Summary
- Crypto roundup for Thursday highlights the market’s positive sentiment amid upbeat U.S. data and firmer Treasury bond yields.
- Bitcoin holds gains near the monthly high, Gold extends pullback from ATH, while the U.S. Dollar stretches recovery.
- Upbeat U.S. Jobless Claims and Philadelphia Fed Manufacturing Survey magnified the market’s post-Fed optimism.
- U.S. SEC’s shift to easy listing rules for spot crypto ETFs bolsters crypto market optimism, backed by other upbeat industry news.
- Equities resume run-up toward record high, after a mixed daily performance, as traders cheer upbeat U.S. data, ignore bond rout.
Crypto Roundup for Thursday: Bond Yields Fail To Stop Optimists!
The risk complex remains upbeat on Thursday as market players cheer the U.S. Federal Reserve’s (Fed) interest rate cuts and the latest upbeat data. In doing so, the risk-takers ignore rising bond yields as Treasury market players consider the Fed’s action as hawkish.
Against this backdrop, Bitcoin (BTC) remains firmer at the monthly high surrounding $117,800, hit earlier in the day, while the spot Gold (XAU) extends the previous day’s pullback from the all-time high (ATH) to $3,640. Meanwhile, the U.S. Dollar Index (DXY) also remains firmer for the second consecutive day, after hitting the lowest level since early 2022, up 0.40% intraday to 97.40 as we write.
U.S. Treasury bond yields rose across all maturities, extending the post-Fed recovery in longer-dated bond coupons, while also portraying a reversal from a multi-month low on the short-term bond yields, as financial market traders consider the U.S. central bank’s rate cut as hawkish.
The reason could be linked to Federal Reserve Chairman Jerome Powell’s press conference as he termed the rate cut as a “risk management” decision and emphasized that future policy would remain data-dependent. Powell also downplayed revisions to employment data and pointed to immigration as a key driver in changes to the labor market, rather than job market weakness.
Elsewhere, upbeat U.S. data also favored the USD’s rebound and helped the Wall Street optimists. That said, U.S. Initial Jobless Claims for the week ended on September 16 dropped to a three-week low of 231K versus 241K expected and 264K prior (revised). Notably, the Continuing Jobless Claims also eased to 1.92 million, from a revised prior of 1.927 million, compared to the analysts’ estimation of 1.95 million.
Also positive for the U.S. Dollar was Philadelphia Fed Manufacturing Survey results for September. The regional manufacturing gauge jumped to the highest since January, to 23.2, from -0.3, versus the market expectations of 2.3.
Elsewhere, the political blame game starts after Bloomberg revealed that U.S. Treasury Secretary Scott Bassent had listed two separate homes as his “principal residence” when securing mortgages in 2007. This appears to be the same situation for which U.S. President Donald Trump fired Fed Governor Lisa Cook, but failed.
Crypto, Equity Update
The cryptocurrency market remains mostly upbeat on Thursday, cheering the U.S. Federal Reserve’s (Fed) rate cut and news from the U.S. Securities and Exchange Commission (SEC).
That said, prices of major coins like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Solana (SOL) all remained firmer while the BTC dominance grew 1.93% to 57% by press time, per CoinMarketCap.
That said, some of the top crypto news are as follows, while more updates like this could be traced to our Coin Bytes.
The U.S. SEC approved new rules allowing exchanges like the New York Stock Exchange (NYSE) and Nasdaq to list spot cryptocurrency exchange-traded funds (ETFs) under simplified standards, cutting approval times significantly and boosting market confidence.
Read More: SEC Greenlights Crypto ETF Generic Listing Standards in Landmark Vote
The global payment processor, MoneyGram, unveiled a next-generation stablecoin app to facilitate the USDC transactions, a big step towards crypto usage in remittance. The application will first be launched in Columbia.
Check Details: MoneyGram Stablecoin App Launches to Revolutionize Remittances
The U.S. Federal Bureau of Investigation (FBI) is requesting victims of fraud by SafeMoon’s Chief Executive Officer (CEO), Braden John Karony, to complete a confidential questionnaire. This will assist the investigation and help victims potentially recover their losses following Karony’s conviction.
Also Read: FBI Seeks SafeMoon Victims for Restitution After Founder’s Conviction
Talking about the U.S. equities, Wall Street benchmarks post mild gains after a mixed daily performance.
Dow Jones prints mild gains, S&P 500 rises 0.60% intraday, while Nasdaq 100 jumps over 1.00% on a day, resuming run-up towards the all-time high after retreating from record tops early in the week.
Upbeat performance of the U.S. shares could be linked to a jump in the technology shares led by Intel, up 25% at open, as Nvidia pledged a $5.0 billion stock investment.
It’s worth noting, however, that the equity buyers seem to be ignoring a run-up in the U.S. Treasury bond yields and cautious mood ahead of today’s after-market quarterly earnings from the FedEx Corporation (FDX).
- Gold eases to $3,640, extending Wednesday’s pullback from an all-time high.
- Bitcoin (BTC) stays firmer, up more than 1.0% intraday to around $117,800, the highest level in a month.
- Ethereum (ETH) edges higher, mildly bid near $4,610 after snapping a four-day losing streak the previous day.
- U.S. Dollar Index (DXY) keeps bounce off a multi-year low, up 0.40% intraday near 97.40.
- Wall Street benchmarks rise, with mildly bid Dow Jones and S&P 500 lagging over 1.0% intraday gains of Nasdaq.
- WTI Crude Oil stays pressured, down for the second consecutive day to $63.90 as we write.
Eyes on risk assets…
With a notable recovery in the U.S. Treasury bond yields, equities, and cryptocurrencies, especially amid a lack of major data/events, market players should remain cautious while keeping tabs on the risk assets.
Should the bond yields rise further, they could bolster the U.S. Dollar and may challenge the equities and cryptocurrencies, while exerting additional downside pressure on the gold price.
That said, geopolitical news, the U.S. trade deal updates, and the central bankers’ speeches should also be eyed closely for fresh impulse.
Also read: Breaking News: Fed Chair Powell Cuts Interest Rate by 25 Basis Point, Bitcoin Consolidates
