Summary
- Crypto roundup for Monday highlights the jittery markets as U.S. government shutdown fears join Fed-linked anxiety.
- Bitcoin declines the most in three weeks, Gold renews its ATH, and the U.S. Dollar retreats.
- Recent U.S. data and Fed Chair Powell’s statements challenge dovish market expectations.
- U.S. Senate’s rejection of stop-gap funding deal ahead of September 30 deadline fuels market fears.
- Cryptocurrencies slump, yields edge higher, and equities struggle ahead of this week’s top-tier catalysts.
Crypto Roundup for Monday: Market Sentiment Dwindles
The risk appetite remains downbeat early Monday in New York as traders struggle to place their bets on the U.S. Federal Reserve’s (Fed) next moves. Adding to the market’s sour sentiment are the growing fears of the U.S. government shutdown and cautious mood ahead of this week’s top-tier data/events.
Amid these plays, Bitcoin (BTC) marks the biggest daily slump in three weeks, down over 2.0% to $112,500 at the latest, while the spot Gold (XAU) renews its all-time high (ATH) near $3,730. That said, the U.S. Dollar Index (DXY) snaps a three-day winning streak while retreating from a week’s high. Furthermore,
Federal Reserve Chairman Jerome Powell’s press conference, terming the rate cut as a “risk management” decision and emphasizing that future policy would remain data-dependent, challenged the U.S. Dollar bears. Powell also downplayed revisions to employment data and pointed to immigration as a key driver in changes to the labor market, rather than job market weakness.
Notably, the U.S. data post-Fed meeting also came in strong and raised doubts on the U.S. central bank’s ability to lower rates further. On Monday, the Chicago Fed National Activity Index improved to a five-month high of -0.12 versus -0.29 prior (revised).
This allowed U.S. Treasury bond yields to remain firmer across all maturities, while also portraying a reversal from a multi-month low on the short-term bond yields. However, the U.S. equity benchmarks begin the week’s trading on a negative note, after reaching an all-time high last week.
Meanwhile, traders are also cautious ahead of this week’s key data and events, which in turn adds to the market’s shift from cryptocurrencies toward Gold. Among this week’s top-tier catalysts, the preliminary readings of September Purchasing Managers’ Indices (PMIs) for major economies, a speech by Federal Open Market Committee (FOMC) Chairman Jerome Powell, and the release of the U.S. Core Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge, gain major attention.
Elsewhere, CNBC News came out with the news stating the U.S. Senate’s rejection of Democratic and Republican proposals to temporarily fund the federal government. It’s worth noting that the deadline for lawmakers to fund the government is September 30, per the news, which in turn escalates the anxiety around the top and raises the risk aversion.
Also read: Why is Crypto Falling Today? BTC falls 3%, ETH slips 7%, XRP down 6%
- Gold refreshed its ATH near $3,730, before easing to $3,715 by press time.
- Bitcoin (BTC) drops the most in three weeks, down over 2.0% to $112,500 at the latest
- Ethereum (ETH) slumps 7.0%, before bouncing off to $4,185, losing 6.0% as we write.
- U.S. Dollar Index (DXY) snaps three-day winning streak, while retreating from a week’s high to 97.50.
- Wall Street benchmarks begin the day on a negative note, with mildly offered Dow Jones and S&P 500, as well as a lackluster Nasdaq.
- WTI Crude Oil stays pressured, down for the fourth consecutive day to $62.00 as we write.
An Active Day Ahead…
Moving forward, speeches from central bank officials will be eyed for intraday directions amid a lack of data elsewhere. However, the main focus is on risk factors, mainly surrounding the geopolitical developments, the U.S. stop-gap funding news, and the Fed expectations, which could direct traders before this week’s key data/events. That said, looming U.S. Government shutdown fears might weigh on the U.S. Dollar, which in turn can fuel the Gold price further. However, the cryptocurrencies might not benefit.
Also read: Cryptocurrency Weekly Price Prediction: BTC Holds, But ETH & XRP Dip as Dollar Edges Up
