Cryptocurrencies have experienced a strong rebound in the past 24 hours, driven by growing conviction about a potential Fed rate cut in September. This positive sentiment was further bolstered by favorable comments from Fed officials, which not only dragged down the Dollar but also lifted risk assets, including cryptocurrencies. The Dollar Index is currently hovering near 101.84, after hitting a more than 7-month low of 101.76 earlier in the trading session.
Market expectations for a Fed rate cut in September are high, with a 75.5 percent likelihood of a 25-basis points rate cut, slightly lower than the 76 percent expectation from the previous day. This sentiment has been steadily increasing, as just a week earlier, the likelihood of a rate cut stood at 47 percent. Investors are eagerly awaiting hints from the upcoming FOMC minutes release on Wednesday and Fed Chair Jerome Powell’s speech at the Jackson Hole symposium on Friday.
The positive sentiment surrounding a potential rate cut has had a significant impact on the cryptocurrency market. In the past 24 hours, cryptocurrencies saw a more than 3 percent increase in market capitalization, reaching $2.14 trillion from $2.08 trillion the day before. The 24-hour trading volume also surged by 28 percent to $65 billion. Notably, only one of the top 100 cryptocurrencies is trading with overnight losses exceeding a percent, and less than 10 of the top 50 cryptocurrencies are trading with weekly losses.
Meme category cryptocurrencies experienced a notable surge of over 6 percent in market capitalization, with a total market capitalization of $38.9 billion and a market dominance of 1.8 percent. All seven meme cryptos ranked within the top 100 recorded overnight gains of more than 4 percent. Similarly, the AI & Big Data category of cryptocurrencies also saw a surge of over 4 percent in market capitalization, with a total market capitalization of $23 billion and a market dominance of 1.1 percent. All eight cryptos in this category ranked within the top 100 recorded overnight gains of at least 2 percent.
Bitcoin, the leading cryptocurrency, traded between $61,396.33 and $57,864.71 in the past 24 hours, with a current trading price of $60,971.58, representing an overnight gain of more than 4 percent. Bitcoin’s year-to-date gain stands at 44.2 percent, with a weekly addition of 3.5 percent. Despite this positive movement, Bitcoin is still trading 17 percent below its all-time high recorded in March 2024.
In the U.S., Bitcoin Spot ETF products saw inflows rise to $62 million, up from $36 million the previous day. iShares Bitcoin Trust (IBIT) led with inflows of $92.7 million, while Bitwise Bitcoin ETF (BITB) recorded outflows of $25.7 million. Interestingly, there were no outflows recorded from Grayscale Bitcoin Trust (GBTC).
Ethereum, the leading altcoin, added 1.8 percent in the past 24 hours to trade at $2,665.17, around 46 percent below its all-time high. Ethereum’s year-to-date gains are now above 16 percent, with weekly gains close to a percent. However, Ethereum Spot ETF products saw outflows of $13.5 million, slightly down from $15 million the previous day. Grayscale Ethereum Trust (ETHE) recorded outflows of $20.3 million, while Grayscale Ethereum Mini Trust (ETH) saw inflows of $4.9 million.
Bitcoin continues to dominate the overall crypto market with a market share of 56.0 percent and a market capitalization of $1.20 trillion. Ethereum follows with a market cap of $321 billion and a market share of 14.95 percent. With a renewed appetite for risk, the market share of stablecoins has decreased to 8.22 percent.
Among the top-ranked cryptocurrencies, BNB (BNB) gained 6 percent overnight to trade at $567.54, while Solana (SOL) rallied 2.8 percent overnight and 1.3 percent in the past 7 days, currently trading at $146.72. XRP (XRP) surged 4.2 percent overnight and 6.9 percent in the past week to trade at $0.61, despite grappling with year-to-date losses of 0.8 percent. Toncoin (TON) gained over half a percent overnight and 8.9 percent in the past week to trade at $6.86, while Dogecoin (DOGE) added 4.9 percent in the past 24 hours to trade at $0.1052. TRON (TRX) surged 7.2 percent overnight and 15.4 percent over the past week to trade at $0.1462.
Among the top 100 cryptocurrencies, Brett (BRETT) led overnight gains with a surge of over 18 percent, followed by dogwifhat (WIF) and Aave (AAVE) with gains of more than 14 percent. Artificial Superintelligence Alliance (FET) and Wormhole (W) also recorded gains of over 10 percent in the past 24 hours. The only cryptocurrency among the top 100 to trade with overnight losses was dYdX (DYDX), shedding a little over 3 percent. DYDX, the L1 token for the dYdX Chain, touched an all-time low of $0.8475 on August 5, 2024.
Overall, the cryptocurrency market has shown resilience and strength in the face of market uncertainties, with positive sentiment driving significant gains across various categories and individual cryptocurrencies. As investors continue to monitor developments in the broader financial markets, the outlook for cryptocurrencies remains positive, supported by growing interest and adoption in the digital asset space. For more cryptocurrency news and updates, visit rttnews.com.
