Summary
- Crypto roundup for Monday points to optimism among the markets as the U.S. bank holidays join positive headlines from Washington and the Middle East.
- Bitcoin edges lower, Gold hits fresh ATH despite firmer U.S. Dollar.
- U.S. President Trump softens his tone on China tariffs, and Hamas-Israel exchange prisoners.
- Trump’s 100% tariffs, mass layoffs, and Ukraine-Russia fears triggered a heavy selloff late last week.
- Uncertainty surrounding the U.S. shutdown joins a cautious mood before this week’s top-tier earnings to test the risk-on mood.
- Cryptocurrencies struggle to defend weekend recovery despite whales buying.
- Equities cheer the return of risk-takers despite bank holidays, reversing Friday’s heavy losses.
Crypto Roundup for Monday: Market Optimism Returns Despite Bank Holidays…
The risk complex remains firmer early Monday in New York as bank holidays in the U.S. and Canada join U.S. President Donald Trump’s retreat from activating a trade war with China. Adding to the risk-on mood could be the exchange of prisoners between Hamas and Israel, as well as upbeat China trade data for September.
Amid these plays, Bitcoin (BTC) remains mildly offered around $114,700, struggling to defend the weekend’s recovery, following Friday’s heavy slump. That said, the spot Gold (XAU) hits a fresh ATH near $4,100, up for the second consecutive day, while the U.S. Dollar Index (DXY) picks up bids to reverse the previous day’s losses.
After announcing 100% tariffs on China, U.S. President Donald Trump and Treasury Secretary Scott Bassent both signaled that 100% tariffs doesn’t have to happen, which in turn improved the sentiment.
Meanwhile, recently upbeat U.S. data also allowed the risk sentiment to improve, as well as favor the U.S. Dollar. Among them are Friday’s consumer sentiment and inflation expectations, as well as the previous flight ticket details from Delta Airlines showing higher consumer spending.
Earlier in the day, China’s trade data for September showed resilience, with exports rising at the fastest pace in six months, and Imports also came in stronger than forecast.
In France, a new government is formed after the last week’s political showdown, which in turn eased political fears, especially when the French President Emmanuel Macron managed to find replacements of major political leaders.
Crypto, Equity Update
Cryptocurrency markets witness consolidation moves as major coins print modest losses to pare weekend recovery, despite lacking momentum. Still, the majority of the tokens are well-set for a daily loss.
Bitcoin (BTC), Ethereum (ETH) both post minor downside, whereas Solana (SOL) drops more than 1.0% on the day. However, Ripple (XRP), Uniswap (UNI) and Cardano (ADA) rise over 2.0% intraday.
Notably, the Bitcoin Dominance drops to 58.9%, from 59.9%, but the crypto market capitalization (market cap), rose 3.27% on the day, to $3.88 trillion by press time, according to CoinMarketCap.
Hyperliquid is ready with a major network upgrade, HIP-3, to increase decentralization. Details suggest that, by staking 500,000 HYPE tokens, the update will enable eligible developers to start their own permissionless perpetual DEXs, which are trading platforms that operate fully on-chain.
Elsewhere, a major crypto exchange, Coinbase, collaborates with the U.S. payment giant, American Express (AmEx) to provide a Bitcoin rewards credit card in the U.S. starting this autumn.
Further, the last week’s crypto crash allowed stablecoin giants to infuse more liquidity as Tether and Circle collectively injected around $1.75 billion in new USDT and USDC while Ethereum investment firm Bitmine acquired over $100 million in ETH.
Read More: Tether and Circle Inject $1.75B Liquidity After Historic Market Crash
On a related front, crypto whales took advantage of Friday’s price crash, adding millions of coins like Pepe (PEPE), Hyperliquid (HYPE), and Ethereum(ETH).
More Details: Time to buy? Crypto Whales Are buying PEPE, ETH, and HYPE like Crazy
Some of the top crypto news are mentioned above, while more updates like this could be traced to our Coin Bytes.
Wall Street begins Monday’s trading on a firmer footing, with the Dow Jones up 1.0%, while S&P 500 and Nasdaq 100 both rising nearly 1.5% on a day by press time. It’s worth noting that the U.S. equity benchmarks dropped more than 2.0% each on Friday amid broad risk-aversion.
- Gold posts a two-day winning streak, extending the previous day’s rebound toward refreshing ATH near $4,100.
- Bitcoin (BTC) retreats, fading the previous day’s recovery while falling back to $114,700 by press time.
- Ethereum (ETH) also drops back, down 1.26% intraday to $4,105 as we write.
- U.S. Dollar Index (DXY) reverses Friday’s losses, up 0.50% intraday to 99.30 at the latest.
- Wall Street benchmarks trade higher, with Dow Jones up 1.0%, while S&P 500 and Nasdaq both rising over 1.5% on a day as we write.
- WTI Crude Oil recovers, bounces off a 5.5-month low to $59.90, up 2.80% intraday by press time.
Market consolidation ahead…
With bank holidays in the U.S. and Canada, and a light economic calendar elsewhere, Monday looks slightly dull for momentum traders, allowing the risk-takers to consolidate the previous day’s losses. However, risk catalysts like Trump’s trade/political stance and mixed geopolitical news could keep traders engaged.
The risk-on mood may support Gold, cryptocurrencies, and equities, while the U.S. Dollar can witness a pullback. Notably, uncertainty surrounding the U.S. shutdown, looming U.S.-China trade war fears and Ukraine-Russia tensions could keep the optimism in check, likely putting a floor under the U.S. Dollar. This could test recovery moves of risk assets like cryptocurrencies and equities, but the Gold is likely to defend its shine.
Also read: Cryptocurrency Weekly Price Prediction: BTC, ETH & XRP Plummet under U.S. Risk Pressure
