Summary
- Crypto roundup for Monday highlights cautious optimism among traders as they brace for FOMC, amid a dovish outlook.
- Downbeat U.S. Empire State Manufacturing Index contrasts with U.S.-China trade deal developments to trouble traders.
- Geopolitics remains dicey, joining the light economic calendar to test momentum.
- Crypto traders pare previous gains despite upbeat new developments.
- U.S. equity benchmarks stay firmer, with the S&P 500 and Nasdaq hitting record highs.
Crypto Roundup for Monday: Mixed Momentum Prevails!
Crypto market sentiment remains dicey early Monday in New York as news about the U.S.-China trade deal framework a contrasts with cautious mood ahead of Wednesday’s Federal Open Market Committee (FOMC) meeting. Adding to the mix were headlines surrounding Russia, U.S. President Donald Trump, and China’s stimulus.
Against this backdrop, Bitcoin (BTC) prints a three-day losing streak, down 0.50% intraday to $114,700, while the spot Gold (XAU) rises to $3,658, challenging a five-day trading range after hitting a record high. Meanwhile, the U.S. Dollar Index (DXY) remains under pressure after posting a weekly loss, down 0.15% on a day to 97.45 as we write.
U.S. Treasury Secretary Scott Bassent announced the U.S.-China framework deal on TikTok. The issue was critical to the policymakers as policymakers from China pushed for the Beijing summit but didn’t initially relinquish control over the famous company, as demanded by Washington. This could help ease the trade war fears as Bassent also mentioned that U.S. President Donald Trump and Chinese President Xi Jinping will speak on Friday.
Elsewhere, global rating agency Fitch downgraded France’s credit rating to the country’s record low of A+ from AA- while citing political crisis and ballooning debt, per Reuters.
Meanwhile, the U.S. Empire State Manufacturing Index for September hit a three-month low of -8.7, versus the market forecasts of 4.3 and the previous readings of 11.9. Notably, most of the recent U.S. data highlights sticky inflation, employment problems, and slower activity, facilitating the dovish Fed bias and weighing on the U.S. Dollar.
Elsewhere, President Trump signaled his willingness to impose new sanctions on Russia and urged Europe to toughen its stance, calling on European nations to avoid purchasing Russian oil and to align their measures with those of the U.S. He also criticized Federal Reserve Chair Jerome Powell as incompetent and accused him of hurting the U.S. housing market.
Further, China’s economic data for August disappointed markets. That said, multi-month low Industrial Production growth, the weakest Retail Sales pace since November 2024, and a six-month high Unemployment Rate pushing the policymakers toward fresh stimulus.
Crypto, Equity Update
In the crypto universe, most coins pared previous weekly gains as markets brace for Wednesday’s U.S. Federal Reserve (Fed) monetary policy meeting. In doing so, the cryptocurrencies ignore upbeat industry news, mainly concerning the corporate crypto treasury drive.
That said, some of the top crypto news are as follows, while more updates like this could be traced to our Coin Bytes.
The Bank of England (BoE) proposed stringent restrictions on the amount of stablecoin that people and businesses can acquire, gaining backlash from pro-crypto groups arguing that it could challenge the UK’s growth and make it lag behind its counterparts. Also from the UK was news that the London Stock Exchange (LSE) launched blockchain platforms for private funds, per CoinTelegraph.
Further, the Ethereum ecosystem’s stablecoin supplies hit an all-time high of $166 billion, with USDT leading the pack, as investors seek solace in secured crypto avenues.
Meanwhile, Pump.fun excels in its buyback strategy, with the total amount of tokens repurchased being $94.5 million, around 6.58% of the supply in circulation.
On the same line, Galaxy Digital increases buying of Solana (SOL) tokens as a part of its SOL Treasury drive. The pro-crypto firms recently teamed up with Multicoin and Jump Crypto to add $306 million worth of SOL coins.
Elsewhere, Native Markets won the race for the Hyperliquid’s USDH ticker, after the governance vote by HYPE stakers and validators. The start-up firm beat major contenders like Paxos and Frax Finance by promising a natively integrated, yield-sharing model.
Also read: Native Markets Wins Hotly Contested Race for Hyperliquid’s USDH Ticker
On a grim note, at least four Malaysian Members of Parliament (MPs) were targeted in a sophisticated blackmail scheme using AI-generated deepfake porn, demanding $100,000 in crypto.
More Details: Malaysian MPs Targeted in Coordinated AI Deepfake Extortion for Crypto
On Wall Street, the U.S. equities began the key week on a firmer footing, helping the S&P 500 and Nasdaq to reach an all-time high (ATH), while the Dow Jones also rose around 0.20% intraday by press time.
Among the major shares, Tesla gained attention as founder Elon Musk shared the purchase of $1.0 billion worth of Tesla stocks from open markets. That said, technology optimists paid little heed to news of Nvidia facing China’s antitrust probe.
- Gold extends Friday’s rebound, posting mild gains around $3,660 within a five-day trading range.
- Bitcoin (BTC) posts a three-day losing streak, modestly offered around $114,800 as we write.
- Ethereum (ETH) also fall, down for the third consecutive day near $4,530 at the latest.
- U.S. Dollar Index (DXY) stays pressured, extends weekly loss to 97.45.
- Wall Street edges higher, with Dow Jones posting mild gains, but S&P 500 and Nasdaq both reaching record highs.
- WTI Crude Oil defends recovery, up more than 1.0% intraday gains to $63.50 by press time.
Risk news eyed…
Looking forward, the quarterly rollover of U.S. stock futures, starting from today, will join the key risk catalysts like the pre-Fed anxiety, geopolitical fears surrounding Russia and U.S. President Donald Trump, as well as Fed Governor Lisa Cook and Trump’s tariffs, which will be crucial to watch.
While the cautious mood may exert downside pressure on the risk assets, technology news can help U.S. equities and allow cryptocurrencies to pare recent losses.
Also read: Cryptocurrency Weekly Price Prediction: BTC, ETH, XRP Rally as Markets Bet Big on FOMC Rate Cuts
