Cryptocurrencies have seen a downturn as the markets reacted to the continuing crypto-related tensions between the U.S. and China. Worries about the latest stablecoin regulations issued by the Bank of England have influenced market sentiment. The total value of the crypto market has dropped by more than a quarter percent in the past 24 hours. Tensions between the U.S. and China escalated as reports surfaced of China alleging that the U.S. had taken 127,000 Bitcoins. Sources indicate that the U.S. government has disputed the claims, asserting that the seizure was a legitimate law enforcement action targeting criminal proceeds. The recent draft guidelines on GBP stablecoins issued by the Bank of England have impacted market sentiment. On Monday, the Bank of England published a consultation paper outlining its suggested regulatory framework for systemic stablecoins linked to sterling.
A notable update reveals that the draft proposal from the Bank of England has set temporary holding limits of £20,000 per coin for individuals and £10 million for businesses. This action, however, has not garnered a positive response from the crypto markets. The document indicates that systemic stablecoin issuers may hold as much as 60 percent of their backing assets in short-term U.K. securities. Public borrowing. For the remaining 40 percent, issuers will obtain non-remunerated accounts at the Bank of England to ensure robust redemption and uphold public trust, even during challenging times. The price movement takes place amid a disappointing labor market update. In a recent weekly report from Automatic Data Processing, Inc., it was disclosed that U.S. private employers cut their workforce by an average of 11,250 jobs per week during the four-week period ending October 25. The report indicated that the labor market saw a slowdown in activity during the second half of the month compared to the first two weeks, with weak data compounded by the absence of official payrolls information from the Labor Department.
Reports shows a 65.4 percent likelihood of a quarter percentage rate reduction in December. The figure was at 66.9 percent just one day ago and was noted at 62 percent a week before that. The Fear and Greed Index has decreased to 26 from 31 just a day earlier, remaining firmly in the fear zone. In the latest market movements, the Dollar Index, which measures the dollar’s strength against a selection of six currencies, experienced a rally of 0.14 percent overnight, reaching 99.62. Meanwhile, gold saw a resurgence with an overnight rise of 0.36 percent, with Gold Futures for December delivery currently valued at $4,130.95 per troy ounce. Following recent developments, the overall cryptocurrency market capitalization has decreased by 0.3 percent in the past 24 hours, currently at $3.53 trillion, with 25 out of the top 100 cryptocurrencies surging by more than 1 percent and 26 facing declines of over 1 percent, while trading volume has dropped by more than 11 percent to $160 billion.
Bitcoin saw a minor decrease of 0.3 percent overnight, now priced at $104,975.22, placing the cryptocurrency around 17 percent below its peak of $126,198.07 achieved on October 7. The original cryptocurrency is holding onto its gains, reflecting a rise of 3.3 percent over the last week and 12.4 percent since the beginning of the year, with trading activity varying from $105,480.11 to $102,457.33. On Tuesday, Bitcoin-based Spot ETF products in the U.S. experienced notable inflows of $524 million, compared to $1 million on Monday, with iShares Bitcoin Trust seeing total inflows of $224 million. Ethereum declined 0.8 percent overnight to $3,550.05, with 2025 gains at 6.6 percent and trading activity ranging from $3,591.22 to $3,404.86, while Tuesday saw $107 million in outflows from Ethereum Spot ETFs, led by $76 million from Grayscale Ethereum Mini Trust ETF. The 4th ranked cryptocurrency declined 1.1 percent to $2.43; 5th ranked BNB fell 0.9 percent to $972.96; Solana dropped 2.1 percent to $160.46 with recent ETF inflows of $8 million; TRON gained 0.4 percent to $0.2999; Dogecoin fell 0.7 percent to $0.1768; Cardano fell 1.5 percent to $0.5736; Canton Network surged 17 percent; Aster rose 11.7 percent; OFFICIAL TRUMP declined 7.3 percent; and DoubleZero saw losses exceeding 5 percent.