Summary
- Crypto roundup for Wednesday portrays cautious optimism among traders amid upbeat U.S. data and risk-positive news.
- Bitcoin rebounds from a three-week low, Gold snaps three-day losing streak, while U.S. Dollar and Treasury bond yields stay firmer.
- U.S.-China tariff reduction, hopes of the U.S. government reopening, and positive U.S. data improve the risk profile.
- U.S. ADP Employment Change, ISM Services PMI report upbeat readings for October.
- Crypto traders pare weekly loss, tracing equities, amid developmental industry news.
- Wall Street consolidates the previous day’s heavy loss despite mixed Q3 earnings reports.
- Risk catalysts eyed for clear directions as U.S. shutdown restricts data to watch, Trump’s speech is the key.
Crypto Roundup for Wednesday: Market Sentiment Improves
The risk profile improves early Wednesday, after facing a heavy pessimism the previous day, as positive U.S. jobs and activity data join upbeat news surrounding the U.S. shutdown, Sino-American trade ties, and Fed bias.
Against this backdrop, Bitcoin (BTC) snaps two-day losing streak while bouncing off its lowest in three weeks to $103,100, while spot Gold (XAU) posts the first daily gain in three around $3,970 by press time.
Notably, the U.S. Dollar Index (DXY) remains firmer for the fifth consecutive day, reaching the highest level since late May, whereas the U.S. 30-year and 10-year Treasury bond yields reverse the previous day’s pullback from multi-week tops.
Early in the day, U.S. ADP Employment Change for October rose to 42K, versus 32K market forecasts and -39K previous readings, pushing back the previous fears about the job conditions. Following that, the ISM Services PMI for October also rose past 50.8 expected and 50.0 prior figures to 52.4, hitting an eight-month high.
Even if these figures strengthen the market’s latest fears about the Federal Reserve (Fed) rate inaction during December and fuel the U.S. Dollar and yields, the market’s risk profile also improved amid receding fears about the employment and activity conditions despite the shutdown. Adding to the positive mood were news suggesting a sooner end to the historical U.S. government closure and recent positives about the U.S.-China trade ties.
That said, Beijing announced tariff adjustments, suspending 24% U.S. tariffs and maintaining 10% for a year, while halting additional duties on some U.S. imports from November 10.
However, Chinese Premier Li’s also reaffirmed Beijing’s stance as a defender of multilateral trade amid rising global tariffs, raising bar for trade optimism.
Elsewhere, U.S. government shutdown now stretches to the longest in history, allowing some analysts to expect earlier end to the lackluster public affairs in Washington. The news gained support from news suggesting the U.S. Democratic policymakers’ readiness to meet Donald Trump and negotiate an end to the shutdown. On the same line is Trump’s rising disapproval rating and reports from the Wall Street Journal (WSJ) suggesting Senate optimism about a deal.
Meanwhile, the New York Times reported that the Trump administration is considering military action against Venezuela and potential seizures of its oil fields, which in turn challenged sentiment on Tuesday. On the same line, South Korean intelligence warned that North Korea may be close to conducting a nuclear test.
Crypto, Equity Update
The cryptocurrency market witnessed a corrective bounce following a two-day slump, backed by an improvement in the overall risk profile.
Bitcoin (BTC) bounces back after a brief dip below $100,000, up over 1.0% intraday by press time, while Ethereum (ETH) also traces the crypto major with more than 1.0% daily rebound. Notably, Binance Coin (BNB) and Ripple (XRP) both gained around 2.0% on the day, while Aster (ASTER) jumped 14% and Zcash (ZEC) rallied 13% in the last 24 hours.
Alternatively, Dash (DASH) bucks the trend with over 10% daily slump, snapping its five-day winning streak while extending pullback from the January 2022 high marked the previous day.
On a broader front, crypto market capitalization posts a mild decline of 0.65% to $3.42 trillion in the last 24 hours, but the Bitcoin Dominance remains unchanged near 60.1% during the said timeframe, 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.
