WASHINGTON (dpa-AFX) - Sentiment in the cryptocurrency market remains grim ahead of the release of the monthly jobs data from the U.S.
The U.S. Bureau of Labor Statistics is expected to reveal on Friday morning, an addition of 170 thousand to non-farm payrolls in the month of January, a decline from the 256 thousand recorded in the previous month. The unemployment rate is expected to remain steady at 4.1 percent. The average hourly earnings on a month-on-month basis are expected to be steady at 0.3 percent. On a year-on-year basis, the average hourly earnings are seen declining to 3.8 percent from the previous month's reading of 3.9 percent.
The Federal Open Markets Committee which is tasked with achieving maximum employment and inflation at the rate of 2 percent over the longer run has consistently reiterated that the risks to achieving its employment and inflation goals are roughly in balance. Given the uncertain economic outlook, the FOMC has time and reiterated that it is attentive to the risks to both sides of its dual mandate.
The monthly jobs data for January due on Friday therefore assume great significance. Consumer price inflation readings for January are due on February 12 whereas the PCE-based inflation readings are due on February 28 only.
Market expectations of a Fed rate cut in March are slim at 14.5 percent, going by the CME FedWatch tool. Only a major distress in the labor market is expected to goad the Fed to tone down its hawkish stance. With no major deterioration anticipated in the unemployment rate, hopes of a rate cut from the Fed are distant, which is weighing on cryptocurrency prices.
Bitcoin's tepid performance vis-a-vis the rally in gold also weighed on crypto market sentiment. Gold futures (for April settlement) is currently trading at $2891.11, implying an overnight rally of 0.50 percent and year-to-date surge of 9.46 percent. Bitcoin has on the contrary slipped 1.2 percent overnight and its year-to-date gains are also lower at 4.57 percent.
Amidst the lackluster trading in the crypto market, overall capitalization has fallen to $3.19 trillion, recording an overnight decline of more than a percent. Meme category market capitalization dropped 2.84 percent overnight to $70 billion whereas the AI & Big data category declined 2.6 percent overnight to $33 billion. The DeFi category also saw market capitalization decline 0.43 percent in the past 24 hours to $126 billion.
Only five cryptocurrencies among the top 100 viz, 68th ranked Flare (FLR), 28th ranked Ondo (ONDO), 25th ranked MANTRA (OM), 29th ranked Monero (XMR) and 83rd ranked Maker (MKR) have gained more than a percent in the past 24 hours. FLR rallied 7.2 percent followed by ONDO that added 3.2 percent overnight.
Only two cryptocurrencies among the top 100 viz 25th ranked MANTRA (OM) and 95th ranked Tether Gold (XAUt) have gained more than one percent in the past week. OM rallied 7.4 percent whereas XAUt gained 3.4 percent.
Bitcoin dropped 1.2 percent overnight to trade at $97,666.44, around 10 percent below the all-time high. BTC has lost 6.8 percent in the past week but is holding on to gains of 3.2 percent over the past 30 days. Bitcoin traded between $99,168.61 and $95,707.35 in the past 24 hours.
Data from Farside Investors showed that Bitcoin Spot ETF products in the U.S. recorded outflows of $140 million on Thursday versus inflows of $66 million on Wednesday.
Ethereum has slipped 2 percent in the past 24 hours to trade at $2,753.79, around 44 percent below the previous peak recorded in November 2021. Weekly losses are a little more than 17 percent. Ether traded between $2,808.68 and $2,662.45 in the past 24 hours.
Latest data revealed that inflows to Ethereum Spot ETF products in the U.S. dropped to $11 million on Thursday from $18 million on Wednesday.
4th ranked XRP (XRP) declined 1.2 percent overnight to trade at $2.41, around 37 percent below the all-time high touched in January 2018. The cryptocurrency's weekly losses exceed 22 percent.
The price of 5th ranked Solana (SOL) decreased 0.67 percent overnight. With weekly losses of close to 17 percent, SOL is currently trading at $198.23, around 33 percent below its record high on January 19, 2025.
6th ranked BNB (BNB), the highest-ranking cryptocurrency to trade with overnight gains added 1.2 percent, limiting losses in the past week to 14.4 percent. BNB is currently trading at a price of $584.02 which is 26 percent below the all-time high touched on December 4, 2024.
8th ranked Dogecoin (DOGE) dropped 2.54 percent overnight to trade at $0.2543. Having shed 23.2 percent in the past week, DOGE is trading 66 percent below the previous peak scaled in May 2021.
9th ranked Cardano (ADA) erased 2.4 percent overnight to trade at $0.7335. ADA is currently trading 76 percent below the record high touched in September 2021.
10th ranked TRON (TRX) declined 0.65 percent overnight to trade at $ 0.2285. TRX has shed 10.2 percent in the past week. The trading price is 48 percent below the cryptocurrency's all-time high recorded on December 4, 2024.
84th ranked Berachain (BERA) topped overnight losses with a decline of 16.5 percent. 39th ranked Bittensor (TAO) followed with losses of 8.8 percent.
79th ranked Onyxcoin (XCN), 14th ranked Sui (SUI), 98th ranked Pyth Network (PYTH) and 97th ranked Pudgy Penguins (PENGU), all erased more than 6 percent in the past 24 hours.
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