WASHINGTON (dpa-AFX) - Crypto market capitalization rebounded to the flatline after concerns about the health of the U.S. economy triggered a sell-off a day earlier. Weaker-than-expected job openings data from the U.S. boosted confidence in a higher rate cut by the Fed that helped improve crypto market sentiment. The rate cut by Bank of Canada and the dovish comments also boosted crypto market sentiment.
Data released by the U.S. Bureau of Labor Statistics on Wednesday showed the number of job openings drop to 7.67 million in July from a downwardly revised 7.91 million in June. The lowest reading since January 2021 was way below market forecasts of 8.10 million. The potentially greater focus on the employment situation boosted chances of a higher rate cut by the Fed to revive the labor market.
With the Fed's interest rate decision less than a fortnight away, crypto watchers are assigning significant importance to rate cut cues. The CME FedWatch tool currently reveals the likelihood of a 25-basis points cut at 55 percent. According to the tool that tracks the expectations of interest rate traders, only 45 percent expect the Fed to cut rates by 50 basis points in the forthcoming review.
The next milestone in crypto market's assessment about the extent of imminent rate cuts by the Fed is the monthly ISM Services PMI due on Thursday morning. The Institute for Supply Management's assessment of the non-manufacturing activity in the U.S. economy is expected to reveal a reading of 51.1, implying an expansion. The expected reading is albeit lower than 51.4 recorded in the previous month.
Meanwhile, data released just a while ago by the U.S. Department of Labor showed the number of people claiming unemployment benefits in the U.S. decreasing to 227 thousand for the week ended August 31. Markets had expected the reading at 230 thousand versus 231 thousand in the period ended August 24.
Nevertheless, the pivotal data point for the Fed's decision is expected to be Friday's jobs data. Crypto market sentiment is likely to remain muted till then amidst anxiety about whether the additions to non-farm payrolls would rise to 160 thousand from 114 thousand in July and the unemployment rate would indeed edge down to 4.2 percent from 4.3 percent in the previous month.
Amidst crypto market's preoccupation with the Fed's monetary policy outlook and the potential interest rate trajectory, the overall crypto market capitalization is steady at $1.99 trillion.
Bitcoin rallied 0.23 percent overnight to trade at $56,603.37, around 23 percent below the all-time high. Weekly losses have been restricted to 6.2 percent. Gains in 2024 have increased to 33.9 percent.
Ethereum shed 0.32 percent in the past 24 hours to trade at $2,393.40, around 51 percent below the previous peak. Weekly losses are close to 7 percent. Gains in 2024 are less than 5 percent.
With a market capitalization of $1.12 trillion, Bitcoin dominates 56.2 percent of the overall crypto market. Ethereum which enjoys a market cap of $288 billion follows with a market share of 14.5 percent.
Data from Farside Investors on Bitcoin Spot ETF products in the U.S. showed a net outflow of $37 million on Wednesday versus net outflows of $288 million a day earlier. Ether Spot ETF products in the U.S recorded net outflows of $38 million on Wednesday versus outflows of $47 million a day earlier.
4th ranked BNB (BNB) gained 1.7 percent overnight to trade at $505.99. 5th ranked Solana (SOL) rallied 4 percent overnight and is currently trading at $133.57. 7th ranked XRP (XRP) added 0.37 percent overnight to trade at $0.5519. Year-to-date losses have crossed 10 percent. Dogecoin (DOGE), ranked 8th overall has also added 2.2 percent in the past 24 hours to trade at $0.09746. 9th ranked TRON (TRX) gained 0.40 percent overnight to trade at $0.1504. 10th ranked Cardano (ADA) jumped 6.1 percent overnight to trade at $0.3367.
85th ranked SATS (1000SATS) topped overnight gains with a surge of more than 11 percent. 53rd ranked Helium (HNT) followed with overnight gains of more than 8 percent.
74th ranked MANTRA (OM) slipped 5.2 percent overnight to trade at $0.9057. 26th ranked Aptos (APT) followed with losses of 3.8 percent.
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