WASHINGTON (dpa-AFX) - Sentiment in cryptocurrency markets changed course on Wednesday, tilting partially into the green zone ahead of the much-awaited speech by Fed Chair Jerome Powell on Friday morning at the Jackson Hole Symposium. The growing divergence in the monetary policy approach of the Fed members as well as the persisting outflows from crypto spot ETF products in the U.S. limited gains. Bitcoin is trading in the red while top-ranked altcoins are trading firmly above the flatline.
Fed Chair Jerome Powell is expected to reveal his mind on the forward trajectory of interest rates taking into cognizance the weak labor market data as well as the potential price pressures created by the raised tariffs. Amidst intense political pressure on the Federal Reserve to slash rates, key economic data updates including S&P's sector wise PMI readings for August, existing home sales data for July as well as initial jobless claims for the week ended August 16 are scheduled for release before Chair Powell's speech at Jackson Hole on Friday morning.
Minutes of the Federal Open Market Committee released on Wednesday revealed a divided Fed worried about tariffs, inflation as well as the condition of the labor market. Members agreed that recent indicators suggested a moderation in the growth of economic activity in the first half of the year. They also agreed that the unemployment rate had remained at a low level and that labor market conditions had remained solid. Members concurred that inflation remained somewhat elevated. Members agreed that uncertainty about the economic outlook remained elevated and that the Committee was attentive to the risks to both sides of its dual mandate.
Amidst the uncertainty surrounding the Fed's monetary policy action, cryptocurrencies are trading on a mixed note. While market capitalization increased 0.17 percent overnight to $3.84 trillion, the 24-hour trading volume decreased 6.5 percent overnight to $174 billion. Among the top 100 cryptocurrencies, 37 are trading with overnight gains of more than a percent whereas 10 are trading with overnight losses of more than a percent.
The CMC Crypto Fear and Greed Index, a proprietary tool developed by CoinMarketCap to measure the emotional state of the market firmed up further in the neutral territory with a rise to 50. The reading was at 45 a day earlier.
Bitcoin declined 0.23 percent overnight to trade at $113,403.74. It is currently trading 9 percent below the all-time-high of $124,457.12 recorded on August 14. The original cryptocurrency traded between $114,802.65 and $112,387.96 during the past 24 hours.
The leading cryptocurrency is trading with losses of 6.8 percent over the 7-day horizon and 4.3 percent over the 30-day horizon. Year-to-date gains have fallen to a little more than 21 percent.
Net outflows from Bitcoin-based Spot ETF products in the U.S. stood at $316 million on Wednesday versus $523 million on Tuesday. iShares Bitcoin Trust (IBIT) topped with outflows of $220 million.
Ethereum rallied 1.4 percent overnight to trade at $4,279.16. Ether has lost 10 percent in the past week. Gains in 2025 now stand at a little more than 28 percent. Ether's current trading price is 13 percent below its all-time-high. The 24-hour trading range was between $4,376.79 and $4,109.63.
Ethereum-based Spot ETF products also witnessed net outflows of $240 million on Wednesday versus $430 million on Tuesday. iShares Ethereum Trust ETF (ETHA) topped with outflows of $258 million.
While Bitcoin continues to be ranked 7th, Ethereum has rallied to the 23rd position in the global ranking of all assets as per market capitalization compiled by companiesmarketcap.com.
Amidst the strength of altcoins, Bitcoin's crypto market dominance has fallen to 58.7 percent while Ethereum's share has increased to 13.4 percent of the overall crypto market. The residual altcoins account for a 27.9-percent share of the overall crypto market.
3rd ranked XRP added 0.30 percent overnight to trade at $2.89, around 25 percent below the all-time high. 5th ranked BNB gained 2.7 percent overnight at its current trading price of $852.33. The price of 6th ranked Solana increased 2.1 percent overnight to $185.00. SOL is saddled with year-to-date losses of 2.2 percent. 8th ranked TRON rallied around a percent overnight and is currently changing hands at $0.3536. Dogecoin, ranked 9th overall added 2 percent overnight and is currently changing hands at $0.2185. 10th ranked Cardano surged 2.7 percent overnight to trade at $0.8749.
33rd ranked OKB(OKB) topped overnight gains among the top 100 cryptocurrencies with a gain of 43.7 percent. 96th ranked Morpho (MORPHO) followed with gains of 11.3 percent. 31st ranked Mantle (MNT) topped overnight losses among the top 100 cryptocurrencies with a decline of more than 6 percent. 74th ranked Lido DAO (LDO) followed with overnight losses of 5.3 percent.
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