WASHINGTON (dpa-AFX) - Cryptocurrencies declined as Fed Chair Jerome Powell hinted at the Fed being in no hurry to cut rates. Massive outflows from Bitcoin Spot ETF products in the U.S. on Thursday also dampened market sentiment. Overall crypto market capitalization dropped to $2.89 trillion, and Bitcoin touched a low of $86,682 in the past 24 hours.
Federal Reserve Chair Jerome Powell on Thursday reiterated that inflation has eased substantially from its peak and was on a sustainable path to the goal of 2 percent. He acknowledged that the labor market has cooled to the point where it was no longer a source of significant inflationary pressures.
However, what spooked market sentiment was his forward guidance on interest rates. Powell remarked that the economy was not sending any signals that needed the Fed to be in a hurry to lower rates. Acknowledging the strength of the economy, he said it gave the Fed the ability to approach decisions carefully.
The Fed Chair's comments sobered rate cut expectations, and the CME FedWatch tool now shows the likelihood of a 25-basis point Fed rate cut in December declining to 58.7 percent from 72.2 percent a day earlier. Expectations of a pause increased to 41.3 percent from 27.8 percent a day earlier.
The six-currency Dollar Index which had touched a high of 107.06 on Thursday is currently at 106.85.
Overall crypto market capitalization is currently at $2.96 trillion.
Bitcoin has slipped 2.2 percent overnight to trade at $89,291.07, around 4 percent below the all-time high. BTC has gained 17.2 percent in the past week, 31.7 percent over the past 30 days and 111 percent in 2024.
Data from Farside Investors showed outflows of $401 million from Bitcoin Spot ETF products in the U.S. on Thursday. The funds had recorded inflows of $510 million a day earlier. Net outflows were previously recorded on November 5.
Fidelity Wise Origin Bitcoin Fund (FBTC) recorded outflows of $179 million followed by Ark 21Shares Bitcoin ETF (ARKB) that witnessed record outflows of $162 million. Bitwise Bitcoin ETF (BITB) also saw record outflows of $114 million. iShares Bitcoin Trust (IBIT) however managed to mobilize inflows of $127 million.
Ethereum slipped 3.7 percent in the past 24 hours to trade at $3,067.60, around 37 percent below the previous peak. Weekly gains are close to 4 percent whereas gains in 2024 are a little more than 34 percent. Ether traded between $3,195.59 and $3,018.01 in the past 24 hours.
Ether Spot ETF products in the U.S. saw outflows of $3 million on Thursday versus inflows of $147 million a day earlier.
Bitcoin's share of the crypto market is currently 59.79 percent. Ether now commands 12.54 percent of the overall crypto market. Stablecoins account for 6.46 percent of the crypto market leaving the residual altcoins with a market share of 21.21 percent.
4th ranked Solana (SOL) slipped 1.7 percent overnight, restricting weekly gains to 4.2 percent. SOL is currently trading at $212.63, around 18 percent below its record high.
5th ranked BNB (BNB) declined 3.4 percent overnight but gained 2 percent in the past week at its current trading price of $613.01. BNB is currently trading 15 percent below the all-time high.
6th ranked Dogecoin (DOGE) dropped 7.4 percent overnight to trade at $0.3645. DOGE is trading 51 percent below the previous peak.
7th ranked XRP (XRP), the cryptocurrency issued by Ripple Labs however resisted the bearish trend amidst a legal victory that could help it in its long-standing dispute with the Securities and Exchange Commission.
Judge Phyllis Hamilton of the United States District Court of the Northern District of California recently ordered that certain class action claims in a lawsuit against Ripple Labs and its chief Brad Garlinghouse be moved to final judgement.
With an overnight rally of 19.7 percent, XRP is the highest-ranking cryptocurrency to trade in the green on an overnight basis. XRP has added 56.7 percent in the past week and 41.9 percent in 2024. The cryptocurrency is currently changing hands at $0.8724, around 77 percent below the all-time high.
9th raked Cardano (ADA) also leaped 16.28 percent overnight to trade at $0.6595. ADA is currently trading 79 percent below the record high till date.
10th ranked TRON (TRX) added 2.1 percent overnight to trade at $ 0.1877. TRX has gained 16.1 percent in the past week. The trading price is 37 percent below the cryptocurrency's all-time high.
7th ranked XRP (XRP) topped overnight gains with a surge of more than 19.7 percent. 73rd ranked Goatseus Maximus (GOAT) also rallied 17.5 percent.
29th ranked dogwifhat (WIF) topped overnight losses with a decline of more than 12 percent. 85th ranked Neiro (NEIRO), 94th ranked ORDI (ORDI) and 96th ranked ApeCoin (APE) have also shed more than 10 percent in the past 24 hours.
Meanwhile in another development, 18 states of the U.S. have sued the Securities and Exchange Commission seeking declaratory and injunctive relief to prevent the SEC from continuing what they claim is an unlawful campaign of regulatory overreach and interference with state sovereignty.
The civil action has been initiated by the states of Kentucky, Nebraska, Tennessee, West Virginia, Iowa, Texas, Mississippi, Montana, Arkansas, Ohio, Kansas, Missouri, Indiana, Utah, Louisiana, South Carolina, Oklahoma, Florida and DeFi Education Fund against the U.S. Securities and Exchange Commission, Gary Gensler, in his official capacity as Chair of the U.S. Securities and Exchange Commission and the other 4 Commissioners of the U.S. Securities and Exchange Commission in their official capacity.
The plaintiffs have argued that the SEC's sweeping assertion of regulatory jurisdiction is untenable and that the SEC's regulatory overreach defies basic principles of federalism and separation of powers. They have also claimed that by attempting to shoehorn digital assets into ill-fitting federal securities laws and inapt disclosure regimes, the SEC is harming the very citizens it purports to protect, by displacing better-suited state laws that have been carefully designed to ensure consumer protection in the digital asset industry.
The plaintiffs have inter alia sought a declaration that a digital asset transaction is not an investment contract under the Securities Act of 1933 or the Exchange Act of 1934 if it does not transfer any stake in any enterprise that the seller or anyone else has an obligation to manage for the asset owner's benefit and share resulting profits. They have also asked the court for a declaration that digital asset platforms that facilitate secondary transactions that lack those characteristics need not register as securities exchanges, dealers, brokers, or clearing agencies under the Securities Act of 1933 or the Exchange Act of 1934.
The development assumes significance amidst rising expectations of a crypto-friendly regulatory regime in the U.S.
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