WASHINGTON (dpa-AFX) - Sentiment across cryptocurrency markets improved marginally in the past 24 hours amidst bullish derivative activity and a rebound in global financial markets. Gold, Wall Street futures and the U.S. dollar have rallied while bond yields have more or less eased. Despite the rebound, cryptocurrencies have underperformed the traditional financial markets.
Bitcoin and Ethereum are still trading with year-to-date losses. Among the top 10 non-stablecoin cryptocurrencies, 5 are trading with year-to-date gains and 5 are trading with year-to-date losses.
On the horizon for financial markets are the release of the FOMC minutes on Wednesday afternoon and the earnings update from chip giant NVIDIA after the bell.
The Federal Open Markets Committee had in a widely expected move lowered the target range for the federal funds rate by quarter percentage point to 3.75 to 4 percent in its previous meeting on October 29. The Committee reiterated its strong commitment to support maximum employment and returning inflation to its 2 percent objective. The Committee also decided to conclude the reduction of its aggregate securities holdings on December 1.
However, a cautious tone by the Fed Chair in the press briefing that followed the rate cut announcement spooked market sentiment. Before the Fed policy announcement, markets had strongly expected another rate cut in the next review in December. But the Fed Chair's comments ruled out any such guarantee, dampening market sentiment.
Though indications from Fed officials of late have revealed a lower likelihood of a Fed rate cut in December, markets are keenly awaiting the minutes of the recent FOMC meeting. The anticipation ahead of the release of the FOMC minutes is also attributed to the mixed voting pattern for the monetary policy action. While 10 of the 12 members had voted in favour of a quarter percentage cut, two members had dissented. Of those who voted against the decision, one had preferred to lower the rate by half percentage point, and another had preferred no change.
Nevertheless, market expectation remains tilted towards a 'hold' by the Federal Reserve on December 10. The CME FedWatch tool shows expectations of a status quo by the Fed at 53.4 percent versus 57.6 percent a day ago and 37.1 percent a week ago.
The Dollar Index which measures the dollar's strength against a basket of 6 currencies is currently at 99.64 versus 99.55 at the previous close. Gold Futures for December settlement is currently trading at $4,090.79 per troy ounce, implying overnight gains of 0.60 percent. Ten-year sovereign bond yields have spiked in the U.S. but eased in the U.K., France, Germany, etc. Wall Street Futures are trading slightly above the flatline.
Overall cryptocurrency market capitalization has gained 0.20 percent in the past 24 hours to $3.12 trillion. Only 18 of the top 100 cryptocurrencies have declined more than 1 percent during the past 24 hours whereas 34 are trading with overnight gains of more than a percent. The 24-hour trading volume however decreased close to 30 percent to $168 billion.
According to data from Coinglass, the 24-hour liquidation has dropped to $279 million from around $1 billion a day ago.
The CoinGlass Derivatives Risk Index (CDRI), a market risk indicator designed to quantify leverage usage, trading sentiment, and systemic liquidation risk in the crypto derivatives market currently indicates a reading of 51 implying neutral volatility. It was 49 a day ago, 52 a week ago and 45 a month ago, all portending neutral volatility.
Bitcoin has gained 0.24 percent in the past 24 hours to trade at $91,279.49. The current price is around 28 percent below the all-time high of $126,198.07 recorded on October 7. The original cryptocurrency is grappling with losses of 12.9 percent on a weekly basis and 2.3 percent on a year-to-date basis.
Outflows from Bitcoin Spot ETF products in the U.S. increased to $373 million from $255 million a day earlier. BlackRock's iShares Bitcoin Trust (IBIT) recorded highest-ever single-day outflows of $523 million. The market leader in Bitcoin Spot ETF products has witnessed net outflows for the 5th day in a row resulting in outflows exceeding $1.4 billion during the period. Grayscale Bitcoin Mini Trust ETF (BTC) however recorded inflows of $140 million.
Ethereum rallied 0.68 percent overnight to trade at $3,063.97. With prices declining 38 percent from the all-time-high, the leading alternate coin is saddled with weekly losses of 12.1 percent and year-to-date losses of 8 percent.
Ethereum Spot ETF products witnessed outflows of $74 million on Thursday versus $183 million a day earlier.
4th ranked XRP however 1.7 percent overnight dragging down its current trading price to $2.14.
5th ranked BNB gained 1 percent overnight resulting in price increasing to $922.97.
The price of 6th ranked Solana increased 1.8 percent overnight to $139.49.
TRON ranked 8th overall edged down 0.09 percent overnight and is currently changing hands at $0.2876.
9th ranked Dogecoin added 0.47 percent overnight and is currently changing hands at $0.1577.
10th ranked Cardano declined 0.77 percent overnight to trade at $0.4648.
63rd ranked Starknet (STRK) topped overnight gains among the top 100 cryptocurrencies with a gain of 24.6 percent. 83rd ranked MYX Finance (MYX) followed with gains of 16.4 percent.
36th ranked Internet Computer (ICP) topped overnight losses among the top 100 cryptocurrencies with a decline of more than 10 percent. 19th ranked Monero (XMR) also lost 7.5 percent overnight.
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