0.16 percent at $0.3364. 9th-ranked Hyperliquid rose 0.10 percent overnight to $93.23, 5 percent behind its all-time high of $97.98. U.S.-listed Hyperliquid Spot ETF products had $3 million net outflows on Monday and $3 million inflows on Friday. Zcash, ranked 10th, rallied 2.37 percent overnight to $1,360.67, 77 percent below its all-time high of $5,941.80. Net outflows for U.S.-listed Zcash Spot ETF products declined to $4 million on Monday from $27 million on Friday.
