WASHINGTON (dpa-AFX) - Cryptocurrency markets staged a minor rebound in the past 24 hours amidst renewed hopes of a Fed rate cut in December.
The Federal Reserve's next interest rate decision is just 15 days away. The FOMC, when it meets on December 10 will have to potentially choose between another interest rate cut to support the labor market or maintain status quo to guard against inflationary pressures.
Despite the recent FOMC minutes indicating a divided Fed, dovish comments from Fed officials and indications of weakness in the economy have lifted rate cut expectations over the past 1 week. According to the CME FedWatch tool, market expectation of a quarter percentage Fed rate cut in December is currently at 80.9 percent versus 84.4 percent a day ago and 50.1 percent a percent a week ago.
The crypto market capitalization is currently at $2.99 trillion, recording an overnight gain of 1.78 percent. The 24-hour trading volume has also increased 11.5 percent to $150 billion. 66 of the top 100 cryptocurrencies are trading with overnight gains of more than 1 percent whereas 9 of the top 100 cryptocurrencies have declined more than 1 percent during the past 24 hours.
Among the top 10 non-stablecoin cryptocurrencies, XRP, BNB, TRON, Hyperliquid and Bitcoin Cash and are trading with year-to-date gains whereas Bitcoin, Ethereum, Solana, Dogecoin and Cardano are trading with year-to-date losses.
The rebound in the cryptocurrency market comes amidst a mild decline in the dollar as well as Gold Futures. The Dollar Index which measures the dollar's strength against a basket of 6 currencies is currently at 100.07 versus 100.14 at the previous close.
Gold Futures for February settlement is currently trading at $4,162.95 per troy ounce, implying overnight decline of 0.17 percent.
Bitcoin has gained 1.5 percent in the past 24 hours to trade at $87,219.07. The current price is around 31 percent below the all-time high of $126,198.07 recorded on October 7. The original cryptocurrency is grappling with losses of 4.5 percent on a weekly basis and 6.6 percent on a year-to-date basis.
Data showed that Bitcoin Spot ETF products in the U.S. recorded outflows of $151 million on Monday versus inflows of $238 million on Friday. With outflows of $149 million, market leader BlackRock's iShares Bitcoin Trust (IBIT) constituted bulk of the outflows.
Ethereum surged 3.5 percent overnight to trade at $2,892.84. With prices declining 42 percent from the all-time-high, the leading alternate coin is saddled with weekly losses of 5.3 percent and year-to-date losses of 13.2 percent.
Ethereum Spot ETF products witnessed inflows increasing to $97 million on Monday from $56 million on Friday. With inflows of $93 million, market leader BlackRock's iShares Ethereum Trust ETF (ETHA) accounted for majority of the inflows.
Bitcoin has slipped to the 9th rank and Ethereum has risen to the 43rd rank in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
4th ranked XRP gained 7.5 percent overnight lifting its current trading price to $2.19.
5th ranked BNB added 1.2 percent overnight resulting in price decreasing to $852.09. The price of 6th ranked Solana jumped 5.4 percent overnight to $135.99.
TRON ranked 8th overall however slipped 1.5 percent overnight and is currently changing hands at $0.2722.
9th ranked Dogecoin gained 2.7 percent overnight and is currently changing hands at $0.1484.
10th ranked Cardano added 2.5 percent overnight to trade at $0.4161.
53rd ranked Kaspa (KAS) topped overnight gains among the top 100 cryptocurrencies with a surge of 21.8 percent.
15th ranked Zcash (ZEC) topped overnight losses with a decline of 5.8 percent.
Markets also digested the CoinShares Digital Asset Fund Flows Weekly Report that revealed outflows of $1.94 billion during the week ended November 21, the third largest outflow run since 2018 and the 4th consecutive week of outflows.
According to the report, Bitcoin topped flows by asset, iShares ETF topped flows by provider and United States topped flows by country during the past week. Year-to-date inflows declined to $44.4 billion whereas assets under management decreased to $167.3 billion.
Bitcoin-based products witnessed massive outflows of $1.3 billion followed by Ethereum-based products that recorded outflows of $589 million. Solana-based products also recorded outflows of $156 million.
XRP-based products bucked the trend, recording inflows of $89 million followed by Short Bitcoin products that recorded inflows of $19 million.
Bitcoin products account for an AUM of $131.3 billion. AUM of Ethereum-based products stood at $22.5 billion.
The provider-wise analysis of flows reveals that bulk of the outflows is from iShares ETFs which witnessed outflows of $1.6 billion. Coinshares Digital Securities followed with outflows of $148 million. Fidelity Wise Origin Bitcoin Fund also witnessed outflows of $116 million. Grayscale Investments however withstood the trend with inflows of $114 million.
iShares ETF tops with a cumulative AUM of $75.1 billion. Though year-to-date outflows exceed $3.1 billion, Grayscale Investments still accounts for an AUM of $24.1 billion. Fidelity Wise Origin Bitcoin Fund commands an AUM of $16.7 billion.
In addition to Grayscale Investments, ARK 21Shares has also recorded negative flows in the year-to-date period.
United States witnessed outflows of $1.7 billion during the period followed by Germany that recorded outflows of $118 million. Switzerland also saw outflows of $80 million. Sweden recorded outflows of $27 million.
Of the cumulative AUM of $167 billion, $117 billion is in United States. Switzerland follows with an AUM of $5.9 billion whereas Germany accounts for an AUM of $5.3 billion. Canada accounts for an AUM of $5.1 billion.
Sweden, Hong Kong and Brazil have recorded net outflows over the year-to-date period.
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