Sentiment has declined in cryptocurrency markets as fresh worries about the Fed’s monetary policy direction arise, fueled by unexpectedly robust jobs data from the U.S. The notable decline, along with considerable withdrawals from Bitcoin Spot ETF products on Thursday, further unsettled market sentiment. Data indicating that non-farm payrolls increased by 119 thousand in September, showing a recovery from a revised decline of 4 thousand in August. The most significant job growth in five months exceeded expectations of 50 thousand. The unemployment rate, which was stable at 4.3 percent, has increased to 4.4 percent. This change contributes to the ambiguity surrounding policy as we near the Fed’s interest rate decision, just 19 days from now. The market’s expectation for a quarter percentage Fed rate cut in December, which was almost 98 percent just a month prior, has experienced a notable drop. The current figure is 35.4 percent, up from 30.1 percent the previous day and down from 44.4 percent a week earlier. On Thursday, there was a notable decline in Futures, influenced by worries about interest rates and apprehensions surrounding valuations that affected market sentiment. The Nasdaq Composite fell by 2.2 percent, and the S&P 500 experienced a drop of 1.6 percent. The Dow Jones Industrial Average saw a drop of 0.84 percent. Market sentiment remains weak, as Wall Street Futures display uncertainty and a lack of clear direction currently.
The ongoing withdrawals from Bitcoin ETF products on Thursday had a notable effect on market sentiment. Recent data indicates that Bitcoin Spot ETF products in the U.S. experienced significant outflows of $903 million on Thursday, contrasting sharply with the inflows of $75 million observed on Wednesday. Market leader BlackRock’s iShares Bitcoin Trust experienced significant outflows, totaling $356 million. The decline in Bitcoin’s value has led to selloffs in stocks linked to the crypto market too. Virginia-based Strategy Inc, leading the pack among public Bitcoin treasury firms, saw a decline of over 5 percent on Thursday. Worries regarding the potential exclusion of the scrip from key indices are considerable, as this might lead to a series of selloffs from passive index-linked investments, further weakening market sentiment. Amidst waning retail sentiment and tough global market conditions, the total value of the cryptocurrency market saw a notable decline overnight, hitting a low of $2.82 trillion, with Bitcoin dropping to a low of $80,659.81. Ethereum saw a drop, reaching a low of $2,626.87 in the past 24 hours. The current market capitalization of the crypto sector is $2.87 trillion, showing a decline of 8.3 percent overnight. The trading volume over the past day has increased by 51 percent, now totaling $279 billion. A significant change is observed as 87 of the leading 100 cryptocurrencies are facing overnight declines of more than 1 percent. Over the past day, none of the leading 100 cryptocurrencies have recorded increases beyond 1 percent. Data reveals that the 24-hour liquidation totals $2.2 billion, with $2.03 billion attributed to long positions and $177 million to short positions.
In the realm of the top 10 non-stablecoin cryptocurrencies, some are showcasing year-to-date gains, while others are experiencing year-to-date losses. The Fear and Greed Index has further declined into the “extreme fear” zone, now at a level of 11. The figure was at 15 the day before. The decline in the cryptocurrency market coincides with the dollar’s strength and an increase in gold prices. The Dollar Index, which measures the dollar’s strength against a group of six currencies, is currently at 100.19, up from 100.16 at the previous close. Gold Futures for December settlement are currently trading at $4,078.31 per troy ounce, showing an overnight increase of 0.47 percent. Bitcoin has seen a notable decline of 8.3 percent in the past 24 hours, now valued at $84,116.88. The current price is about 33 percent lower than the peak of $126,198.07, achieved on October 7. The original cryptocurrency has experienced a decrease of 11.2 percent in the last week and a decline of 9.9 percent since the beginning of the year. Ethereum saw a drop of 8.4 percent overnight, currently priced at $2,756.75. Prices have dropped 44 percent from their peak, causing the top alternative currency to struggle with weekly losses of 10.8 percent and year-to-date losses of 17.3 percent. Ethereum Spot ETF products saw a significant increase in outflows, rising to $262 million on Thursday, compared to $37 million the day before. Market leader BlackRock’s iShares Ethereum Trust experienced significant outflows, totaling $123 million.
Bitcoin’s share in the crypto market is currently at 58.3 percent, down from the 58.6 percent noted the previous day. Ethereum currently accounts for 11.5 percent of the overall crypto market, a decrease from its earlier share of 11.7 percent just a day prior. Residual altcoins have experienced an increase in market share, rising to 30.2 percent from 29.7 percent just a day earlier. Bitcoin is currently in the 8th position, whereas Ethereum is ranked 44th in the global asset rankings based on market capitalization, as reported by companiesmarketcap.com. The 4th ranked asset experienced a decline of 8.9 percent overnight, bringing its current trading price down to $1.93. Currently ranked 5th, the asset experienced a decline of 8.4 percent overnight, bringing its price down to $823.70. The price of Solana experienced a significant drop of 9.6 percent overnight, settling at $127.72. Currently positioned 8th overall, TRON experienced a decline of 2.6 percent overnight and is now trading at $0.2771. The 9th ranked Dogecoin experienced a significant drop of 11.3 percent overnight, now trading at 0.1402. Cardano, currently in the 10th position, experienced a significant drop of 12.9 percent overnight, now trading at $0.4065. Canton, ranked 35th, was at the forefront of bouncing back from overnight losses among the top 100 cryptocurrencies, even though it faced a drop of 21.1 percent. Telcoin, currently sitting at the 95th rank, experienced a significant drop of 19.8 percent overnight.