WASHINGTON (dpa-AFX) - Cryptocurrencies slipped more than 2 percent in the past 24 hours amidst comments by Fed Chair Jerome Powell that stressed on more proof of disinflation before cutting rates. Upbeat U.S. labor market data and fresh outflows from Bitcoin Spot ETF products in the U.S. exacerbated the negative sentiment. Ahead of the release of ISM Services PMI, minutes of FOMC and non-farm payrolls data scheduled for the week, crypto market sentiment remained heavily bearish.
Fed Chair Jerome Powell in his remarks at the European Central Bank's Forum on Central Banking acknowledged disinflationary trends in the American economy but insisted on conclusive evidence before embarking on rate cuts from the 23-year high levels.
Meanwhile, data released by the U.S. Bureau of Labor Statistics on Tuesday showed the number of job openings rising to 8.14 million in May from a three-year low of 7.92 million in April. The data surprised markets which had anticipated a reading of 7.91 million. The monthly ADP Employment Change report and the weekly initial jobless claims data are due on Wednesday morning. While the unemployment rate is seen steady at 4 percent, the crucial monthly data due on Friday is expected to show a vastly lower addition to non-farm payrolls. Amidst the expected data deluge, market speculation is on whether price pressures emanating from the labor market would keep the Fed's hands away from an early rate cut.
Amidst the developments, expectations of a Fed rate cut in September which were at 68.8 percent a day earlier has fallen to 65.3 percent. Likewise, expectations of a rate cut in November has fallen to 77.2 percent and in December to 93.3 percent.
Interest rate expectations have a profound influence on crypto market sentiment, given the opportunity cost of holding these non-interest-bearing assets. With the Fed comments and latest data, market concerns about high interest rates have hurt crypto market sentiment, dragging overall crypto market capitalization to $2.25 trillion from $2.31 trillion a day earlier. Anxiety ahead of the release of the FOMC minutes on Wednesday also weighed heavily on sentiment.
Bitcoin (BTC) slipped 3.3 percent in the past 24 hours to trade at $60,504.13, around 18 percent below the all-time-high. The 24-hour trading range was between $63,015.03 and $60,320.78. Though Bitcoin is saddled with weekly losses of 1.4 percent, it has made year-to-date gains of 43 percent. Bitcoin currently dominates 53.1 percent of the overall crypto market.
Latest data from Farside Investors showed net outflows of $14 million from Bitcoin Spot ETF products in the U.S. on Tuesday versus net inflows of $130 million on Monday and net inflows of $73 million on Friday.
Ethereum (ETH) dropped 3.1 percent in the past 24 hours to trade at $3,336.04. The 24-hour trading range was between $3,454.86 and $3,331.64. Ether has shed 1.3 percent in the past week but is holding on to year-to-date gains of 46 percent. Ether currently dominates 17.9 percent of the overall crypto market.
4th ranked BNB (BNB) dropped 2.3 percent overnight to trade at $565.42.
5th ranked Solana (SOL) declined 1.3 percent in the past 24 hours to trade at $146.23.
7th ranked XRP (XRP) edged up 0.5 percent overnight to trade at $0.4835 and is the highest-ranking crypto to trade with overnight gains. With a loss of more than 21 percent in 2024, XRP is also the highest-ranking crypto to trade in the red zone on a year-to-date basis.
8th ranked Toncoin (TON) lost 1.5 percent overnight to trade at $7.88. TON has gained 241 percent in 2024.
9th ranked Dogecoin (DOGE) shed 1.5 percent overnight to trade at $0.1215.
10th ranked Cardano (ADA) gained 1 percent overnight to trade at $0.4133, restricting year-to-date losses to 30 percent.
90th ranked Conflux (CFX) and 96th ranked zkSync (ZK) topped overnight gains with an addition of 2.4 percent.
51st ranked Bittensor (TAO) and 74th ranked Ethereum Name Service (ENS) topped overnight losses with a decline of more than 13 percent. 54th ranked Lido DAO (LDO) followed with losses of 12 percent and 44th ranked dogwifhat (WIF) with losses of 10 percent.
For More Cryptocurrency News, visit rttnews.com
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
