Summary
- Crypto roundup for Friday portrays modest optimism among traders as firmer U.S. data joins easing geopolitical fears and dovish Fed talks.
- Bitcoin, Gold lack direction after a downbeat day, and the U.S. Dollar struggles to pare intraday loss.
- U.S. UoM Consumer Sentiment Index for October beat expectations, while inflation expectations came in mixed.
- Previous updates suggest consumer spending resumed, Fed talks remain mostly dovish.
- Hamas declares end of war, Trump eyes Middle East visit to spread peace.
- Cryptocurrencies remain pressured on a weekly basis, despite the latest corrective bounce, equities edge higher after a downbeat day.
Crypto Roundup for Friday: Market Mood is Positive
The risk complex remains mildly positive early Friday as upbeat U.S. consumer-centric data raised a glimmer of hope amid a pause in the statistics due to the government shutdown. Also on the positive side is the Gaza ceasefire, dovish statements from the Federal Reserve (Fed) officials, and concerns that the U.S. Bureau of Labor Statistics (BLS) won’t cancel its September Consumer Price Index (CPI) release despite the shutdown. However, U.S. President Donald Trump’s statements, the ongoing Ukraine-Russia war, and indecision among the market players, due to the federal inaction, challenged the risk-on mood.
Against this backdrop, Bitcoin (BTC) and spot Gold (XAU) both lack clear directions while making rounds to $121,800 and $3,970, following a downbeat day. That said, the U.S. Dollar Index (DXY) remains mildly offered while snapping a four-day winning streak at the highest level in two months.
Talking about the data, the preliminary readings of the U.S. University of Michigan’s (UoM) Consumer Sentiment Index (CSI) for October came in at 55.0 versus 54.2 expected and 55.1 prior. Further, the Consumer Expectations Index eased to 51.2 from the 51.7 previous release. More importantly, UoM’s one-year Consumer Inflation Expectations (CIE) eased to 4.6% from 4.7%, but the five-year CIE reprinted the 3.7% figures.
On Thursday, Delta Airlines from the U.S. announced that consumers resumed spending in July after a pause since April and Liberation Day.
Despite the recently firmer U.S. data challenging the Fed’s dovish talks and expectations of more rate cuts, the U.S. Dollar struggles to reverse the intraday loss, the first in five, at the highest level in two months.
Talking about the Fed signals, Governor Michael Barr sounded hawkish on Thursday, saying he does not see tariff spillovers into services inflation, while advocating caution given uncertainty in inflation and jobs. Further, San Francisco Fed President Mary Daly said inflation has eased more than feared and expects further cuts. Meanwhile, New York Fed President John Williams supported more rate cuts this year to help a cooling labor market, while emphasizing the importance of Fed independence amid political pressure.
Elsewhere, U.S. Treasury Secretary Scott Bassent conveyed expectations that India will buy less oil from Russia, citing indirect pressure and keeping geopolitical risks on the table.
On the same line, Trump also proposed a total ban on Chinese airlines from overflying Russia on all U.S. flights. U.S. President also reiterated that he will make permanent cuts to Democratic programs during the shutdown. Additionally, Trump announced plans to visit the Middle East and his intention to push Iran towards peace, while also defending his tariff policies.
Meanwhile, the Hamas leadership claimed a permanent ceasefire and the end of the war, even as global watchers doubt the peace after they exchanged prisoners the next week.
Crypto, Equity Update: Markets Tumble Amid Trump Tariffs
Crypto traders face indecision as major coins stay under pressure after a weak session, despite lacking momentum, while a few are showing early signs of a corrective bounce on Friday morning in New York.
Bitcoin (BTC) and Ethereum (ETH) both struggle to reverse early-day losses, whereas Avalanche (AVAX) holds lower grounds. Further, Ripple (XRP), Solana (SOL), and Dogecoin (DOGE) also plummeted hard. That said, Binance Coin (BNB) struggles after snapping a four-day winning streak. The crypto and equity market plunged massively as U.S. President Donald Trump threatened to impose a 1005 tariff on China.
