WASHINGTON (dpa-AFX) - Cryptocurrencies are trading on a weak note amidst a rising dollar and hardening bond yields. The greenback strengthened and yields spiked as market digested the Fed's recent rate cut and forward guidance which was not as dovish as some market players had anticipated. Bank of Japan's monetary policy decisions and the stronger-than-expected labor market data also weighed on sentiment.
The Federal Reserve had on Wednesday cut rates by 25 basis points as widely expected. The Fed also hinted at two more quarter-percentage rate cuts in 2025.
Thursday's report by the U.S. Department of Laor which showed initial jobless claims falling by 33 thousand from the previous week to 231 thousand in the second week of September also impacted Fed rate cut expectations and thereby market sentiment. Markets had expected a far higher level of 240 thousand.
Bank of Japan on Friday held rates steady as widely expected. However, it indicated plans to start selling down its holdings of ETFs and REITs, impacting mark sentiment towards risk assets.
The six-currency Dollar Index which measures the Dollar's strength against a basket of six currencies is currently at 97.52, recording overnight gains of 0.17 percent. The index rallied 0.49 percent on Thursday and 0.25 percent on Wednesday.
Sovereign bond yields hardened across regions and tenors. Ten-year bond yields increased more than half percent inter alia in the U.S., Germany, France, Italy, Japan and Hong Kong. In The U.S. yields on the 5-year and 30-year tenor also spiked close to half a percent.
Reports suggesting that Bitcoin put options (hedge against price declines) are trading at a premium to Bitcoin call options (bets on price increases) also reflected the weak market sentiment.
Amidst a mood of profit-booking, aggregate crypto market capitalization has decreased 0.53 percent in the past 24 hours to $4.08 trillion. 10 of the top 100 cryptocurrencies have gained more than a percent whereas 45 of the top 100 cryptocurrencies have slipped more than a percent in the past 24 hours. Eight of the top 10 non-stablecoin cryptocurrencies are trading in the overnight red zone. TRON ranked 9th overall is the highest-ranking cryptocurrency to trade with gains on an overnight basis.
Bitcoin is currently trading at $116,881.96 recording overnight losses of 0.26 percent. BTC had ranged between $117,911.79 and $116,695.89 in the past 24 hours. The cryptocurrency is currently trading about 6 percent below the all-time-high of $124,457.12 recorded on August 14.
Ethereum also slipped 1.2 percent overnight to trade at $4,537.22. Ether's current trading price is 8 percent below its all-time-high. The 24-hour trading range was between $4,636.98 and $4,521.28.
Bitcoin-based Spot ETF products in the U.S. witnessed inflows of $163 million on Thursday versus outflows of $51 million a day earlier. Ethereum-based Spot ETF products recorded net inflows of $213 million on Thursday versus net outflows of $2 million on Wednesday.
3rd ranked XRP dropped 2.3 percent overnight to trade at $3.03, around 21 percent below the all-time high.
5th ranked BNB edged down 0.06 percent overnight at its current trading price of $996.60.
The price of 6th ranked Solana decreased 1.2 percent overnight to $243.29.
8th ranked Dogecoin also declined 1.9 percent overnight and is currently changing hands at $0.2750.
TRON ranked 9th overall added 0.60 percent overnight and is currently changing hands at $0.3472.
10th ranked Cardano slipped 1.1 percent overnight to trade at $0.9066.
80th ranked Aster (ASTER) topped overnight gains among the top 100 cryptocurrencies with a gain of more than 36 percent. 64th ranked Immutable (IMX) surged 13.6 percent followed by 34th ranked NEAR Protocol (NEAR) that gained 12 percent.
49th ranked MYX Finance (MYX) topped overnight losses among the top 100 cryptocurrencies with a decline of more than 25 percent. 48th ranked Pump.fun (PUMP) also erased more than 10 percent in the past 24 hours.
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