Summary
- Crypto roundup for Thursday portrays modest optimism among traders as the U.S. government shutdown ends after 43 days.
- Bitcoin posts the first daily gain in three, Gold hits a fresh three-week high before retreating, but the U.S. Dollar drops.
- Positive vibes surrounding government reopen jostle with anxiety ahead of heavy pending data to test the optimists.
- Mixed Fed talks, geopolitical/trade news also contribute to the market’s lack of rally on upbeat news.
- Major crypto coins snap two-day losing streak as overall risk-on mood joins positive news from the industry.
- Wall Street begins Thursday on a negative note, after a mixed Wednesday.
- Risk catalysts and Q3 results from Alibaba, Applied Materials eyed.
Crypto Roundup for Thursday: Market Sentiment Dwindles
The risk profile remains a slight positive, lacking acceptance, early Thursday in New York as traders show a mixed reaction to a bill that ended the historic government shutdown. The move was widely expected after the stopgap funding bill passed the Senate and House. Positive news about data and SNAP benefits also boosted optimism. However, mixed comments from the Federal Reserve, trade updates from China, Europe, and Switzerland, and anxiety about the pending economic data challenged the bulls a bit. Also on the negative side were comments from the White House (WH) Economic Advisor Kevit Hasset.
Amid these plays, Bitcoin (BTC) posts mild gains around $103,100 during its first positive day in three, while the spot Gold (XAU) price snaps four-day uptrend while falling back to $4,190, after hitting a three-week high. Meanwhile, the U.S. Dollar Index (DXY) drops to a two-week low near 99.20, Wall Street benchmarks slid, and the U.S. Treasury bond yields reverse the previous day’s losses.
Trump signed the bill reopening the U.S. government, which will be funded until January 30. He acknowledged the shutdown caused significant damage, estimating the cost at $1.5 trillion.
Recently, the U.S. Department of Agriculture (USDA) announced that full SNAP benefits to American citizens will resume within 24 hours. Further, the White House signals that inflation and employment data for October may not be released, but the September figures will be issued for sure.
Meanwhile, the WH Economic Advisor Hasset cited around 1.5% burden on the Q4 Gross Domestic Product (GDP) due to the shutdown.
Talking about the Federal Reserve (Fed) signals, Boston Fed President Susan Collins said that keeping rates on hold for a while is likely appropriate due to inflation concerns.
Cleveland Fed President Beth Hammack mentioned persistently high inflation and flagged no rate cuts, while San Francisco Fed President Mary Daly said that the risks are in balance, still slightly higher on employment.
Alternatively, Atlanta Fed President Raphael Bostic also commented that the current policy is too restrictive.
Meanwhile, New York Fed President John Williams suggested it won’t be long before the Fed needs to act again.
In the case of the Sino-American trade ties, Chinese Vice Premier He Lifeng expressed optimism about U.S.-China trade relations, though uncertainties remain. The policymaker also stated that both countries have significant potential for cooperation.
In Europe, the Financial Times reported that the EU plans to tighten limits on cheap Chinese parcels, and is working on a draft plan to secure broader tariff relief from the U.S.
Crypto, Equity Update
Major cryptocurrency coins turn positive on Thursday, reversing the previous two-day losses, as traders gain confidence after U.S. policymakers ended the historic shutdown, even with stopgap funding until January 30.
That said, Bitcoin (BTC) and Binance Coin (BNB) post modest intraday gains, while Ripple (XRP) rises 4.0%, and Ethereum (ETH) posts 0.50% loss on the day by press time.
Notably, AB (AB) posted a 32% jump in the last 24 hours, while Quant (QNT) and Zcash (ZEC) both rose around 7.0% each during the said timeframe.
Alternatively, Aerodrome Finance (AERO) slumped 20%, Decred (DCR) slid 12%, and Pump.fun (PUMP) dropped 9% in the last 24 hours.
On a broader front, crypto market capitalization (market cap) slid 1.4% on the day to $3.47 trillion, but the Bitcoin Dominance dropped to 59.1% from 59.5% during the last 24 hours, according to CoinMarketCap data.
