Major cryptocurrencies continued to trade in the red zone amidst anxiety ahead of the Federal Open Markets Committee pronouncement due on Wednesday afternoon.
Though markets widely expect the Fed to maintain status quo on rates, all eyes are on the commentary by the Fed Chair in the accompanying Press Conference. Markets are eagerly waiting to know the Fed Chair’s views on the sticky inflation as well as the renewed rate cut expectations.
Tuesday’s CPI update which showed an uptick in month-on-month inflation weighed on sentiment. Data released by the U.S. Bureau of Labor Statistics showed month-on-month headline inflation unexpectedly edging up to 0.1 percent. Markets had expected it to be steady at 0 percent. The core component thereof edged up as expected to 0.3 percent, from 0.2 percent earlier. Annual headline inflation edged down as expected to 3.1 percent, from 3.2 percent in the previous month whereas the core component remained steady at 4 percent in line with expectations.
The CME FedWatch tool, which tracks the expectations of interest rate traders currently shows rate cut possibilities at 4.1 percent in January, 43.7 percent in March, 76.7 percent in May and 92.8 percent in June. Growing rate cut expectations augur well for cryptocurrencies, given the prospect of a reduction in the opportunity cost of holding cryptocurrencies.
The Dollar Index, a measure of the Dollar’s strength against a basket of 6 currencies strengthened to 103.90, from 103.86 a day earlier.
Overall crypto market capitalization is currently at $1.54 trillion, versus $1.58 trillion a day earlier. All the top-10 non-stablecoin cryptocurrencies are trading in the overnight red zone.
Bitcoin (BTC) slipped 1.4 percent in the past 24 hours and 6.3 percent in the past week amidst the continuing sell-off in the crypto market. Bitcoin’s prices oscillated between $42,002.50 and $40,667.56 in the past 24 hours. Bitcoin’s crypto market dominance however increased to 52.06 percent, from 51.92 percent a day earlier. The most popular cryptocurrency has added 149 percent in 2023.
Ethereum, the leading alternate coin also witnessed sell-off, with losses exceeding 1.7 percent in the past 24 hours and 3.5 percent in the past week. Ether ranged between $2,230.10 and $2,150.75 in the past 24 hours amidst market share remaining steady at 16.95 percent.
BNB (BNB) slipped 0.80 percent in the past 24 hours, limiting weekly gains to 8.8 percent and year-to-date gains to 1.65 percent.
XRP (XRP) declined 2.8 percent in the past 24 hours and 2.9 percent in the past week. Year-to-date gains exceed 77 percent.
6th ranked Solana (SOL) slipped 6.6 percent in the past 24 hours. SOL has added 4.8 percent in the past week and 564 percent till date in 2023.
42nd ranked FTX Token (FTT) topped overnight gains with a surge of more than 17 percent. FTT has gained close to 25 percent in the past week and 555 percent in 2023.
90th ranked aelf (ELF) followed with overnight gains in excess of 10 percent.
86th ranked Bonk (BONK) is the greatest laggard with an overnight decline of close to 22 percent.
43rd ranked Celestia (TIA), 9th ranked Avalanche (AVAX) and 53rd ranked Synthetix (SNX) have all slipped more than 10 percent.
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