WASHINGTON (dpa-AFX) - Crypto markets rallied overnight amidst concerns about the labor market raised by a Fed official. The concurrent easing in bond yields eclipsed the dollar's overnight surge and helped cryptocurrency market capitalization record a gain of more than a percent in the past 24 hours.
Raphael Bostic, President and Chief Executive Officer of the Federal Reserve Bank of Atlanta on Wednesday placed on record his concerns about potential vulnerabilities in the labor market.
Though Bostic viewed the employment outlook as stable, he acknowledged that signs of slowing are accumulating. Relying on data from the U.S. Bureau of Labor Statistics. he cited the lower probabilities for unemployed workers to find jobs and the longer average stint of unemployment as an indication of clear softening in the labor market. He also pointed out that the 'quits rate,' the percentage of all workers who voluntarily leave a job in a given month, has declined to levels last seen in 2015, excluding the pandemic years.
He also raised concerns about the narrowing employment growth. Three key sectors viz healthcare and social assistance, leisure and hospitality, and government accounted for roughly three-quarters of job growth in the past year versus about 45 percent in the pre-pandemic years.
Bostic's focus on determining whether the labor market may be cooling more dramatically than feared provided the positive catalyst that crypto markets had been waiting for. With crypto markets wanting more of pro-crypto actions from the Trump administration, hints of any potential relief on the monetary policy front provided a much-needed boost to crypto prices.
Ten-year bond yields in the U.S. decreased 0.38 percent whereas the 5-year tenor saw a decline of 0.25 percent. Yields in the longer tenor of 30 years also saw an easing of 0.34 percent. Ten-year bond yields eased in Germany, France, Japan and Canada as well. A decline in general interest rates bodes well for cryptocurrencies that are typically non-interest bearing.
Despite the quarter-percent surge in the six-currency Dollar Index to 106.64, the overall crypto market capitalization rallied 1.4 percent overnight to $3.25 trillion. Bullish momentum reverberated across the crypto spectrum, with AI & Big data category adding 7.5 percent, DeFi gaining 3.1 percent and memes rallying 1.5 percent during the past 24 hours. Trading volume over the 24-hour period increased 19 percent to $98 billion.
Crypto market sentiment which had deepened in to a state of fear amidst fading Fed rate cut hopes has recovered and now reflects as neutral state. The CMC Fear and Greed Index, a proprietary tool developed by CoinMarketCap to measure the emotional state of the market has increased to 42 (Neutral) from 40 (Neutral) a day ago and 38 (Fear) a week ago.
BTC has rallied 1.2 percent overnight and 1.9 percent in the past week to trade at $98,559.05, around 10 percent below the all-time high. BTC is however grappling with losses of 6.4 percent over the past 30 days. The leading cryptocurrency touched a high of $98,907.89 and a low of $96,874.82 in the past 24 hours.
Data from Farside Investors showed that Bitcoin Spot ETF products in the U.S. witnessed outflows of $365 million on Thursday as compared with outflows of $64 million a day earlier. iShares Bitcoin Trust ETF (IBIT) topped with outflows of $112 million.
Ethereum rallied 1.6 percent in the past 24 hours and 3.8 percent in the past week to trade at $2,790.08, around 43 percent below the previous peak recorded in November 2021. Ether traded between $2,829.12 and $2,708.22 in the past 24 hours.
Ethereum Spot ETF products in the U.S. witnessed outflows of $13 million on Thursday versus inflows of $19 million on Wednesday.
3rd ranked XRP (XRP) slipped 1.5 percent overnight to trade at $2.64, around 31 percent below the all-time high touched in January 2018. The cryptocurrency's weekly losses exceed 2.1 percent.
BNB (BNB) ranked 5th overall recorded an overnight surge of 1.9 percent. At its current trading price of $662.03, BNB is trading 17 percent below the all-time high. BNB has however lost half a percent in the past week.
Amidst an overnight gain of 1.3 percent, Solana (SOL) traded at the 6th rank overall. With weekly losses of more than 11 percent, SOL is currently trading at $176.98, around 40 percent below its record high.
8th ranked Dogecoin (DOGE) edged down 0.08 percent overnight to trade at $0.2552. Having shed 5.4 percent in the past week, DOGE is trading 65 percent below the previous peak scaled in May 2021.
9th ranked Cardano (ADA) gained 1 percent overnight to trade at $0.7997. ADA is currently trading 74 percent below the record high touched in September 2021.
10th ranked TRON (TRX) added 3.8 percent overnight to trade at $ 0.2485. TRX has gained more than 7.4 percent in the past week. The trading price is 44 percent below the cryptocurrency's all-time high recorded on December 4, 2024.
Among the top 100 cryptocurrencies, 72nd ranked Story (IP) topped overnight gains with a surge of more than 50 percent. 34th ranked Aptos (APT) topped overnight losses with a decline of 3.1 percent.
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