That said, some of the top crypto news are as follows, while more updates like this could be traced to our Coin Bytes.
Canary Capital’s fund becomes the first U.S. spot XRP Exchange-Traded Fund (ETF) with a 0.50% management fee to get the US SEC approval. That said, the approval follows an auto-effective Securities and Exchange Commission (SEC) process, with trading starting November 13 under ticker XRPC.
Read Details: Spot XRP ETF Listing Approved: First U.S. Fund Begins Trading on Nasdaq Nov 13
A global payment giant and the issuer of the USDC stablecoin, Circle Group Inc. revealed in its third-quarter (Q3) report that it is exploring a native token for its Arc blockchain, as part of a broader strategy to expand its blockchain infrastructure.
Also Read: Circle Eyes Native Arc Token, Expands Global Payments Network in Q3 Push
JPMorgan Chase has begun deploying its JPM Coin to institutional clients, allowing dollar-denominated transfers on Coinbase’s Base blockchain within seconds. Unlike stablecoins, deposit tokens sit on a bank’s balance sheet and can pass deposit interest directly to holders, preserving both liquidity and yield within the banking system.
More Details: JPMorgan Launches Deposit Token JPM Coin on Base Network: Here’s 5 Things to Know
Australian Signals Directorate (ASD) issued an urgent warning about sophisticated scammers impersonating police officers to steal crypto from unsuspecting victims. The Australian Cyber Security Centre reports that the criminals are specifically using the national ReportCyber platform and submitting fake reports using stolen personal information to create a facade of authenticity prior to contacting victims directly.
Also Read: Scammers Impersonating Police Target Australian Crypto Users in Sophisticated Scheme
U.S. Attorney Jeanine Ferris Pirro announced a New Scam Center Strike Force that will unite the Department of Justice (DOJ), Federal Bureau of Investigation (FBI), and Secret Service against crypto fraud. Notably, Southeast Asian scam compounds have stolen nearly $10 billion from Americans in 2024. That said, the task force has already seized $401 million in crypto, targeting $80 million more.
Read More: U.S. Launches Scam Center Strike Force to Combat $10B Crypto Fraud Epidemic
In the case of U.S. equities, Wall Street portrays a surprise reaction, after a mixed day, as the Dow Jones drops 0.20% after hitting record high the previous day. That said, the S&P 500 slid 0.50% and the Nasdaq Composite both declined more than 1.0% during the initial hour of trading.
On Wednesday, trading started on a firmer note but later trimmed some gains, ending the day mixed. The Nasdaq fell 0.26%, the Dow Industrial Average reached a new record high, rising 0.68%, and the S&P 500 remained flat. Microsoft closed higher after announcing it would integrate OpenAI’s custom AI chip designs into its semiconductor strategy.
Talking about the Q3 earnings, Cisco Systems reported strong results during Wednesday’s after-market publication, whereas Thursday’s pre-market release of Walt Disney’s Q3 outcomes was also strong.
- Gold retreats from a three-week-high, snapping a four-day uptrend while falling to $4,190.
- Bitcoin (BTC) snaps two-day loss, posting mild gains near $103,100 by press time.
- Ethereum (ETH) remains pressured, drops 0.50% to $3,410 as we write.
- U.S. Dollar Index (DXY) hits a two-week low, down 0.30% intraday to 99.25 at the latest.
- Wall Street benchmarks drop, with the Dow Jones modestly down, while the S&P 500 dropped 0.50% and the Nasdaq fell 1.20% on the day.
- WTI Crude Oil rebounds from a three-week low, up 0.90% to $59.00 at the latest.
A Volatile Day Ahead…
With the U.S. government reopening, several U.S. economic data releases are expected to roll out, and updates on pending statistics could keep traders busy on Thursday. This may support risk assets such as equities and cryptocurrencies. That said, gold could also rise further if the USD stays pressured, as Federal Reserve sentiment remains neutral of late.
Overall, Thursday is likely to be a volatile one, mostly on the positive side, and hence, traders should remain cautious.
Also read: Crypto Morning News: Bitcoin Touches 102K as Shutdown Nears End, Gold Rallies on Fed Bets
