WASHINGTON (dpa-AFX) - Hotter-than-expected consumer price inflation readings released from the U.S. on Wednesday morning dampened sentiment in the cryptocurrency market. Overall market capitalization has dropped close to half percent overnight while market leader Bitcoin traded between $84,049 and $82,283.
The U.S. Bureau of Labor Statistics released the consumer price inflation readings for September on Wednesday morning which showed hotter-than-expected inflation position. Headline annual inflation which was seen rising to 3.6 percent from 3.4 percent in the previous month recorded 3.7 percent. The core component thereof which was seen rising to 2.5 percent from 2.4 percent in the previous month actually recorded 2.6 percent. Headline inflation on a month-on-month basis increased as expected to 0.6 percent from 0.4 percent in August. The core component thereof which was expected to edge down to 0.2 percent from 0.3 percent in August unexpectedly remained steady at 0.3 percent.
Minutes of the September meeting released recently had revealed a Federal Open Markets Committee focused on inflation combat. With the current inflation update surpassing consensus estimates, markets have renewed expectations of multiple rate hikes by the Federal Reserve.
The CME FedWatch tool that tracks the expectations of interest rate traders shows the likelihood of another quarter-percent rate hike in October at 45.9 percent versus 22.1 percent a day earlier and 17.7 percent a week earlier.
In respect of the December FOMC, expectations of a half percentage rate hike from the current level of 3.75-4.0 percent have increased to 49 percent from 18.7 a day earlier and 13.3 percent a week earlier. Simultaneously likelihood of a quarter percentage rate hike has reduced to 48.7 percent from 69.3 percent a day earlier and 66.3 percent a week earlier.
Amidst a sharp repricing of rate hike expectations, overall cryptocurrency market capitalization has dropped 0.48 percent to $2.78 trillion. The decline was accompanied by a 16-percent dip in trading volumes.
The aggregate liquidations during the 24-hour period amounts to $220 million. Liquidation of long positions amounted to $161 million, while the liquidation of short positions amounts to 60 million only.
Bitcoin (BTC), the largest cryptocurrency is currently trading 0.45 percent lower on an overnight basis at $82,872.52. Despite gains of 5.7 percent in the past 30 days, Bitcoin is trading with year-to-date losses of 5.3 percent.
Bitcoin Spot ETF products in the U.S. witnessed net inflows of $176 million on Tuesday versus net outflows of $65 million on Monday. Fidelity Wise Origin Bitcoin Fund (FBTC) topped with net inflows of $103 million followed by iShares Bitcoin Trust ETF (IBIT) that received inflows of $66 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 Saudi Aramco.
Ethereum (ETH) is trading 1.3 percent lower at $2,475.00. The leading alternate coin has lost 3.3 percent in the past week.
Ethereum Spot ETF products in the U.S. witnessed net inflows of $25 million on Tuesday versus net outflows of $85 million on Monday. Grayscale Ethereum Mini Trust ETF (ETH) topped with net inflows of $17 million.
Ethereum is currently ranked 61st in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
4th ranked BNB (BNB) slipped 0.12 percent overnight resulting in price decreasing to $740.19.
5th ranked XRP (XRP), a payments-focused cryptocurrency dropped 0.10 percent overnight and is currently trading at $1.36.
The price of 7th ranked Solana (SOL) decreased 0.82 percent overnight to $106.06. U.S.-listed Solana Spot ETF products witnessed net outflows steady at $1 million on Tuesday.
TRON (TRX) ranked 8th overall is currently trading 1.7 percent higher at $0.3334.
9th ranked Zcash (ZEC) rallied 2.75 percent overnight and the cryptocurrency is currently trading at $1,225.32. U.S.-listed Zcash Spot ETF products witnessed net outflows increasing to $5 million on Tuesday from $2 million on Monday.
10th ranked Hyperliquid (HYPE) dropped 0.54 percent on an overnight basis to $81.04.
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