Summary
- Crypto roundup for Tuesday shows modest pessimism among traders as easing U.S. shutdown fears jostle with trade war tensions.
- Bitcoin snaps three-day winning streak, Gold eyes the biggest daily slump since November 2020, and the U.S. Dollar rises further.
- Hopes of an end to the U.S. shutdown jostle with U.S.-China trade war fears and mixed geopolitical news to propel the U.S. Dollar.
- Upbeat crypto developments, Q3 U.S. earnings fail to favor crypto, and equities.
- Risk news will be the key driver ahead of Friday’s U.S. CPI.
Crypto Roundup for Tuesday: Mixed Mood Prevails
New York traders struggle for a clear direction early Tuesday, after an upbeat Monday, as expectations of overcoming the U.S. government shutdown contrast with U.S. President Donald Trump’s trade war and Russia-Ukraine updates.
Against this backdrop, Bitcoin (BTC) snaps a three-day winning streak while falling back to $108,500, while the spot Gold (XAU) faces the biggest daily slump since November 2020, down over 4.0% to $4,180 by press time. Elsewhere, the U.S. Dollar Index (DXY) rises for the third consecutive day to 98.90, whereas the U.S. equities trade mixed at the latest.
The reports of a high-level U.S.-China meeting in Malaysia boosted optimism for a possible deal, fueling the risk assets. However, U.S. President Donald Trump’s threat to levy 155% tariffs on China reversed optimism afterward. Trump also added that both nations have “a very good relationship” and will meet in South Korea soon to work out a mutually beneficial agreement.
Meanwhile, White House Economic Adviser Kevin Hassett’s comments suggesting a shutdown deal could be reached this week also tried to lure the market optimists, but failed afterward.
Elsewhere, the U.S. Philly Fed Non-Manufacturing Index for October fell to -22.2 from -12.3, but failed to stop the U.S. Dollar buying amid sour sentiment and an absence of Federal Reserve (Fed) updates.
Talking about geopolitics, U.S. President Trump conveyed his hopes to Hamas to do what’s right and said that he has stopped numerous allies in the Middle East, which are pushing for “straightening out Hamas”. Furthermore, Vice President J.D. Vance highlighted an absence of adequate infrastructure to ensure Hamas is disarmed. The U.S. Vice President also noted that Trump has yet to decide whether to provide Tomahawk missiles to Ukraine.
Crypto, Equity Update
Cryptocurrency market snaps a three-day winning streak amid broad consolidation in the risk appetite and firmer U.S. Dollar, despite mixed trade and geopolitical news
Among major coins, Bitcoin (BTC) and Avalanche (AVAX) both drop 1.5% intraday, while Ethereum (ETH), Ripple (XRP), Dogecoin (DOGE), and Polkadot (DOT) post over 2.0% losses on the day each as we write. Notably, Aster (ASTER) and Mantle (MNT) both fall more than 3.0%, while Hyperliquid (HYPE) slides 6.0% intraday by press time.
That said, the Bitcoin Dominance improves slightly from 58.9% to 59.0%, while the crypto market capitalization (market cap) drops over 1.6% on the day to $3.69 trillion by press time, according to CoinMarketCap.
That said, some of the top crypto news are as follows, while more updates like this could be traced to our Coin Bytes.
Stock of a Pantera-backed digital asset treasury company, previously known as Helius, Solana Company (HSDT), sank 60% in the last three days as the firm announced the unlock date for its $500 million PIPE transaction.
Polymarket just opened the door for everyday users and professional traders to predict short-term crypto price moves in 15-minute intervals, backed by Chainlink’s trusted data feeds. The update allows traders to bet on whether a cryptocurrency’s price will go up or down within that window, combining the excitement of real-time trading with the transparency of blockchain.
Europol dismantled a Latvian crypto phishing ring that provided ‘services’ to international cybercriminals. The European law enforcement arrested seven suspects and seized millions in assets, including crypto, from a sophisticated crime-as-a-service operation behind 49 million fake accounts.
Read More: Europol Dismantles Major Latvian Crypto Phishing Ring in International Sting
Crypto exchange Gemini unveiled a specialized Gemini Solana Credit Card that provides rewards to users in SOL and includes staking as part of its rewards structure, offering more than 10% passive earnings to users.
For Details: Gemini Solana Credit Card Offers 4% Spendings Rewards & 6.77% Staking Yield
Elsewhere, Chinese regulators, including the People’s Bank of China and the Cyberspace Administration, instructed major tech firms to suspend their stablecoin initiatives in Hong Kong. Beijing’s actions pushed Alibaba-backed Ant Group and JD.com to pause their plan for Hong Kong’s pilot stablecoin program.
Also read: Ant Group, JD.com Pause Stablecoin Projects as China Regulators Push Back
Talking about the equities, Wall Street portrays the traders’ indecision, after an upbeat day, as Dow Jones posts mild gains, but S&P 500 and Nasdaq Composite post modest decline by press time.
Before the market opened, the Bank of America, GE Aerospace, Coca-Cola, and Philip Morris International reported strong third-quarter (Q3) earnings. Traders are now waiting for the after-market announcements of Netflix results, expected to boost technology shares.
On Monday, all three benchmark U.S. equity indices closed with over 1.0% daily gains, with Nasdaq hitting a record high, supported by steady buying throughout the day.
- Gold slumps over 4.0%, posting the biggest daily loss since late 2020 to $4,155 as we write.
- Bitcoin (BTC) snaps a three-day uptrend, falling over 1.5% to $108,500 by press time.
- Ethereum (ETH) slides, falling over 2.0% to $3,900 at the latest.
- U.S. Dollar Index (DXY) rises for the third consecutive day, modestly bid near 98.90.
- Wall Street benchmarks trade mixed, with the Dow Jones mildly up, while the S&P 500 and Nasdaq Composite post modest losses as we write.
- WTI Crude Oil stays pressured, struggles near the lowest level since early May, near $56.80 by press time.
Less Activity Ahead…
Looking forward, key qualitative factors are set to drive market activity before Friday’s U.S. inflation release, despite a light calendar for the day. That said, the market players will also follow the U.S. third-quarter (Q3) earnings, progress in U.S.-China trade talks, developments on the U.S. government shutdown, and tensions between Ukraine and Russia.
Against this backdrop, the U.S. Dollar may maintain its recent strength, while gold and equities are expected to trade mixed. However, cryptocurrencies could give back some of their earlier gains amid the likely risk-off mood, unless the U.S. government shutdown ends.
