WASHINGTON (dpa-AFX) - A sharp downward repricing in rate hike expectations from the Federal Reserve abetted a rebound in crypto markets, lifting Bitcoin to a 24-hour high of $82,539. The dollar's retreat as well as a decline in crude oil prices supported crypto market sentiment, lifting overall crypto market capitalization more than 1.5 percent in the past 24 hours.
The CME FedWatch tool that tracks the expectations of interest rate traders currently shows the likelihood of another quarter-percent rate hike in October at 14.9 percent versus 27.7 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 decreased to 13.3 percent from 23.6 percent a day earlier and 14.3 percent a week earlier. Simultaneously likelihood of a quarter percentage rate hike has increased to 77.3 percent from 65.7 percent a day earlier and 69.8 percent a week earlier.
The lowering in Fed rate hike expectations came amidst comments from Fed Chair Kevin Warsh at the IMF-World Bank Annual Meetings in Bangkok. Warsh declined forward decisions about the outcome of the FOMCs but acknowledged a synchronous tightening by central banks around the world. With the Fed Chair noting that the global economy had moved largely in line with the Fed's expectations, markets shed worries about hotter-than-expected inflation readings goading the Fed to another rate hike in October. The Fed Chair's comments also helped eclipse the negative sentiment towards cryptocurrencies triggered by the selloff in technology and artificial intelligence stocks.
The six-currency Dollar Index which had declined to 102.06 on Thursday has decreased further to 101.62, boosting crypto market sentiment. Amidst the sharp repricing in rate hike expectations as well as the dollar's retreat and the crude oil price slide, overall cryptocurrency market capitalization has jumped 1.53 percent to $2.76 trillion. The rally is accompanied by a 20-percent dip in trading volumes.
Bitcoin (BTC), the largest cryptocurrency is currently trading 0.92 percent higher on an overnight basis at $81,961.77. Despite gains of 7.95 percent in the past 30 days, Bitcoin is trading with year-to-date losses of 7.6 percent.
Bitcoin Spot ETF products in the U.S. witnessed net inflows of $5 million on Thursday versus net outflows of $261 million on Wednesday. Market leader iShares Bitcoin Trust ETF (IBIT) topped inflows with $17 million whereas Grayscale Bitcoin Trust ETF (BTC) topped outflows with $8 million.
Bitcoin is currently in the 11th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com. The leading cryptocurrency is positioned between 10th ranked Meta Platforms and 12th ranked Broadcom.
Ethereum (ETH) has jumped 3.2 percent overnight to $2,448.34. The leading alternate coin has however lost 2.1 percent in the past week.
Ethereum Spot ETF products in the U.S. witnessed net outflows declining to $60 million on Thursday from $130 million on Wednesday. iShares Ethereum Trust ETF (ETHA) topped with net outflows of $44 million.
Ethereum is currently ranked 63rd in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
4th ranked BNB (BNB) rallied 1.1 percent overnight resulting in price increasing to $729.95.
5th ranked XRP (XRP), a payments-focused cryptocurrency added 1.5 percent overnight and is currently trading at $1.33.
The price of 7th ranked Solana (SOL) surged 3.2 percent overnight to $106.31. U.S.-listed Solana Spot ETF products witnessed net outflows increasing to $10 million on Thursday from $1 million on Wednesday. Grayscale Solana Staking ETF (GSOL) topped with net outflows of $6 million.
TRON (TRX) ranked 8th overall is currently trading 1.3 percent higher at $0.3356.
9th ranked Zcash (ZEC) rallied 11.5 percent overnight and the cryptocurrency is currently trading at $1,227.24. U.S.-listed Zcash Spot ETF products witnessed net outflows of $15 million on Thursday as compared with net inflows of $4 million on Wednesday.
10th ranked Hyperliquid (HYPE) gained 1.9 percent on an overnight basis to $81.50. U.S.-listed Hyperliquid Spot ETF products witnessed net outflows increasing to $10 million on Thursday from $5 million on Wednesday.
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