Summary
- Crypto roundup for Thursday shows cautious optimism among traders, as Fed Chair Powell spoke nothing on monetary policy or the economy.
- Bitcoin stays mildly offered, Gold retreats from its ATH, while the U.S. Dollar hits a fresh two-month high.
- Fed Chair Powell’s latest speech didn’t mention anything about interest rates, joining previous dovish FOMC Minutes, but failed to test Dollar bulls.
- Talks about potential solutions to the U.S. shutdown, Israel-Hamas peace deal, and China’s return are additional positives.
- Ukraine-Russia tensions, political jitters in Europe, and Japan join a lack of data to challenge risk-takers.
- Upbeat crypto market developments fail to support buyers as firmer USD weighs on major coins.
- Qualitative catalysts will be crucial for near-term directions amid an absence of data.
Crypto Roundup for Thursday: Traders Face Slight Optimism
Market sentiment is slightly positive early Thursday, as U.S. Federal Reserve (Fed) Chairman Jerome Powell’s silence on monetary policy and the economy in the latest speech allowed policy doves to speculate on more interest rate cuts from the U.S. central bank.
Also reinforcing the risk appetite were the dovish FOMC Minutes, news of a potential peace deal between Israel and Hamas, talks on reopening the U.S. government, and political news from France.
It’s worth noting, however, that ongoing Ukraine-Russia jitters and no concrete plan to overcome the U.S. government shutdown challenge the optimists.
Against this backdrop, Bitcoin (BTC) remains mildly offered near $122,800, whereas the spot Gold (XAU) prints the first daily loss in five, following the previous day’s pullback from the all-time high. That said, the U.S. Dollar Index (DXY) hit a fresh two-month high during a four-day uptrend.
As per the latest Federal Open Market Committee (FOMC) Minutes, most Fed officials expect to cut rates further in 2025. The statement also signaled that while inflation risks are easing, concerns about employment risks have increased.
The U.S. Senate Republicans are considering a fresh approach to reopen the government. Senate Majority Leader John Thune is allegedly thinking about individual appropriations bills, like those funding the Pentagon and military pay, to put on a vote, as bipartisan talks for a short-term funding measure are still stuck.
Meanwhile, the Phase 1 agreement between Israel and Hamas, which could help ease the war in Gaza, gained major attention. The deal involves a hostage exchange and a partial Israeli military pullback from Gaza.
Chinese markets reopened after the Golden Week holidays, and China’s Ministry of Commerce announced new export controls on rare-earth materials, requiring foreign approval for exports to protect national security.
In France, President Macron said he would name a new Prime Minister within 48 hours and is optimistic about passing a government budget by December 31.
Crypto, Equity Update
Crypto currency traders face a volatile day as major coins reversed Wednesday’s gains early Thursday, before the U.S. open triggered a recovery in prices.
Bitcoin (BTC) turned positive after an initial slump, dropping back by press time, while Ethereum (ETH), Ripple (XRP), Solana (SOL), and Dogecoin (DOGE) are still in the red zone despite trimming intraday losses by press time.
Binance Coin (BNB) snaps a four-day winning streak, while Mantle (MNT) also takes a U-turn after hitting an all-time high, down 5.0% at the latest.
Notably, the Bitcoin Dominance jumps to 58.8%, from 58.2%, but the crypto market capitalization (market cap) stays mostly unchanged on the day to $4.19 trillion as we write, per the CoinMarketCap data.
Among the major news, New York’s approval to stake Ethereum (ETH) and Solana (SOL) gained attention. Following the state accord, Coinbase users in New York can stake ETH and SOL directly on the platform.
Elsewhere, DeFi Development Corporation joined hands with Superteam Japan to launch the Asian marjo’s first Solana-powered treasury project.
Block, previously known as Square, launched a completely integrated Bitcoin payments and wallet solution, Square Bitcoin. The services will help 4 million merchants to accept crypto with no processing fees during the first year.
Read More: Square Bitcoin Launches Zero-Fee Payments for 4 Million Merchants
A widely recognized U.S. crypto exchange, Gemini, expands operations to Australia with a local entity registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), the country’s financial intelligence agency. The details suggest that Australian users gain instant AUD deposits through Osko and NPP, eliminating international transfer fees.
More Details: Gemini Expands Operations to Australia with Local Banking and New Leadership
While some of the top crypto news are discussed above, more updates like this could be traced to our Coin Bytes.
In the case of U.S. equities, Wall Street begins Thursday’s trading on a mixed note as the Dow Jones drops 0.40% intraday, while the S&P 500 and Nasdaq Composite both post mild losses at the latest.
On Wednesday, U.S. stock markets traded mixed as the Dow Jones closed unchanged, but the S&P 500 and Nasdaq hit record levels.
AMD led gainers with a jump of 11.34%, while other major beneficiaries were Dell (+9.04%) and SMCI (+6.56%).
That said, the U.S. government approved billions in Nvidia AI chip exports to the UAE under a new deal. This is the first major tech deal with the UAE since Trump was in office and signals a push to strengthen ties with Gulf countries.
Also on the positive side was news that the Trump administration also ruled out tariffs on generic drugs, easing fears of broad levies on U.S. medicines. This marks a shift from previous plans to onshore all essential drug production.
- Gold bulls take a breather, pausing a four-day winning streak with mild losses around $4,030 by press time, after hitting an ATH the previous day.
- Bitcoin (BTC) pares gains, mildly offered near $122,800 despite lacking downside momentum.
- Ethereum (ETH) hits a weekly low, down more than 3.0% intraday to $4,360 as we write.
- U.S. Dollar Index (DXY) hits a fresh two-month high, up for the fourth consecutive day to 99.15 at the latest.
- Wall Street benchmarks trade mixed, after an upbeat day, with Dow Jones posting higher losses than mildly offered S&P 500 and Nasdaq.
- WTI Crude Oil prints a five-day uptrend, despite lacking upside momentum near $62.40 as we write.
An active day ahead…
While the U.S. data remains on the waiting list, due to the government shutdown, speeches from central bank officials will be important to watch, even if Fed Chairman Jerome Powell remains silent on monetary policy. Additionally, developments around the U.S. government shutdown, Trump’s political moves, and ongoing geopolitical tensions in Gaza and Ukraine will also be crucial to monitor.
That said, if risk-on factors fade, the U.S. Dollar Index could continue its run-up, while gold might benefit from its traditional haven status, but the cryptocurrencies could witness a mixed performance.
