Summary
- Crypto roundup for Tuesday shows trader indecision, despite upbeat equities, dovish Fed bias, and an absence of major risk-negative news.
- Bitcoin cools off, but Gold and the U.S. Dollar remain firmer.
- U.S. policymakers fail to overcome the shutdown for the fifth time.
- Trump announces fresh tariffs and shows readiness to supply Tomahawk missiles to Ukraine.
- Carlyle Group released employment and inflation forecasts as the government data release halts.
- Crypto market developments remain positive, U.S. equities defend bullish bias.
Crypto Roundup for Tuesday: Mixed Mood Prevails…
Global financial markets faced uncertainty early Tuesday, undoing the previous day’s cautious optimism. The failure of U.S. policymakers to resolve the government shutdown, along with ongoing issues related to Trump’s tariffs and political drama in Japan and Europe, weighed on market sentiment. Further uncertainty came from mixed statements by U.S. Federal Reserve (Fed) officials and concerns around upcoming U.S. data releases.
Against this backdrop, Bitcoin (BTC) stalls its six-day rally by falling to $123,500, following Monday’s all-time high, while Gold (XAU) hits a new record around $3,985, close to $3,980 by press time. Meanwhile, the U.S. Dollar Index (DXY) remains firmer for the second consecutive day, up 0.30% intraday near 98.50 by press time.
U.S. President Donald Trump announced a 25% tariff on all medium and heavy-duty trucks, and also commented on the possibility of supplying Tomahawk missiles to Ukraine, despite showing uncertainty about their intended use.
The U.S. Senate rejected the Democrat-backed bill to reopen the government for the fifth time. Senate Minority Leader Chuck Schumer dismissed Trump’s claims of bipartisan talks on expiring health insurance subsidies, asserting that no such discussions were happening.
Harvard economist Gita Gopinath, former Chief Economist of the International Monetary Fund (IMF), criticized the Trump administration’s “Liberation Day” tariffs. Gopinath stated that while these tariffs generated revenue for the U.S. government, they largely burdened U.S. businesses and consumers, functioning more like a tax than a growth strategy.
Elsewhere, aftershocks of a sudden resignation from the newly appointed French Prime Minister, Sebastien Lecornu, and the election of Japan’s first female leader, Sanae Takaichi, as its new Prime Minister, kept political plays active.
It’s worth noting that a U.S. investment manager, Carlyle Group released its own employment forecasts as the government data release halts. As per their reports, the U.S. created only 17K jobs in September, and the inflation risk escalated. The news, however, failed to inspire the U.S. Dollar sellers even as the dovish Fed bets hold.
Crypto, Equity Update
Crypto currency traders stay on the bullish path, despite lacking upside momentum of late.
With this, Bitcoin (BTC) struggles to extend its six-day uptrend, after refreshing an all-time high the previous day, while Ethereum (ETH) rises for the third consecutive day, staying near Monday’s three-week high. Meanwhile, Binance Coin (BNB) jumps over 8.0% to hit a fresh record top, but Ripple (XRP) prints mild losses by press time. With this, the BNB becomes the third-largest crypto worldwide, unseating XRP.
Notably, the Bitcoin Dominance eases to 58.0%, from 58.5%, but the crypto market capitalization (market cap) rises 0.70% on the day to $4.28 trillion as we write.
Among the major news, Bank of England (BoE) Governor Andrew Bailey praised stablecoins and their potential for public trust and innovation in payments.
Meanwhile, the European Commission looks set to give more powers to the European Securities and Markets Authority (ESMA) in its control over cryptocurrency companies.
Elsewhere, Galaxy Digital unveiled GalaxyOne retail trading app to cater to the consumer market while offering 8% yield, and combining with crypto and stock trading.
More Details: GalaxyOne Retail Trading App Launches with 8% Yield to Challenge Robinhood
On a positive side, the global fund manager BlackRock’s iShares Bitcoin Trust (IBIT) becomes the first fund to hit the asset under management (AUM) of over $100 billion, in less than two years after its inception. The IBIT has also surpassed all other BlackRock Exchange Traded Funds (ETFs) in terms of profitability, with an annual revenue of more than $244 million.
Read More: BlackRock Bitcoin ETF Seizes the Limelight with $100B Milestone in Sight
Ethereum co-founder Vitalik Buterin uncovers a critical memory flaw that slows down blockchain and AI (Artificial Intelligence) systems, citing a 25% latency on doubling the memory capacity.
Also read: Vitalik Buterin Exposes Critical Memory Flaw Slowing Down Blockchain and AI Systems
In the case of U.S. equities, benchmark indices began Tuesday’s trading with mild gains, after a mixed daily performance. That said, Dow Jones remains modestly bid, whereas the S&P 500 and Nasdaq gain around 0.20% each on a day while refreshing their all-time highs (ATHs).
On Monday, Wall Street traded mixed as the Dow Jones closed with mild losses, but both the S&P 500 and NASDAQ indices reached record levels, with AMD’s rally leading the NASDAQ’s gains. That said, shares of Advanced Micro Devices (AMD) surged 23% after announcing a deal with OpenAI to build data centers, potentially allowing OpenAI to own 10% of the chipmaker. Tesla (TSLA) shares also rose 5.5% following the announcement of a new vehicle model launch event set for November 7.
- Gold bulls keep the reins, up for the third consecutive day to refresh its ATH near $3,985, close to $3,980 by press time.
- Bitcoin (BTC) retreats to $123,500, easing after rising for six consecutive days.
- Ethereum (ETH) posts a three-day uptrend, staying mildly bid near $4,700 at the latest.
- U.S. Dollar Index (DXY) stays firmer, up 0.50% intraday to 98.45at the latest.
- Wall Street benchmarks hold highs, after a mixed day, with Dow Jones posting mild gains, whereas S&P 500 and Nasdaq gain around 0.20% each on the day while refreshing their all-time highs (ATHs).
- WTI Crude Oil edges higher, up for the third consecutive day after hitting a four-month low, mildly bid near $61.75 as we write.
Mixed moves ahead
Moving on, the market faces another day of uncertainty, with a light economic calendar and a backlog of U.S. data adding to the mix of mixed trade and political headlines.
That said, the key catalysts to watch will include developments around the U.S. government shutdown, the Ukraine-Russia conflict, the Israel-Hamas situation, and Trump’s tariffs. Additionally, several central bank officials are set to speak, which could trigger market moves.
With momentum likely to remain sluggish, the U.S. Dollar may continue to defend its rebound. Meanwhile, growing confidence in cryptocurrencies, a rising preference for equities, and concerns about a potential pullback in gold could keep traders on their toes.
