WASHINGTON (dpa-AFX) - Market capitalization of cryptocurrencies declined more than 2 percent in the past 24 hours ahead of key monetary policy triggers lined up for the week. In addition to the FOMC decision due on Wednesday afternoon, crypto markets are awaiting the U.S. CPI data release on Wednesday morning, the U.S. producer price inflation update on Thursday morning and the Bank of Japan's interest rate decision that would be known late on Thursday. Unexpected outflows on Monday from Bitcoin Spot ETF products in the U.S. also weighed on crypto market sentiment.
Stronger-than-expected U.S. jobs data released on Friday dampened rate cut expectations. The CME FedWatch tool that tracks the expectations of interest rate traders currently shows a probability of 51 percent for a rate cut in September versus 67 percent a week earlier. Rate cut expectations for the FOMC in November also has slipped to 66 percent from 78 percent a week earlier. For the December review, rate cut expectations are strong at 88 percent, albeit a bit lower than the 93 percent recorded a week earlier.
Signs of a robust labor market in the U.S. that is feared to add to inflationary pressures has caused markets to scale back on rate cut expectations. Amidst this, crypto market capitalization has declined around 2.9 percent in the past 24 hours, dropping to $2.46 trillion from $2.53 trillion a day earlier. Most of the top-ranked cryptocurrencies have slipped more than 2 percent on an overnight basis. Only 5 of the top 100 cryptocurrencies are trading with overnight gains in excess of a percent.
Amidst the weak crypto market sentiment, Bitcoin's market dominance has increased to 54.2 percent from 54.1 percent a day earlier. Ethereum now commands 17.3 percent of the overall crypto market versus 17.5 percent a day earlier. Rising risk aversion helped stablecoins rise to 6.6 percent of the overall market from 6.4 percent a day earlier. The net result has been residual altcoins slipping to 21.9 percent of the overall crypto market versus 22 percent a day earlier.
Outflows from Bitcoin Spot ETF products in the U.S. on Monday that ended a 19-day inflow streak also fueled bearish sentiment for digital assets, particularly Bitcoin. Data from Farside Investors showed net outflows of $65 million from Bitcoin Spot ETF products in the U.S. on Monday versus net inflow of $131 million on Friday. Grayscale Bitcoin Trust (GBTC) recorded outflows of $39.5 million followed by Invesco Galaxy Bitcoin ETF (BTCO) that recorded outflows of $20.5 million and Valkyrie Bitcoin Fund (BRRR) with outflows of $15.8 million.
Bitcoin, the original cryptocurrency has shed 2.7 percent overnight and 2 percent in the past week as it trades at $67,544.47, around 8 percent below its all-time high. BTC oscillated between $70,146.84 and $67,265.97 in the past 24 hours.
Ether's overnight losses of 3.7 percent and weekly losses of 6.1 percent are more pronounced than that of Bitcoin. Ether, which is currently trading at $3,535.06, almost 28 percent below its all-time high, ranged between $3,711.43 and $3,503.93 in the past 24 hours.
13th ranked TRON (TRX) is the highest-ranking cryptocurrency to trade with overnight gains. TRX has gained 0.8 percent in the past 24 hours.
38th ranked Injective (INJ) topped overnight gains among the top 100 cryptocurrencies with a surge of more than 9 percent. 59th ranked Notcoin (NOT) topped overnight losses among the top 100 cryptocurrencies with a decline of more than 12 percent.
4th ranked BNB (BNB) slipped 5.2 percent in the past 24 hours to trade at $612.69. The native token of the Binance.com cryptocurrency exchange is trading with weekly losses of 2.6 percent and year-to-date gains of 96 percent.
5th ranked Solana (SOL) slipped 3.4 percent in the past 24 hours and 6.7 percent in the past week to trade at $154.11.
7th ranked XRP (XRP) declined more than 2 percent overnight, lifting down the losses to 6.8 percent on a weekly basis and to 21 percent in 2024. XRP (XRP) is the highest-ranking cryptocurrency to trade with losses on a year-to-date basis.
Dogecoin (DOGE), ranked 8th overall has shed 2.6 percent in the past 24 hours to trade at $0.141.
9th ranked Toncoin (TON) slipped 3 percent overnight to trade at $6.89. 10th ranked Cardano (ADA) declined 1.7 percent overnight and 5 percent over the past week.
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