Summary
- Crypto roundup for Tuesday highlights cautious mood among traders as U.S. policymakers struggle to avoid the government shutdown.
- Bitcoin, Gold, and the U.S. Dollar all drop on a day amid month-end positioning, backed by the risk-off mood.
- No major progress after the Senate’s rejection of the Republican-Democratic stopgap funding plan keeps traders on the lookout.
- U.S.-Israel deal on Gaza peace keeps traders optimistic, while OECD forecasts test positive momentum.
- Crypto developments remain mostly upbeat, but fail to materialize optimism amid broad consolidation.
- Equities stall upside momentum after two-day winning streak.
Crypto Roundup for Tuesday: Market Turns Cautious!
The risk complex remains dicey early Tuesday in New York as dovish bias surrounding the U.S. Federal Reserve (Fed) jostles with a looming U.S. government shutdown. Meanwhile, positive sentiment is also supported by hopes of peace between Israel and Gaza, with the U.S. playing a mediating role. However, risks such as President Donald Trump’s new tariffs and the potential delay of Friday’s key U.S. jobs report could challenge the dovish Fed outlook and contribute to a more cautious market mood.
Amid these plays, Bitcoin snaps a two-day winning streak while falling to $113,300 by press time, whereas the spot Gold (XAU) cools off to $3,821, snapping a three-day uptrend after hitting a record high of $3,871 earlier in the day. That said, the U.S. Dollar Index (DXY) drops for the third consecutive day, to 97.85 as we write.
Starting with the U.S. government shutdown fears, Senate Minority Leader Chuck Schumer criticized the current political conditions and the White House’s performance while stating that it is up to the Republicans whether they allow the shutdown, with Trump pulling the strings.
Elsewhere, the dovish Fed bias prevails despite the mixed activity and employment clues from the U.S., which in turn exerts downside pressure on the U.S. Dollar, especially amid the month-end positioning and the U.S. government shutdown fears.
That said, President Donald Trump unveiled new tariffs on lumber imports from the European Union (EU) and Japan, with rates capped at 15%, taking effect on October 14.
The White House has introduced a peace plan for Israel and Gaza, which it hopes both sides will adopt. This proposal includes suspending Israeli operations in Gaza and preventing the annexation of Gaza, alongside provisions for safe passage and amnesty aimed at neutralizing Hamas.
Meanwhile, the Asian Development Bank (ADB) has reduced its 2025 growth forecast for developing Asia to 4.8% from 4.9%, primarily due to the effects of steep U.S. tariffs. The ADB also warned that momentum is likely to slow further next year. India was hit hardest by this downgrade, with its 2025 fiscal year growth forecast cut to 6.5% from 6.7%.
Crypto, Equity Update
Crypto currency traders experience a pullback in price after a two-day winning streak, with major coins showing signs of bullish exhaustion. That said, Bitcoin (BTC) and Ethereum (ETH) both snap a two-day winning streak, while Ripple (XRP) prints the first daily loss in five. Meanwhile, Solana (SOL), Hyperliquid (HYPE), Toncoin (TON), Mentle (MNT), and Ethena (ENA) face notable losses.
Notably, the Bitcoin Dominance improves to 58.1%, from 57.8%, and so does the crypto market capitalization (market cap), up 0.70% on the day to $3.88 trillion by press time.
Talking about major news, the U.S. Securities and Exchange Commission (SEC) occupied headlines while suspending trading of the Nasdaq-listed QMMM Holdings after its shares soared 2,000% this month. Notably, allegations against the Hong Kong-based firm escalated after its crypto treasury announcements. On a positive note, the U.S. SEC’s Hester Peirce, a Republican commissioner, stated that they are willing to work with people who want to tokenise, while also adding, “We urge them to come talk to us.”
Elsewhere, BlackRock’s iShares Bitcoin Trust (IBIT) surpassed Deribit as the top platform for Bitcoin options following Friday’s expiration, where the open interest in the IBIT-related options jumped to $38 billion, while on Deribit, it was $32 billion, per Bloomberg.
Meanwhile, Kazakhstan introduced the first state-supported digital asset investment fund, the Alem Crypto Fund, with the key focus on the Binance Coin (BNB), fueling the BNB price by 5% the previous day.
Also Read: Kazakhstan Buys BNB for State Crypto Fund, Price Soars 5%
That said, the UK’s Metropolitan Police busted the biggest crypto fraud in history, worth £5.5 billion ($7.3 billion), as Chinese national Zhimin Qian pleaded guilty to duping over 128,000 victims between 2014 and 2017 before fleeing to Britain.
More Details: UK Seizure of £5.5bn Bitcoin Reveals Biggest Crypto Fraud In History
A U.S.-based global asset management company, Vanguard Group Inc., seems to be eyeing the crypto-based exchange-traded funds (ETFs) for its investors, after multiple years of a conservative approach. The firm’s alleged approach is likely taking clues from the market’s rush toward digital assets and the proximity to the U.S. SEC’s crypto ETF approvals.
Read More: Vanguard Mulls Crypto ETF Trading As SEC Deadlines Loom
Some of the top crypto news are mentioned above, while more updates like this could be traced to our Coin Bytes.
Moving on to the U.S. equities, traders face a sluggish start to the day, following a two-day winning streak, as markets await key data/events while struggling amid mixed trade and political headlines, not to forget the looming U.S. government shutdown risk. That said. Dow Jones remains defensive, but the S&P 500 and Nasdaq 100 drop around 0.20% on a day during the initial hour of trading.
On Monday, the Wall Street buyers kept the reins despite sluggish momentum, as a weaker U.S. Dollar, dovish Fed bets, and improving odds of the Hamas-Israel peace favoured the market’s sentiment.
Key Asset Moves
- Gold bulls take a breather, eyeing the first daily loss in four around $3,821, even after hitting an ATH earlier in the day.
- Bitcoin (BTC) snaps two-day winning streak, down 1.0% around $113,300 as we write.
- Ethereum (ETH) drops 1.5%, prints the first daily loss in three, near $4,150 at the latest.
- U.S. Dollar Index (DXY) falls further, extending the previous day’s losses to 97.80 at the latest.
- Wall Street benchmarks see-saw, after an upbeat day, with Dow Jones being defensive, but S&P 500 and Nasdaq 100 post modest losses by press time.
- WTI Crude Oil prints three-day downtrend, hitting one-week low near $62.00.
A busy day ahead…
Although most of the scheduled economic statistics for Tuesday are out and loud, concerns about the U.S. government shutdown, the Ukraine-Russia war, Trump tariffs, and uncertainty ahead of Friday’s U.S. jobs report could also move the markets. Among them, the last-ditch efforts of Washington to avoid a government shutdown, as the September 30 deadline approaches, will gain major attention.
Should the U.S. government fail to pass a law to avoid the shutdown, the U.S. Dollar could drown as this will delay Friday’s monthly job release and shake global confidence in Washington. The risk-off might also weigh on the equities, but cryptocurrencies and gold could regain upside momentum.
Also read: Crypto Weekly Price Prediction: BTC, ETH & XRP all Tumble as U.S. Data Fuels Dollar, NFP Eyed
