WASHINGTON (dpa-AFX) - Diminishing expectations of a quarter-percentage rate hike by the Federal Reserve in the FOMC decision to be announced on September 16 boosted sentiment in cryptocurrency markets. The easing in global bond yields, the U.S. dollar's retreat as well as hopes of favorable regulatory measures in the U.S. also aided the uptick in cryptocurrency prices.
Overall cryptocurrency market capitalization has jumped to $2.64 trillion, on an overnight basis while Bitcoin is trading 3.5 percent above the previous day's levels at $79,798.
Market expectations regarding the Fed's monetary policy action on September 16 has tilted towards a pause. According to the CME FedWatch tool, the likelihood of a quarter-percentage rate hike on September 16 has fallen below the half-mark to 48.4 percent, plunging from 63.2 percent a day earlier. The weak update from the labor market as well as dovish comments from a Fed official exacerbated the decline in Fed rate hike expectations.
Sovereign bond yields in the U.S. eased emphatically across tenors on Thursday morning. Long dated thirty-year bonds declined 0.44 percent while ten-year bonds plunged 0.77 percent. Yields on the shorter end of the curve too eased, albeit on a higher scale. Five-year bond yields dropped almost a percent whereas two-year bond yields declined 1.2 percent.
The dollar's weakness, the Japanese yen's rally and the plunge in the six-currency Dollar Index also bolstered crypto market sentiment and the dollar-denominated prices of cryptocurrencies. The Dollar Index is currently trading at 98.99, around 0.60 percent lower than 99.60 percent at the previous close.
During the past 24 hours, liquidation of short positions in the crypto market exceeded the liquidation of short positions. Liquidation of long positions amounted to $79, far lower than the liquidation of short positions which amounted to $176 million. The aggregate liquidations during the 24-hour period stood at $254 million, versus $352 million a day ago. Amidst the short squeeze, overall crypto market capitalization has rallied to $2.64 trillion.
At current prices, Bitcoin's dominance of the crypto market is 59.6 percent. Ethereum accounts for 11.2 percent of the market while other cryptocurrencies including stablecoins account for 29.2 of the overall cryptocurrency market.
Bitcoin (BTC), the largest cryptocurrency is currently trading 3.5 percent higher on an overnight basis at $79,798.30. The leading cryptocurrency has however lost 0.9 percent over the course of the past week.
Bitcoin Spot ETF products in the U.S. witnessed net inflows of $101 million on Wednesday versus net outflows of $237 million on Tuesday. iShares Bitcoin Trust ETF (IBIT) topped with net inflows of $115 million.
Bitcoin is continuing in the 12th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com. The leading cryptocurrency is positioned between 11th ranked Broadcom and 13th ranked Meta Platforms.
Ethereum (ETH) is trading 2.5 percent higher at $2,454.96. The leading alternate coin has lost 2.7 percent over the course of the past week.
Ethereum Spot ETF products in the U.S. witnessed net outflows of $48 million on Wednesday versus net inflows of $9 million on Tuesday. iShares staked Ethereum Trust ETF (ETHB) recorded net inflows of $53 million whereas iShares Ethereum Trust ETF (ETHA) recorded net outflows of $53 million.
Ethereum has slipped to the 64th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
4th ranked BNB (BNB) jumped 4.8 percent overnight resulting in price increasing to $718.50.
5th ranked XRP (XRP), a payments-focused cryptocurrency surged 5.8 percent overnight and is currently trading at $1.41. Weekly losses are however around 2.9 percent.
The price of 7th ranked Solana (SOL) rallied 4 percent overnight to $102.93. U.S.-listed Solana Spot ETF products witnessed net outflows of $6 million on Wednesday.
TRON (TRX) ranked 8th overall is currently trading 1.3 percent higher at $0.3291. 9th ranked Hyperliquid (HYPE) is trading 3.1 percent higher on an overnight basis, at $83.54.
Zcash (ZEC) positioned as 10th rank overall surged more than 6 percent overnight to trade at $863.05.
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