WASHINGTON (dpa-AFX) - Positive sentiment in the cryptocurrency market created by the dovish hints by Fed Chair Jerome Powell turned out to be short-lived as markets turned the focus on U.S.-China trade tariff jitters, security exploits as well as regulatory risks. Outflows from Bitcoin Spot ETF products also weakened sentiment. Overall crypto market capitalization declined more than half percent overnight while Bitcoin touched a 24-hour low of $109,722.
The CMC Fear and Greed Index, a proprietary tool developed by CoinMarketCap to measure the prevailing sentiment in the cryptocurrency market dropped further into the fear territory with a decline to 32 from 37 a day ago. The same was at 58 (neutral) a week ago and 50 (neutral) a month ago.
Markets also watched with dismay the news about stablecoin issuer Paxos mistakenly minting as part of an internal transfer, PYUSD stablecoin worth $300 trillion. The incident, likely a fat-finger entry raises several questions as stablecoins are required to be fully collateralized. The staggering size of the error also raised eyebrows as the amount is nearly twice the size of the global GDP.
Paxos said it immediately identified the error and burned the excess PYUSD. The company attributed the same to an internal technical error and clarified that there was no security breach and that customer funds were safe.
The price moves in the cryptocurrency market came in the backdrop of positive sentiment in Wall Street, weakness in the dollar and an unabated surge in the price of Gold which has scaled a fresh all-time high.
The 6-currency Dollar Index which measures the dollar's strength against a basket of 6 currencies is currently at 98.58, versus 98.79 at the previous close. The index has slipped 0.21 percent from the previous close.
Gold Futures for December settlement is currently trading at $4,262.84 per troy ounce, implying overnight gains of 1.5 percent. Gold Futures touched an all-time high of $4,269.06 earlier in the day.
Overall crypto market capitalization erased 0.54 percent in the past 24 hours to $3.78 trillion. The 24-hour trading volume however declined 14.8 percent to $198 billion. Ten of the top 100 cryptocurrencies have gained more than a percent whereas 44 have slipped more than a percent in the past 24 hours.
Bitcoin is currently trading at $111,113.86 recording overnight losses of 0.41 percent. BTC had ranged between $112,294.11 and $109,721.89 in the past 24 hours. The cryptocurrency is currently trading about 12 percent below the all-time-high of $126,198.07 recorded on October 7.
Bitcoin-based Spot ETF products in the U.S. witnessed outflows of $104 million on Wednesday versus inflows of $103 million on Tuesday. Grayscale Bitcoin Trust (GBTC) topped with outflows of $83 million.
Ethereum also dropped 1 percent overnight to trade at $4,042.50. Ether's current trading price is 18 percent below its all-time-high. The 24-hour trading range was between $4,105.68 and $3,935.16.
Ethereum-based Spot ETF products recorded net inflows of $170 million on Wednesday versus inflows of $236 million on Tuesday. iShares Ethereum Trust ETF (ETHA) topped with inflows of $164 million.
4th ranked BNB gained 0.85 percent overnight at its current trading price of $1,184.37.
5th ranked XRP declined 1.8 percent overnight to trade at $2.44, around 36 percent below the all-time high.
The price of 6th ranked Solana decreased 2.9 percent overnight to $196.51. TRON ranked 8th overall gained 1.5 percent overnight and is currently changing hands at $0.3221.
9th ranked Dogecoin slipped 0.7 percent overnight and is currently changing hands at $0.1991. With losses of close to 37 percent, DOGE is the highest-ranking cryptocurrency to trade with year-to-date losses.
10th ranked Cardano lost 1.5 percent overnight to trade at $0.6770.
100th ranked DeXe (DEXE) topped overnight gains among the top 100 cryptocurrencies with a gain of 5.3 percent. 98th ranked Trust Wallet Token (TWT) also added more than 2 percent.
30th ranked Zcash (ZEC) topped overnight losses among the top 100 cryptocurrencies with a decline of more than 8.5 percent. 38th ranked Aster (ASTER) followed with overnight losses of 7.7 percent.
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