Cryptocurrencies remained edgy, losing close to a percent in the past 24 hours, amidst Fed officials adding a hawkish narrative to the forward guidance and the deadlock over the debt ceiling in the U.S. showing no signs of resolution.
Data revealing latent price pressures in the economy and the solid jobs data have raised questions on the Fed’s ability to pause on its rate hikes, as hinted earlier.
The hawkish commentary by Fed officials caused the Dollar to surge ahead, lifting the Dollar Index which measures the Dollar’s strength against a basket of 6 currencies as much as 103.04. It is currently at 102.93, having added 0.36 percent in the past 24 hours.
The aggressive guidance by Fed officials also lifted expectations of rate hike by the Fed in its next review due in 28 days. According to the CME FedWatch tool, the probability assigned to a quarter point rate hike increased to 27.1 percent, from 22.5 percent a day earlier. Simultaneously, expectations of a pause dropped to 72.9 percent, from 77.5 percent a day earlier.
Meanwhile, talks between President Joe Biden and House Speaker Kevin McCarthy that remained inconclusive, raised tensions in Wall Street and the wider financial world. Sentiment suffered amidst uncertainty over the debt ceiling crisis which could potentially jeopardize the Dollar’s supremacy as well as trigger a catastrophic turbulence in financial markets worldwide.
Amidst these developments, overall crypto market capitalization dropped to $1.12 trillion, from $1.13 trillion a day earlier.
Bitcoin (BTC) shed 1.4 percent overnight and 5 percent in the past week to trade at $26,713.78. Meanwhile stablecoin issuer Tether on Wednesday announced that it would invest monthly profits into Bitcoin.
Ethereum (ETH) lost 1.2 percent overnight and 4 percent over the past seven days and is currently changing hands at $1,798.50.
4th ranked BNB (BNB) shed a little less than half a percent in the past 24 hours and a little less than 2 percent in the past week.
6th ranked XRP (XRP) withstood the turbulence and rose 5.7 percent after a judge refused the SEC’s motion to seal the documents related to a speech by former SEC Director Bill Hinman that explained why Bitcoin and Ethereum were not considered as securities. The coin has gained 3.6 percent over the past week.
7th ranked Cardano (ADA) edged up more than half a percent overnight but is trailing the previous week’s levels by a little less than half a percent.
Despite overnight gains of 1.8 percent, 8th ranked Dogecoin (DOGE) continues to trade with weekly losses of 1.3 percent.
9th ranked Solana (SOL) shed 1.2 percent in the past 24 hours and 2.7 percent in the past seven days.
10th ranked Polygon’s (MATIC) overnight gains of 1.7 percent did not suffice to erase losses made over the past week, which still exceed 3.7 percent.
11th ranked Litecoin (LTC) jumped 3 percent overnight and 13 percent over the past week amidst the ongoing halving narrative.
Gaming tokens 54th ranked Axie Infinity (AXS) and 48th ranked Decentraland (MANA) topped the price charts with gains of more than 7 percent. AXS rallied 8 percent after the game became available for download on the Apple Appstore.
67th ranked Pepe (PEPE) erased 8.5 percent overnight and 21.5 percent over the past week.
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