Cryptos Muted As Powell Rules Out Any Preset Course

Cryptocurrencies weakened over the past 24 hours as markets digested Fed Chair Jerome Powell’s forward guidance on monetary policy. Jerome Powell, in his speech on Monday at the Annual meeting of the National Association for Business Economics made it clear that monetary policy would move over time toward a more neutral stance. He however clarified that the Fed was not on any preset course.

The Fed Chair also reiterated that with the risks to achieving the employment and inflation goals roughly in balance, the Fed would continue to make decisions meeting by meeting.

Jerome Powell also attributed the recent rate cut to a growing confidence that, with an appropriate recalibration of the policy stance, strength in the labor market could be maintained with moderate economic growth and inflation moving sustainably down to 2 percent.

The 6-currency Dollar Index has increased to 101.00 versus 100.76 on Monday and 100.42 on Friday.

Overall crypto market capitalization is currently at $2.26 trillion versus $2.27 trillion a day earlier.

Bitcoin edged down 0.01 percent overnight to trade at $64,076.02, around 13 percent below the all-time high. BTC has gained 0.60 percent in the past week while holding on to gains of more than 51 percent in 2024. The original cryptocurrency traded between $64,316.45 and $62,873.62 in the past 24 hours.

Data from Farside Investors on Bitcoin Spot ETF products in the U.S. showed a net inflow of 61 million on Monday as compared with $494 million on Friday.

Ethereum added 0.37 percent in the past 24 hours to trade at $2,643.63, around 46 percent below the previous peak. Weekly losses are close to 0.42 percent. Gains in 2024 have increased to close to 16 percent. Ether traded between $2,657.62 and $2,576.98 in the past 24 hours.

Data from Farside Investors on Ethereum Spot ETF products in the U.S. showed a net outflow of $1 million on Monday versus a net inflow of $58.7 million on Friday.

4th ranked BNB (BNB) added 0.33 percent overnight, limiting weekly losses to 3.75 percent at its current trading price of $580.87.

5th ranked Solana (SOL) added 0.6 percent overnight, lifting weekly gains to 6.2 percent. SOL is currently trading at $156.98.

6th ranked XRP (XRP) has shed 3.1 percent overnight to trade at $0.6292. Amidst weekly gains of 6.9 percent, the cryptocurrency issued by Ripple Labs has rallied 2.3 percent on a year-to-date basis.

8th ranked Dogecoin (DOGE) slipped 2.5 percent overnight to trade at $0.1185.

9th ranked Toncoin (TON) edged up 0.2 percent overnight. TON is currently trading at $5.82.

10th ranked TRON (TRX) added 0.83 percent overnight and 3 percent in the past week. TRX is currently changing hands at $0.1567.

69th ranked Popcat (POPCAT) and 90th ranked EigenLayer (EIGEN) topped with overnight gains of more than 10.5 percent. 50th ranked Bonk (BONK) and 37th ranked dogwifhat (WIF) followed with overnight gains of more than 8 percent.

91st ranked Neo (NEO) is the greatest laggard, shedding close to 7 percent overnight. 94th ranked Ethena (ENA) slipped 5.3 percent followed by 83rd ranked Conflux (CFX) that has declined 4.6 percent in the past 24 hours.

Meanwhile, amidst relief at the Fed’s preferred PCE-data revealing a softening in inflation, digital asset investment products recorded the third consecutive week of inflows. The CoinShares’ Digital Asset Fund Flows Weekly report showed inflows of $1.2 billion during the week ended September 27 as compared with inflows of $321 million during the week ended September 21. Year-to-date flows have increased to $23.7 billion. According to the report, Bitcoin topped flows by asset, iShares ETF topped flows by provider and United States topped flows by country during the past week.
Bitcoin-based products dominated with inflows of $1.1 billion. After five straight weeks of outflows, Ethereum-based products recorded inflows of $86.9 million. Multi-asset products received inflows of $65 million followed by Short Bitcoin products that got inflows of $8.8 million. Solana-based products however recorded outflows of $4.8 million.

More than 80 percent of the cumulative AUM of $92.7 billion is attributed to Bitcoin products that account for an AUM of $74.6 billion. Bitcoin’s dominance of crypto market is much lower, at around 56 percent. AUM of Ethereum products stood at $11.0 billion. Multi-asset portfolios command assets under management of $4.5 billion. An AUM of $1.3 billion is attributed to Solana-based products and $608 million to Binance-based products.

The provider-wise analysis of flows inter alia shows inflows of $594 million to iShares ETF followed by $269 million to Ark 21Shares. Fidelity ETF recorded inflows of $206 million. Bitwise ETF also recorded inflows of $83 million. Outflows of $117 million were recorded from Grayscale Investments.

iShares ETF tops with a cumulative AUM of $25.1 billion implying a share of 27 percent. Though year-to-date outflows are more than $19.5 billion, Grayscale Investments still accounts for an AUM of $21.2 billion, which is 22.9 percent of the cumulative AUM of $92.7 billion. Fidelity commands an AUM of $11.9 billion, followed by ARK 21Shares and 21Shares that have both mobilized assets under management to the tune of $3.3 billion. The top 3 viz iShares, Grayscale Investments and Fidelity account for more than 62.7 percent of the total AUM.

The country-wise analysis shows weekly inflows of $1.2 billion to United States. Switzerland followed with inflows of $84 million. Germany has recorded outflows of more than $20 million followed by Sweden and Brazil that have recorded outflows of $3 million each.

Of the cumulative AUM of $92.7 billion, $70 billion or 75.5 percent is in United States. Switzerland follows with AUM of more than $5.1 billion whereas Canada accounts for an AUM of $4.5 billion. Germany accounts for an AUM of $3.9 billion followed by Sweden with an AUM of $3.0 billion.

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