Cryptocurrency markets were encouraged by dwindling predictions of a quarter-percentage rate hike by the Federal Reserve in the FOMC decision to be published on September 16. The easing in global bond yields, the U.S. dollar’s retreat, and hopes for favourable regulatory measures in the U.S. contributed to the increase in cryptocurrency prices. Overall cryptocurrency market capitalisation has surged to $2.64 trillion overnight, while Bitcoin is trading 3.5 percent higher than the previous day’s levels at $79,798. Market expectations concerning the Federal Reserve’s monetary policy decision on September 16 have shifted toward a pause. According to the CME FedWatch tool, the probability of a quarter-percentage rate hike on September 16 has decreased to 48.4 percent, down from 63.2 percent the previous day. The lacklustre update from the labour market, coupled with dovish remarks from a Federal Reserve official, intensified the reduction in expectations for Fed rate hikes.
Sovereign bond yields in the U.S. exhibited a notable decline across various maturities on Thursday morning. Long-dated thirty-year bonds experienced a decline of 0.44 percent, whereas ten-year bonds saw a more significant drop of 0.77 percent. Yields on the shorter end of the curve also declined, though to a greater extent. Five-year bond yields decreased by nearly one percent, while two-year bond yields fell by 1.2 percent. The dollar’s weakness, the rally of the Japanese yen, and the decline in the six-currency Dollar Index have collectively enhanced sentiment in the crypto market and positively influenced the dollar-denominated prices of cryptocurrencies. The Dollar Index is presently at 98.99, reflecting a decline of approximately 0.60 percent from the previous close of 99.60. During the past 24 hours, the liquidation of short positions in the crypto market surpassed the liquidation of long positions. Liquidation of long positions totalled $79 million, significantly less than the liquidation of short positions, which reached $176 million. The total liquidations over the past 24 hours amounted to $254 million, compared to $352 million the previous day. Amidst the short squeeze, overall cryptocurrency market capitalisation has surged to $2.64 trillion.
At current prices, Bitcoin’s dominance of the cryptocurrency market stands at 59.6 percent. Ethereum constitutes 11.2 percent of the market, whereas other cryptocurrencies, including stablecoins, make up 29.2 percent of the total cryptocurrency market. Bitcoin, the largest cryptocurrency, is currently trading 3.5 percent higher on an overnight basis at $79,798.30. The leading cryptocurrency has, however, experienced a decline of 0.9 percent over the past week. On Wednesday, Bitcoin Spot ETF products in the U.S. experienced net inflows amounting to $101 million, contrasting with net outflows of $237 million recorded on Tuesday. iShares Bitcoin Trust ETF topped with net inflows of $115 million. Bitcoin remains in the 12th position in the global ranking of all assets according to market capitalisation data. The leading cryptocurrency occupies a position between Broadcom, ranked 11th, and Meta Platforms, ranked 13th. Ethereum is trading 2.5 percent higher at $2,454.96. The leading alternate coin has experienced a decline of 2.7 percent over the past week. On Wednesday, Ethereum Spot ETF products in the U.S. experienced net outflows amounting to $48 million, contrasting with net inflows of $9 million recorded on Tuesday.
iShares staked Ethereum Trust ETF recorded net inflows of $53 million, while iShares Ethereum Trust ETF experienced net outflows of $53 million. Ethereum has fallen to the 64th position in the global ranking of all assets based on market capitalisation, according to source. The 4th ranked BNB experienced a notable increase of 4.8 percent overnight, bringing its price to $718.50. 5th ranked XRP, a payments-focused cryptocurrency, surged 5.8 percent overnight and is currently trading at $1.41. Weekly losses stand at approximately 2.9 percent. The price of 7th ranked Solana experienced a 4 percent increase overnight, reaching $102.93. U.S.-listed Solana Spot ETF products experienced net outflows amounting to $6 million on Wednesday. TRON, positioned 8th overall, is presently trading 1.3 percent higher at $0.3291. 9th ranked Hyperliquid is trading 3.1 percent higher on an overnight basis, at $83.54. Zcash, positioned as the 10th overall, experienced an increase of over 6 percent overnight, trading at $863.05.
