Crypto Roundup for Monday: Cautious Optimism Prevails Ahead of FOMC
Market sentiment remains modestly positive early Monday morning in New York as traders prepare for Wednesday’s Federal Open Market Committee (FOMC) interest rate decision, with mostly confirmed 0.25% cut to the benchmark interest rate. Notably, a lack of major data and news, apart from the early-day updates about China, also contributed to the trading inaction, as well as defending the previous optimism.
Amid these plays, Bitcoin (BTC) extends weekend recovery to $91,000, while the spot gold (XAU) price stays within a six-day trading range, around $4,200 by press time. Meanwhile, the U.S. Dollar Index (DXY) remains sidelined for the third straight day, near a five-week low, as it seesaws near 99.00 at the latest.
White House Economic Advisor Kevin Hassett, the frontrunner for the next Federal Reserve (Fed) Chairman position, said on the CNBC interview that they should continue to get the rate down some. His comments add to the already high expectations of witnessing lower rates from the U.S. central bank. However, the traders seek validation from Wednesday’s FOMC and hence reacted with fewer moves.
Elsewhere, French President Emmanuel Macron threatened heavy China tariffs and raised trade war fears, but the Eurozone ties with Beijing give less credence to such a warning from a single nation within the bloc.
On a positive side, U.S. President Donald Trump and Canadian Prime Minister Mark Carney looked cordial during a pre-World Cup event, and Trump also expressed optimism about restarting the U.S.-Canada trade talks.
Furthermore, US Treasury Secretary Scott Bessent announced a positive call with Chinese Vice President He Lifeng, favoring trade optimism.
Alternatively, the European Union (EU) and the Group of Seven (G7) countries are allegedly considering a complete ban on Russia’s access to maritime services to disrupt its oil exports, flagging fears of more geopolitical tensions and challenging the risk assets like equities and cryptocurrencies.
Meanwhile, China reported a stellar jump in exports, and the Chicago Mercantile Exchange’s (CME) FedWatch Tool portrays an 89.6% chance of the rate cut in December, versus a 10.4% chance of no rate cut, and favors modest optimism among traders.
Crypto, Equity Update
Major cryptocurrency coins extend the weekend recovery, despite a lackluster market, mostly backed by the dovish Fed bets.
Bitcoin (BTC) gains 1.0%, while Ethereum (ETH) posts over 2.0% intraday gain. That said, Ripple (XRP) and Binance Coin (BNB) gain around 2.0% each, while Solana (SOL) rises 3.0% intraday by press time.
Notably, Canton (CC) rallied almost 18.0% in the last 24 hours to gain the buyer’s attention, whereas MemeCore (M) dropped 2.0% to attract the sellers.
On a broader front, crypto market capitalization (market cap) rose 2.8% on the day to $3.12 trillion, while the Bitcoin Dominance remains mostly static around 58.5% 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 News section.
Michael Saylor-led Strategy bought 10,624 Bitcoin in its latest purchase, boosting the total BTC reserves to 660,624. This development raised doubts about the previous concerns that Strategy is rethinking its Bitcoin Treasury plan.
Italy’s market regulator Consob warned Virtual Asset Service Providers (VASPs) by stressing that the VASPs registered with the “Organismo Agenti e Mediatori” will only be allowed to operate until 30 December 2025.
Also Read: Italy Warns VASPs to Meet MiCA Rules or Exit Market by Year-End 2025
Talking about the U.S. equities, Wall Street begins Monday trading on mixed footing as Dow Jones and S&P 500 are both posting mild losses, but the tech-heavy Nasdaq remains on a positive side, despite lacking the upside momentum. That said, prices of Oracle and Broadcom seem to defend the Nasdaq optimists.
On Friday, Wall Street closed with modest gains as the Fed inflation data flashed mixed reports and chatter surrounding the Netflix-Warner Bros. merger hit a roadblock with President Trump signalling his potential involvement in the antitrust review of the $72 billion deal.
Recently, Paramount Skydance (PSKY) also tried luring the Warner Bros Discovery (WBD) shareholders with an all-cash tender offer of $30 per share.
Meanwhile, IBM is nearing an $11 billion deal to acquire Confluent, which currently has an $8 billion market cap.
- Gold remains range-bound, staying within a six-day trading range surrounding $4,200 by the press time.
- Bitcoin (BTC) posts a two-day winning streak, up nearly 1.0% intraday to $91,000 at the latest.
- Ethereum (ETH) rises 2.0%, tracing the BTC but with more vigor, by rising to $3,135 as we write.
- U.S. Dollar Index (DXY) dribbles, lacking clear direction around 99.00 at the latest
- U.S. equity benchmarks trade mixed, as Dow Jones and S&P 500 both post mild losses, but the Nasdaq is modestly up intraday, by press time.
- WTI Crude Oil snaps a three-day uptrend, falling over 1.0% to $59.30 as we write.
Nothing major ahead
Considering Monday’s light economic calendar and thin news flow, coupled with the market’s cautious mood ahead of Wednesday’s FOMC, the financial market performance is likely to remain lackluster. However, news surrounding the U.S.-China trade ties, the Ukraine-Russia peace deal, and updates surrounding the U.S. technology companies might entertain the momentum traders.
With this, the U.S. Dollar may face downward pressure due to the dovish Fed bias, and can potentially lift equities and cryptocurrencies. Gold could benefit from the market uncertainty, while other major commodities may trade mixed, reacting to any new risk-related news.
Also read: Cryptocurrency Weekly Price Prediction: BTC, XRP Pull Back, while ETH Gains; All Eyes on FOMC!
