- Crypto roundup for Tuesday highlights cautious optimism amid Trump’s statements, U.S. PMIs, and anxiety before Fed Chair Powell’s speech.
- Bitcoin recovers from two-week low, Gold hits another record high, but U.S. Dollar lacks clear direction.
- Trump addresses the UN General Assembly, initially thanking and then criticizing the international body.
- US PMIs, Richmond Fed Manufacturing Index for September came in downbeat.
- Cautious mood ahead of Fed Chair Powell’s speech restricts market moves.
- Cryptocurrencies consolidate previous day’s slump amid upbeat industry-positive news.
- U.S. equity benchmarks dribble after refreshing record high on Monday.
Crypto Roundup for Tuesday: Mixed Momentum Prevails!
Market sentiment remains modestly positive early Tuesday morning in New York as U.S. President Donald Trump addresses the United Nations (UN) General Assembly. Also contributing to the trading moves were mixed U.S. data, trade/political news, and anxiety ahead of a speech from Federal Reserve (Fed) Chairman Jerome Powell.
Against this backdrop, Bitcoin (BTC) pares the biggest daily loss in three weeks, as well as snaps a two-day losing streak, while bouncing off a fortnight’s low to $113,000. Further, the spot Gold (XAU) price keeps its record rally during a third consecutive day, with the latest peak of $3,791, before easing to $3,770 by press time. That said, the U.S. Dollar Index (DXY) remains sidelined around 97.30 after snapping a three-day winning streak and retreating from a week’s high the previous day.
Trump initially thanked the UN for showing respect to the U.S. before justifying his hard stance on immigration policies. More importantly, his comments on Palestine and Russia offered a slight downside tilt to the risk appetite. The Republican leader also criticized the UN while saying, “The UN has tremendous potential, but it has never lived up to those expectations.”
Apart from Trump’s statements, mixed U.S. data and Fed talks also challenged the market players, especially after last week’s upbeat U.S. data and Fed Chair Powell’s hidden resistance to cut the rates further.
Talking about the data, September’s preliminary readings of the S&P Global Purchasing Managers’ Indices (PMIs) for the U.S. came in weak but didn’t weigh on the U.S. Dollar. That said, both Manufacturing and Services PMIs matched market forecasts of 52.0 and 53.9 respectively, versus 53.0 and 54.5 priors in that order. With this, the Composite PMI defied analysts’ estimations of witnessing a repeat of the 54.6 figure, by falling to 53.6.
Further, the Richmond Fed Manufacturing Index for September also marked a downbeat figure of -17, versus the expected -5 and the previous monthly release of -7.
Before the U.S. data, Fed Vice Chair for Supervision Michelle Bowman conveyed her worries that the Fed is behind the curve on the jobs market, citing a dovish tone.
On Monday, a pair of U.S. Federal Reserve officials, Beth M. Hammack and Alberto Musalem, expressed reluctance to implement further rate cuts due to inflation risks. They both noted that the economy is performing decently and may even be improving. Meanwhile, Thomas Barkin, President of the Federal Reserve Bank of Richmond, took a more neutral stance, acknowledging rising business confidence. Meanwhile, Stephen Miran, the newly appointed Fed Governor by U.S. President Donald Trump, advocated for an aggressive 200 basis point (bps) rate cut in the near term.
Elsewhere, fears of a U.S. government shutdown also eased after NBC News reported that President Donald Trump has agreed to meet with Democratic leaders and try to break the deadlock after the Senate rejected plans for stopgap funding. The matter gained attention as the September 30 deadline looms.
Crypto, Equity Update
Crypto currency traders experience consolidation after Monday’s sharp drop, with major coins showing signs of bottoming out. This raises doubts about whether the slump was a bearish warning or just a healthy correction.
Bitcoin (BTC) portrays a corrective bounce, Ethereum (ETH) and Ripple (XRP) also lick their wounds, whereas Avalanche (AVAX) and Litecoin (LTC) rise more than 1.0% to lure buyers. Notably, the Bitcoin Dominance also improves to 57.7%, from 57.1%, and so does the crypto market capitalization (market cap), up 0.35% on the day to $3.91 trillion by press time.
Talking about major news, the United Arab Emirates’ (UAE’s) signing of an agreement to standardize the cross-border sharing of tax-related information on crypto assets, on a framework developed by the OECD, gained major attention.
Also Read: UAE Signs Crypto Data-Sharing Agreement under CARF, First Swap in 2028
Additionally, News of YZi Labs (formerly Binance Labs) doubling its investment in Ethena, the issuer of USDe (the third-largest stablecoin), has boosted confidence among crypto bulls, particularly in ENA.
Read Details: YZi Labs Backs Ethena Labs, What Does it Mean for ENA Price?
Elsewhere, Midas collaborates with Axelar to introduce a new mXRP liquid staking token solution, allowing XRP holders to earn a target yield of 6-8% while still providing liquidity across the decentralized finance (DeFi) ecosystem.
More Information: New mXRP Liquid Staking Token Launches, Offering XRP Holders Up to 8% Yield
Furthermore, Helius Medical Technologies Inc. (NASDAQ: HSDT) has entered the Solana ecosystem by acquiring 760,190 SOL tokens, valued at $175 million, as part of its initiative to build the Solana Treasury.
Read More: Helius Launches Solana Treasury With 760,190 SOL, Worth $175 Million.
Some of the top crypto news are mentioned above, while more updates like this could be traced to our Coin Bytes.
Talking about equities, Dow Jones prints mild gains, but the S&P 500 and Nasdaq remain lacklustre during the initial hour of trading.
Despite a weak start to the week, U.S. equity benchmarks, including Dow Jones, S&P 500, and Nasdaq, turned around and reached new record highs on Monday. That said, news from Nvidia boosted market sentiment with a $100 billion investment in OpenAI.
Key Asset Moves
- Gold defends its record rally, hitting an ATH of $3,791 before easing to $3,770.
- Bitcoin (BTC) recovers from a two-week low, modestly up near $113K after falling the most in three weeks the previous day.
- Ethereum (ETH) prints a three-day losing streak, under pressure around $4,190 by press time.
- U.S. Dollar Index (DXY) seesaws, lacks clear directions near 97.30 after retreating from the weekly top the previous day.
- Wall Street benchmarks trade mixed, after reaching an all-time high on Monday, with Dow Jones posting mild gains, but S&P 500 and Nasdaq lack clear direction.
- WTI Crude Oil jumps, up 1.80% intraday to $63.45, after hitting a two-week low the previous day.
All eyes on Fed’s Powell…
Looking forward, Fed Chairman Jerome Powell’s speech, starting from 16:35 GMT, will be crucial for the markets, especially when traders seek consolidation in gold and cryptocurrency prices.
If the Fed Boss reiterates his data-dependent stance, like he did after the latest FOMC, the U.S. Dollar could recover, which in turn can put downward pressure on gold prices and challenge the latest rebound in cryptocurrencies.
However, technology stocks may remain strong and could support U.S. equities, unless Powell rules out further rate cuts entirely, which seems unlikely.
Also read: Market Digest: Bitcoin Drops to 112K as Tech Gains Clash with Fed Doubts
