Cryptocurrencies have continued to rise, driven by the dollar’s weakness, which is largely attributed to robust expectations for rate cuts from the Federal Reserve. The U.S. Dollar Index hovering around a 30-day low has bolstered sentiment for cryptocurrencies. The index that gauges the strength of the U.S. Dollar against a basket of six currencies stands at 98.82, down from 98.85 on Wednesday, 99.60 a week prior, and 100.22 a month earlier. Increasing anticipation of a dovish monetary policy from the Fed has influenced a downward trend for the Dollar throughout the past month. Expectations for a Fed rate cut continue to be robust, though slightly diminished compared to the previous day’s levels. Reports indicates that the probability of a quarter percentage rate cut in the Federal Reserve’s decision set to be revealed on December 10 has decreased to 89.2, down from 90 just a day prior. The market is currently focused on the upcoming weekly data regarding initial jobless claims from the previous week, set to be released on Thursday, along with the PCE-based inflation readings for September, which are expected on Friday.
The Federal Reserve’s dual mandate of managing inflation alongside growth objectives makes the upcoming data releases critically important. Data reveals that market leader BlackRock’s iShares Bitcoin Trust ETF has seen inflows totaling $42 million. Aggregate flows associated with all Bitcoin Spot ETFs in the U.S. have culminated in a net outflow of $15 million. On Wednesday, Ethereum Spot ETF products in the U.S. saw an impressive inflow of $140 million. The iShares Ethereum Trust ETF has seen impressive inflows, reaching a total of $53 million. The cryptocurrency market is experiencing a slight uptick in sentiment, as indicated. The index has shown further improvement within the “fear” territory. The index stands at 27 today, up from 22 yesterday and significantly higher than the 18 (extreme fear) recorded a week prior. The index reached a yearly low of 10, indicating extreme fear, on November 22. Bitcoin, the market leader, fluctuated between $94,060.77 and $91,782.96. Meanwhile, Ethereum, the leading alternative coin, saw a range from $3,238.56 to $3,034.76 in the same timeframe. Even with the recent gains, apprehensions regarding possible volatility in the market remain prevalent. In a landscape shaped by favorable Fed sentiment, 36 of the top 100 cryptocurrencies are experiencing overnight gains exceeding 1 percent. Just 17 of the top 100 cryptocurrencies have experienced a decline exceeding 1 percent. The overall cryptocurrency market capitalization has seen an increase of 0.91 percent overnight, reaching $3.17 trillion. The rise was, however, coupled with a drop of 14.1 percent, bringing it down to $148 billion.
In the realm of the top 10 non-stablecoin cryptocurrencies, XRP, BNB, TRON, Hyperliquid, and Bitcoin Cash are showcasing year-to-date gains. Conversely, Bitcoin, Ethereum, Solana, Dogecoin, and Cardano are experiencing year-to-date losses. Bitcoin has seen a slight increase of 0.16 percent, currently trading at $93,172.82. The current price sits approximately 26 percent beneath the all-time high of $126,198.07, which was reached on October 7. The original cryptocurrency has seen a 1.9 percent increase over the past week; however, it is facing a year-to-date decline of 0.24 percent. Ethereum surged by 3.9 percent overnight and has gained 5.3 percent over the past week, now trading at $3,188.32. Even with the recent rebound, the top alternative coin remains 36 percent beneath its all-time high and is facing year-to-date losses of 4.3 percent. The price fluctuations occurred against the backdrop of Ethereum launching its much-anticipated “Fusaka” upgrade on Wednesday.
Bitcoin held steady at the 8th position, while Ethereum climbed to the 38th spot in the global asset rankings based on market capitalization, as reported by companiesmarketcap.com. The 4th ranked XRP experienced a decline of 0.98 percent overnight, bringing its current trading price down to $2.15. The disappointing price action comes in the face of robust demand for XRP Spot ETF products in the U.S. According to data, the cumulative total net inflows to XRP Spot ETF products in the U.S. reached $874 million as of Wednesday. The ETFs made their debut in mid-November. The 6th ranked Solana experienced a rally of 1.2 percent overnight, bringing its price to $143.21. According to data, the cumulative total net inflows to SOL Spot ETF products in the U.S. reached $619 million as of Wednesday. The ETFs made their debut in late-November. TRON, holding the 8th position overall, saw an increase of 0.47 percent overnight and is presently trading at $0.2806.