WASHINGTON (dpa-AFX) - An overwhelming expectation of a rate cut by the Fed next week bolstered sentiment for digital assets lifting cryptocurrency market capitalization. Rate cut hopes were renewed following CPI data from the U.S. that matched forecasts.
Reports of crypto wallets connected to the Trump family-supported World Liberty Financial project purchasing several altcoins also boosted market sentiment.
Data released by the U.S. Bureau of Labor Statistics on Wednesday showed headline annual inflation rising as expected to 2.7 percent in November from 2.6 percent in October. The core component thereof also remained steady at the 3.3 percent in line with expectations. Inflation on a month-on-month basis edged up to 0.3 percent from 0.2 percent prevailing since July matching forecasts. The core component thereof also remained steady at the 0.3 percent level that markets had anticipated.
With no negative surprises on the CPI front, market expectations of a quarter-point Fed rate cut in December that would reduce the Fed's target rate to 4.25-4.5 percent firmed up to 98.6 percent from 88.9 percent a day earlier and 71.0 percent a week earlier.
Overall crypto market capitalization increased close to 3 percent overnight to the level of $3.63 trillion.
Meme category market capitalization gained 2.1 percent overnight to $123 billion implying a market share of 3.4 percent.
The AI & Big Data category recorded an overnight addition of 4.3 percent, lifting market capitalization to $63.2 billion or 1.74 percent of the overall crypto market.
Market capitalization of the not-so-volatile stablecoins increased 0.90 percent to $210.2 billion or 5.78 percent of the overall crypto market.
Data released just a while ago that showed factory gate prices in the U.S. increased 0.4 percent month-over-month in November limited gains for cryptocurrencies. The level is higher than the upwardly revised 0.3 percent in October and twice the market forecast of 0.2 percent.
Bitcoin has gained 2.7 percent overnight to trade at $101,389.88, around 2 percent below the all-time high of $103,900 touched on December 5. BTC has slipped 1.2 percent in the past week, limiting gains to 17.7 percent over the past 30 days. BTC is holding on to gains of more than 139 percent in 2024.
Amidst the tussle between bulls and bears that saw Bitcoin trading between $101,913.36 and $98,434.12 in the past 24 hours, the leading cryptocurrency also maintained the 7th rank in the overall ranking of all assets according to market capitalization published by companiesmarketcap.com.
Data from Farside Investors showed inflows of $223 million to Bitcoin Spot ETF products in the U.S. on Wednesday. Inflows were $439 million a day earlier.
Ethereum gained 6.5 percent in the past 24 hours to trade at $3,973.55, around 19 percent below the previous peak recorded in November 2021. Gains in 2024 are a little more than 74 percent. Ether traded between $3,978.62 and $3,719.55 in the past 24 hours.
Ether Spot ETF products in the U.S. saw inflows of $102 million versus $306 million a day earlier.
4th ranked XRP (XRP) has rallied 2 percent overnight to trade at $2.43, around 37 percent below the all-time high touched in January 2018. Gains exceed 294 percent on a year-to-date basis.
Solana (SOL) ranked 5th overall surged 2.8 percent overnight. With year-to-date gains of 129 percent, SOL is currently trading at $232.29, around 12 percent below its record high on November 23.
6th ranked BNB (BNB) rallied 4 percent overnight. At its current trading price of $716.12, BNB is currently trading 10 percent below the all-time high touched on December 4.
7th ranked Dogecoin (DOGE) rallied 2.7 percent overnight to trade at $0.4155. Having added more than 364 percent in 2024, DOGE is trading 44 percent below the previous peak scaled in May 2021.
9th ranked Cardano (ADA) rallied 5.6 percent overnight to trade at $1.14. ADA is currently trading 63 percent below the record high touched in September 2021.
TRON (TRX) gained 8.5 percent overnight to trade at $ 0.3017. TRX has slipped 9.5 percent in the past week. The trading price is 32 percent below the cryptocurrency's all-time high recorded on December 4.
28th ranked Aave (AAVE) topped overnight gains with a surge of more than 30 percent. 16th ranked Sui (SUI) rallied more than 23 percent followed by Chainlink (LINK) that added 18.6 percent overnight.
91st ranked XDC Network (XDC) topped overnight losses with a decline of 10.2 percent. 90th ranked Curve DAO Token (CRV), 83rd ranked Movement (MOVE) and 79th ranked Raydium (RAY) are the only other cryptocurrencies among the top 100 to trade with overnight losses of more than a percent.
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