Notably, the Bitcoin Dominance improves to 58.5%, from 58.3%, but the crypto market capitalization (market cap) eases 0.77% on a day to $4.14 trillion as we write, per the CoinMarketCap data.
While some of the top crypto news are discussed below, more updates like this could be traced to our Coin Bytes.
A stablecoin giant, Tether Group, seeks collaboration with Vietnamese companies to promote local crypto acceptance and fuel expansion. The firm’s Vice President for Global Expansion and important Partnerships, Marco Dal Lago, said on Thursday that Vietnam is one of Tether’s “most promising and strategic markets”.
A corporate crypto analysis from State Street mentioned that institutional investors are becoming increasingly confident about the future of crypto assets, with most expecting their crypto exposure to double within the next three years.
Binance Founder and ex CEO, Changpeng Zhao (also known as CZ), shared a Google security alert warning him of government-backed attackers trying to steal his password. The crypto czar raised concerns that the infamous North Korean Lazarus Group could be behind these increasingly sophisticated attacks.
Also Read: CZ Targeted by Government-Backed Hackers, Suspects North Korean Lazarus Group
The Ethereum Foundation launched the Ethereum Kohaku roadmap, a comprehensive initiative designed to enhance wallet privacy and security across the ecosystem. The ETH firm eyes developing a software development kit (SDK) that will provide strong privacy primitives, in addition to a reference wallet implementation that will target power users.
Read Details: Ethereum Kohaku Roadmap Unveils Privacy-First Wallet Solutions
The latest Chainalysis seizable crypto report mentioned that criminals and their networks control over $75 billion in potentially recoverable crypto assets. The report further states that out of $75 billion, nearly $15 billion is controlled directly by illicit actors, and more than $60 billion is held in downstream wallets that have received large inflows from criminal sources.
More Details: Chainalysis Seizable Crypto Report Reveals $75B in Illicit Assets, Mostly Bitcoin
In the case of U.S. equities, Wall Street begins Friday’s trading on a positive note. That said, Dow Jones rose 0.50% on the day, while the S&P 500 and Nasdaq both posted a 0.30% intraday gain. Notably, the Nasdaq renews its all-time high around 23,120.
On Thursday, all three U.S. benchmark indices closed in the red, though with mild losses. That said, the Dow fell 43.36 points or 0.52% to 46,358.42, while the S&P slid 18.61 points or 0.28% to 6,735.11. That said, the tech-heavy NASDAQ Composite dropped 18.75 points or –0.08% to 23,024.63. Notably, Nvidia hit fresh record highs while cheering the U.S. government’s license to sell chips to the UAE.
Key Asset Moves
- Gold remains indecisive, making rounds to $3,970, after snapping a four-day uptrend the previous day.
- Bitcoin (BTC) licks its wounds, plunging over 12%, reaching $105,000.
- Ethereum (ETH) stays pressured, holding lower grounds near $4,355 as we write.
- U.S. Dollar Index (DXY) retreats from two-month high, mildly offered near 99.30 by press time.
- Wall Street benchmarks trade positively, after a downbeat day, with the Nasdaq reaching a record top.
- WTI Crude Oil hits a fresh five-month low, down 2.65% intraday to $59.85 at the latest.
Risk Catalysts To Watch Out For
Having witnessed an initial reaction to the U.S. data, market players should keep their eyes on developments surrounding the U.S. government shutdown, the Federal Reserve’s policy signals, geopolitical updates about Ukraine and Gaza, and Donald Trump’s tariff and political moves.
As the sentiment is still mixed and the U.S. legislators are on holiday till Tuesday, the ongoing shutdown is likely to stretch. This can allow the U.S. Dollar to hold its weekly gains, potentially challenging upside bias about gold, cryptocurrencies, and equities.
Overall, markets remain on edge, awaiting clearer direction from both data and news.
Also Read: Market Expects 2 More Fed Rate Cuts, Bitcoin and Altcoins to Soar?
