Cryptos Weak Ahead Of Fed

Cryptocurrencies slipped below the flatline, shedding more than half a percent overnight even as world financial markets wait for the Fed to pronounce its monetary policy decision.

The Federal Reserve is widely expected to hold rates in the FOMC decision to be announced on Wednesday.

The CME FedWatch tools shows a 98.2 percent probability for the Fed to maintain status quo on rates on Wednesday. However, interest rate traders expect a 24.5 percent probability for a quarter point rate hike in the next meeting in December. The expected likelihood of a quarter point hike increases to 29.6 percent in the January 2024 meeting but decreases to 25.3 percent in the March 2024 meeting.

Amidst data that revealed a resilient U.S. economy, the Fed is widely expected to keep interest rates restrictive for longer than feared. Ten-year bond yields in the U.S declined more than quarter percent as the U.S. government indicated reduced borrowing. The recent sharp rise in bond yields had to an extent obviated the need for another immediate rate hike by the Fed.

Overall crypto market capitalization dropped to $1.27 trillion, from $1.28 trillion a day earlier.

Bitcoin slipped 1.4 percent overnight to trade at $34,261.05. Despite the growing anticipation of an SEC approval for a Bitcoin Spot ETF, BTC has shed more than half a percent over the past week. Year-to-date gains however exceed 107 percent.

Ethereum also slipped 1.3 percent in the past 24 hours and is currently changing hands at $1,797.89.

With a market capitalization of $669 billion, Bitcoin dominates 52.6 percent of the overall crypto market. Ethereum which has a market capitalization of $216 billion, follows with a crypto market dominance of 17.04 percent.

Third ranked Tether (USDT), the highest ranking stablecoin with a market capitalization of $84.6 billion accounts for 6.6 percent of the overall crypto market.

4th ranked BNB (BNB) slipped 0.8 percent overnight to trade at $226.82. Market capitalization has also fallen to $34.4 billion.

5th ranked XRP (XRP) recorded a surge of more than 4 percent to trade at $0.5993. Market capitalization has also jumped to $32.1 billion.

Stablecoin USDC (USDC) ranked 6th overall commands a market capitalization of $24.9 billion.

7th ranked Solana (SOL) gained 3.7 percent in the past 24 hours to trade at $36.20. Market cap of the cryptocurrency also increased to $15.2 billion.

The top-5 non-stablecoin cryptocurrencies viz BTC, ETH, BNB, XRP and SOL account for 76 percent of the overall crypto market capitalization aggregating to $1.27 trillion.

80th ranked BitTorrent (New) BTT topped overnight gains with a surge of 9.6 percent, followed by Arweave (AR) that has gained 9.5 percent. 25th ranked Cosmos (ATOM), 11th ranked Toncoin (TON) and 45th ranked THORChain (RUNE) also dazzled with overnight gains of more than 7 percent.

49th ranked Render (RNDR) slipped 11 percent overnight. RNDR has gained 479 percent in 2023 and the current correction comes amidst the U.S. govt’s executive order on AI. The executive order that introduces a range of measures to ensure the safety and trustworthiness of AI technologies is expected to have a profound impact on the development and use of such technologies. Other cryptocurrencies tagged to AI & Big Data like 44th ranked Injective (INJ) and 45th ranked The Graph (GRT) also slipped around 3 percent in the past 24 hours.

92nd ranked WOO Network (WOO) followed with a decline of more than 5 percent.

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