Cryptocurrencies faced a notable drop as reduced hopes for rate cuts from the Federal Reserve, along with stern comments from Fed officials, adversely affected market sentiment towards digital assets. The total value of the crypto market has dropped by more than 6 percent in the past 24 hours. In the last 24 hours, Bitcoin reached a low of $96,071.89, and Ethereum dropped to a low of $3,112.43. Expectations for the forthcoming data release indicate a strong U.S. economy, which may ease the Fed’s immediate worries about economic growth and, in turn, lessen prospects for rate reductions. The Fed’s concerns about inflation, along with optimism for an improved labor market, have resulted in diminished expectations for rate reductions. Expectations of interest rate traders, shows a 49.6 percent likelihood of a quarter percentage rate reduction in December. The figure has dropped from 62.9 percent yesterday and 66.9 percent a week ago. Statements from Fed officials that provided no insight into a possible rate cut in December also influenced market sentiment for cryptocurrencies. Concerns about a possible credit squeeze are negatively impacting sentiment towards cryptocurrencies, particularly Bitcoin, which may put pressure on digital asset treasuries.
According to reports, public companies possess a total of 1.05 million Bitcoin, which accounts for almost 5.3 percent of the total circulating supply of Bitcoin. Strategy Inc, based in Virginia, leads the pack with an impressive holding of over 641.7k Bitcoins. Earlier this month, reports surfaced indicating that French semiconductor company Sequans Communications S.A. liquidated Bitcoin from its treasury to settle its own debt. Following the unprecedented conclusion of the longest government shutdown in U.S. history, global markets are feeling a surge of relief. However, the trajectories of Bitcoin, the emerging digital asset, and gold, the preferred safe-haven asset, have diverged considerably. As Gold continues to rise, Bitcoin has been steadily declining. Concerns about the financial health of global economies, along with central banks’ interest in precious metals, have led to a rise in demand for gold. Gold Futures for December settlement are currently trading at $4,173, having decreased from the all-time high of $4,398 per troy ounce recorded on October 20. This still indicates remarkable year-to-date gains of 58 percent. The Dollar Index, measuring the dollar’s strength against a group of six currencies, is presently trading above the neutral point. The current value is 99.31, in contrast to the last close of 99.16.
Market sentiment has once again descended into a state of fear, as indicated by Fear and Greed Index. The index has fallen to 22 from 25 just a day earlier, as the chances of rate cuts decreased and cryptocurrency markets braced for a potential “hold” decision by the Federal Reserve in December. Due to recent developments, the overall cryptocurrency market capitalization has seen a notable drop of 6.1 percent in the past 24 hours, currently at $3.27 trillion. In the past day, 87 out of the top 100 cryptocurrencies have seen a drop of more than 1 percent, with just 2 showing overnight increases of over a percent. The trading volume over the past 24 hours has increased by more than 35 percent, hitting $240 billion. Bitcoin has seen a notable decline of 5.9 percent overnight and 3.6 percent over the past week, currently priced at $96,997.79. This indicates a drop of about 23 percent from its peak of $126,198.07, attained on October 7. The original cryptocurrency is holding a year-to-date increase of 3.9 percent. On Thursday, Bitcoin-based Spot ETF products in the U.S. saw a significant increase in outflows, climbing to $867 million from $278 million the day before. The Grayscale Bitcoin Mini Trust ETF experienced significant outflows amounting to $318 million, while the iShares Bitcoin Trust also faced notable outflows of $257 million.
Ethereum saw a notable decline of 9.3 percent overnight, currently priced at $3,182.19. Year-to-date performance has resulted in a decrease of 4.5 percent. Ether is presently valued at a level that is 36 percent beneath its peak price. On Thursday, Ethereum-based Spot ETF products saw outflows amounting to $260 million, in contrast to the $184 million outflows recorded the day before. The iShares Ethereum Trust ETF experienced significant outflows, totaling $137 million. Currently ranked 4th, XRP experienced a decline of 9.3 percent overnight, bringing its trading price down to $2.28. Currently ranked 5th, BNB experienced a drop of 5.3 percent overnight, resulting in a price of $914.23. During the night, the value of the 6th ranked Solana dropped by 9.1 percent, ending at $141.69. On Thursday, inflows for Solana-based Spot ETF products fell to $1.5 million, a notable decline from the $18.1 million noted on Wednesday. Currently holding the 8th position overall, TRON experienced a decline of 2.1 percent overnight and is now trading at $0.2927. Dogecoin, now in the 9th position, saw a drop of 7.5 percent overnight and is trading at $0.1632. Cardano, now positioned at the 10th rank, saw a drop of 9.2 percent overnight, with its trading price falling to $0.5174. Among the top 100 cryptocurrencies, the 14th ranked Zcash saw a gain of 4.9 percent, while the 16th ranked UNUS SED LEO rallied by 2.3 percent, making them the only two to trade in the overnight green zone. 65th ranked Story stood out as the frontrunner in bouncing back from overnight losses among the top 100 cryptocurrencies, even though it faced a drop of 14.7 percent. Jupiter, currently sitting at 71st, Aave at 37th, and Aerodrome Finance at 78th have all experienced declines exceeding 13 percent.