Sentiment in cryptocurrency markets has experienced a modest increase over the past 24 hours, fueled by optimistic derivative activity and a rebound in global financial markets. Gold and the U.S. dollar have seen an uptick, while bond yields have mostly eased. Following the recent rebound, it’s crucial to recognize that cryptocurrencies continue to trail behind conventional financial markets. Bitcoin and Ethereum are still facing losses in their trading performance this year. In the present scenario of the leading 10 non-stablecoin cryptocurrencies, five are showing year-to-date gains, while the remaining five are encountering year-to-date losses. Financial markets are preparing for the release of the FOMC minutes on Wednesday afternoon, along with the earnings update from chip giant NVIDIA after the bell. The Federal Open Markets Committee, as expected by many, has lowered the target range for the federal funds rate by a quarter percentage point to 3.75 to 4 percent during its recent meeting on October 29. The Committee highlighted its strong commitment to promoting full employment and reaching its inflation goal of 2 percent. The Committee has made a decision to complete the decrease of its total securities holdings on December 1. However, a careful tone from the Fed Chair during the press briefing that followed the rate cut announcement unsettled market sentiment.
Before the Fed’s policy announcement, there was strong anticipation in the markets for another rate reduction in the upcoming review set for December. However, the Fed Chair’s remarks removed any possibility of such assurance, leading to a decline in market sentiment. Even with recent indications from Fed officials pointing to a lower likelihood of a rate cut in December, market participants are keenly awaiting the release of the minutes from the most recent FOMC meeting. The anticipation for the forthcoming release of the FOMC minutes is tied to the diverse voting patterns concerning the monetary policy decision. A recent decision saw 10 of the 12 members voting for a quarter percentage cut, with two members voicing their disagreement. Among those who disagreed with the decision, one suggested cutting the rate by half a percentage point, while another preferred to keep the current rate unchanged. Nonetheless, market sentiment remains inclined towards a “hold” by the Federal Reserve on December 10. Reports shows that the probability of the Fed keeping its current position is at 53.4 percent, a decrease from 57.6 percent the previous day and notably lower than the 37.1 percent recorded. The Dollar Index, measuring the dollar’s strength against a selection of six currencies, is now at 99.64, up from the last close of 99.55. Gold Futures for December settlement are currently trading at $4,090.79 per troy ounce, showing overnight gains of 0.60 percent.
In the U.S., ten-year sovereign bond yields have increased significantly, whereas in the U.K., France, Germany, and other areas, they have decreased. Futures are displaying a slight increase, hovering just above the neutral point. The total market cap for cryptocurrencies has risen by 0.20 percent over the past 24 hours, now standing at $3.12 trillion. Over the past day, only 18 of the leading 100 cryptocurrencies have experienced a drop greater than 1 percent, whereas 34 have benefited from overnight increases of more than 1 percent. The trading volume over the past 24 hours experienced a notable decrease of almost 30 percent, falling to $168 billion. Data shows that the 24-hour liquidation has dropped notably to $279 million, down from around $1 billion just a day earlier. Derivatives Risk Index, designed to gauge leverage usage, trading sentiment, and systemic liquidation risk in the crypto derivatives market, currently indicates a reading of 51, reflecting neutral volatility. The price was at 49 just a day ago, rose to 52 a week earlier, and was at 45 a month prior, showing a pattern of neutral volatility. Bitcoin has seen a 0.24 percent rise in the past 24 hours, currently valued at $91,279.49, around 28 percent lower than its peak of $126,198.07. The original cryptocurrency has experienced a decrease of 12.9 percent in the past week and a decline of 2.3 percent since the beginning of the year. Outflows from Bitcoin Spot ETF products in the U.S. jumped to $373 million, increasing from $255 million just a day earlier.
BlackRock’s iShares Bitcoin Trust experienced unprecedented single-day outflows, totaling $523 million. The leading provider of Bitcoin Spot ETF products has seen net outflows for the fifth straight day, with total outflows exceeding $1.4 billion in this period. The Grayscale Bitcoin Mini Trust ETF has experienced inflows amounting to $140 million. Ethereum saw an increase of 0.68 percent overnight, with its trading price reaching $3,063.97. The prominent alternative cryptocurrency is experiencing a notable decline, having fallen 38 percent from its peak value. This week, it has experienced a drop of 12.1 percent, leading to an overall decrease of 8 percent for the year so far. On Thursday, Ethereum Spot ETF products saw outflows amounting to $74 million, a significant drop from the $183 million noted the day before. The 4th ranked XRP has experienced a drop of 1.7 percent overnight, resulting in a current trading price of $2.14. Currently holding the 5th rank, BNB saw a 1 percent increase overnight, bringing its price to $922.97. The 6th ranked Solana experienced an increase of 1.8 percent overnight, with its price reaching $139.49. TRON, currently in 8th place, experienced a minor decrease of 0.09 percent overnight and is trading at $0.2876. Dogecoin, now in the 9th position, experienced a slight overnight rise of 0.47 percent and is trading at $0.1577. Cardano, now positioned at the 10th rank, saw a decrease of 0.77 percent overnight, with a trading price of $0.4648. Currently sitting at the 63rd rank, this cryptocurrency led the overnight surge among the top 100, boasting an impressive gain of 24.6 percent. MYX Finance, currently sitting at the 83rd rank, recorded impressive gains of 16.4 percent. In a significant development, the 36th ranked Internet Computer was at the forefront of overnight losses within the top 100 cryptocurrencies, facing a drop of more than 10 percent. Monero, currently sitting at the 19th rank, experienced a decline of 7.5 percent overnight.