Cryptos Hold Steady As Markets Prepare For U.S. CPI
Cryptocurrencies rose even with an anticipated increase in U.S. consumer price inflation, as the overall market capitalization grew by more than 1 percent in the past 24 hours. This growth occurred despite a stronger U.S. Dollar, declining gold prices, and increasing bond yields, as investors looked forward to a possible reduction in trade tensions between the U.S. and China prior to the meeting between President Donald Trump and Chinese President Xi Jinping. The U.S. Bureau of Labor Statistics is preparing to unveil the inflation data for September, with the annual headline inflation anticipated to rise to 3.1 percent from 2.9 percent in August, while the core component is expected to hold steady at 3.1 percent. Month-on-month inflation is expected to remain at 0.4 percent for headline and 0.3 percent for core.
Concerns regarding labor conditions are anticipated to sway the Federal Reserve towards reducing interest rates, as the reports shows a 98.97 percent likelihood of a 25 basis point rate cut next week, bringing the target rate to 3.75–4 percent. The probability of an additional 25 basis point reduction in December is at 91.8 percent. In the crypto market, capitalization increased by 1.4 percent to $3.74 trillion over the past 24 hours, while trading volume saw a decline of 16 percent to $156 billion. The Fear and Greed Index increased to 32 from 28, with 80 of the top 100 cryptocurrencies experiencing overnight gains of more than 1 percent, a rise from 45 the day before, while losses over 1 percent decreased to 5 from 10.
Bitcoin increased by 1.5 percent overnight to $111,176.22, marking a 6.2 percent gain over the past week, yet it is still 12 percent lower than its peak of $126,198.07 achieved on October 7. Bitcoin Spot ETF products in the U.S. saw $20 million in inflows on Thursday, recovering from $101 million in outflows on Wednesday. Ethereum experienced a 2 percent increase, reaching $3,957.48, while remaining 20 percent below its peak value. This comes in the wake of $127 million in outflows from Ethereum Spot ETFs on Thursday, a significant rise from $19 million the day before. Other leading cryptocurrencies also saw gains, including BNB (+2.5% to $1,127), XRP (+1.7% to $2.45), and Solana (+1.9% to $191.95), while Dogecoin recorded a slight increase of 0.9 percent at $0.1969.
Among other leading cryptocurrencies, Cardano increased by 1.2 percent to $0.6482, while TRON fell by 3.7 percent to $0.3102, now ranking ninth overall. Virtuals Protocol led the overnight gains among the top 100 cryptocurrencies with a 13.1 percent surge, and Zcash increased 12.2 percent. Despite some declines, TRON managed to lessen losses among the top 100 cryptocurrencies, showcasing a mixed yet generally favorable market performance. The market continues to be shaped by macroeconomic indicators, expectations regarding Fed rates, and investor sentiment in light of current global events.