Global crypto leader nation El Salvador begins securing official records on the Bitcoin Blockchain, starting with CUBO+ graduation certificates. The tech-savvy nation highlights a sharp reduction in data use while eyeing blockchain use for all government records and deepening its crypto strategy.
Read Details: El Salvador Expands Bitcoin Use, Begins Securing Public Records on Bitcoin Blockchain
Amid growing distrust on technology usage, due to the latest scams, Fetch.ai and Secret Network collaborated to launch a confidential AI framework that will secure medical imaging data. Details suggest that the system runs diagnostic models inside trusted hardware environments, keeping patient data secure.
Also Read: Fetch.ai, Secret Network Partner to Protect Diagnostic Imaging Data With Confidential Computing
The U.S. Treasury Department imposed sanctions on eight individuals and two associated firms from North Korea for their central role in a worldwide crypto laundering scheme. The news also quotes Under Secretary John K. Hurley saying, “(These actors) directly threaten U.S. and global security” by generating revenue for Pyongyang’s nuclear weapons program through stolen digital assets.
More Here: U.S. Treasury Sanctions North Korean Bankers in Global Crypto Laundering Crackdown
ZKsync Founder Alex Gluchowski unveils plan to tie $ZK token value directly to network usage through buybacks, burns, and staking rewards. The model is now in the hands of the community for governance discussion and improvement. A potentially new way for Layer-2 networks can bring value to users, capture and distribute value.
For More: ZKsync Proposal Aims to Transform $ZK Governance Token into Revenue-Powered Asset
Talking about the equities, Wall Street portrays the traders’ optimism, after a downbeat day, as Dow Jones, S&P 500, and the Nasdaq Composite all three post mild gains to pare the previous day’s losses during the initial hour of trading.
That said, Tuesday’s after-market results from Advanced Micro Devices (AMD) also boosted confidence, as the company beat third-quarter (Q3) estimates with strong revenue and profit guidance. However, a downbeat report from McDonald’s tests the latest optimism, especially ahead of the after-market Q3 results from Applovin and Qualcomm.
On Tuesday, U.S. equity benchmarks portrayed a notable slump, with the NASDAQ down 2.04%, the S&P 500 losing 1.17%, and the Dow Jones Industrial Average dropping 0.53%.
Key Asset Moves
- Gold snaps three-day downtrend, posting mild gains near $3,970 at the latest.
- Bitcoin (BTC) rebounds from a three-week low, up over 1.0% to $103,100 by press time.
- Ethereum (ETH) gains above 1.0%, tracing BTC while stalling two-day losing streak by rising to $3,350 as we write.
- U.S. Dollar Index (DXY) jumps, reaching the highest since late May before retreating to 100.20 by press time.
- Wall Street benchmarks post mild gains, with the Dow Jones, the S&P 500, and the Nasdaq all three rising between 0.30% and 0.50% on the day.
- WTI Crude Oil drops, keeping the previous day’s fall near $60.20 as we write.
An Active Day Ahead…
Having witnessed an initial market reaction to the U.S. data, trade news, and Q3 earnings, market players may seek details to defend the latest cautious optimism. This highlights headlines surrounding U.S. President Donald Trump’s reaction to China updates, his geopolitical moves, and an action to improve approval ratings. Notably, Trump is up for a speech at 01:00 PM Eastern Time (ET) as Democratic leaders are said to meet the national leader and end the historical shutdown.
Meanwhile, news surrounding the Middle East tensions, nuclear testing, and Fed bias will also be important to watch for clear directions.
Should the reassessment keep the risk profile upbeat, the U.S. Dollar may witness a pullback, which in turn can add strength to Wednesday’s recovery in risk assets like cryptocurrencies and equities, as well as favor gold prices. However, the crypto roundup appears to be dull as long as the U.S. shutdown restricts key data to determine the Fed’s next moves.
