WASHINGTON (dpa-AFX) - Cryptocurrencies have slumped in the response to the revelations regarding the deliberations at the previous FOMC wherein the Federal Reserve had surprised with a 50-basis points rate cut. The decision to slash rates by 50 basis points was not unanimous and one member had dissented.
Governor Michelle. W. Bowman preferred to lower the federal funds rate by 25 basis points only, in the light of core inflation remaining well above the Committee's objective, a labor market that was near full employment, and solid underlying growth. She felt that the Committee's larger policy action could be seen as a premature declaration of victory on the price-stability part of the dual mandate.
Almost all participants saw upside risks to the inflation outlook as having diminished, while downside risks to employment were seen as having increased. As a result, the broad assessment was that the risks to achieving the Committee's dual-mandate goals was roughly in balance.
Participants agreed that labor market conditions were almost close to the Committee's longer-run goal of maximum employment. Some participants did not perceive an increased risk of a significant further weakening in labor market conditions.
The minutes also revealed that the participants emphasized that inflation remained somewhat elevated and that they were strongly committed to returning inflation to the Committee's 2 percent objective.
With the Fed's thinking unveiled, market's focus has now shifted to the consumer price inflation readings and the job market data due on Thursday morning. Headline annual inflation in September is seen falling to 2.3 percent from 2.5 percent in the previous month. The core component thereof is seen steady at 3.2 percent. Headline inflation on a month-on-month basis is seen falling to 0.1 percent in September from 0.2 percent previously. The core component thereof is also seen edging down to 0.2 percent from 0.3 percent previously. Initial jobless claims during the week ended October 5 is seen rising to 230 thousand from 225 thousand in the previous week.
With the Fed's easing plans back in focus, expectations of a status quo on rates have edged up to 19.9 percent from 19.7 percent a day earlier. The CME FedWatch tool now shows a probability of 80.1 percent for a quarter-point rate cut versus 80.3 percent a day earlier.
Amidst waning expectations of another big monetary easing, crypto market capitalization has dropped to $2.12 trillion from $2.17 trillion a day earlier.
Bitcoin slipped 1.7 percent overnight to trade at $61,041.12, around 17 percent below the all-time high. BTC has gained half percent in the past week while holding on to gains of more than 44 percent in 2024. The original cryptocurrency traded between $62,357.91 and $60,314.22 in the past 24 hours.
Data from Farside Investors on Bitcoin Spot ETF products in the U.S. showed net outflows rising to $30.6 million on Wednesday from $18.6 million on Tuesday.
Ethereum plunged 1.5 percent in the past 24 hours to trade at $2,393.68, around 51 percent below the previous peak. Weekly gains are at 1.8 percent. Gains in 2024 are a little less than 5 percent. Ether traded between $2,469.21 and $2,350.95 in the past 24 hours.
Data from Farside Investors on Ethereum Spot ETF products in the U.S. showed nil flows on Wednesday versus net outflows of more than $8 million on Tuesday.
Bitcoin's crypto market dominance is steady at 56.7 percent. Ethereum's share of the overall crypto market is also steady at 13.5 percent.
4th ranked BNB (BNB) decreased 2.6 percent overnight, limiting weekly gains to 5.1 percent at its current trading price of $568.89.
5th ranked Solana (SOL) also dropped 2.5 percent overnight restricting gains to 1.4 percent in the past week. SOL is currently trading at $139.15.
7th ranked XRP(XRP) plunged 1.3 percent to trade at $0.5247.
8th ranked Dogecoin (DOGE) slipped 2.8 percent overnight to trade at $0.1061.
9th ranked TRON (TRX) shed 0.63 percent overnight. TRX is currently trading at $0.1592.
10th ranked Toncoin (TON) tumbled 3.2 percent overnight and 3.4 percent in the past week. TON is currently changing hands at $5.04.
22nd ranked Uniswap (UNI) topped with overnight gains of 7.4 percent. 96th ranked Chilliz (CHZ) followed with gains of 4.7 percent. 17th ranked UNUS SED LEO (LEO) that gained 1.7 percent is the only other cryptocurrency among the top 100 to trade with overnight gains of more than a percent.
97th ranked EigenLayer (EIGEN) is the greatest laggard, shedding more than 11 percent overnight. 24th ranked Aptos (APT) slipped 10.2 percent followed by 38th ranked dogwifhat (WIF) that has declined 9.8 percent in the past 24 hours.
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