Cryptocurrency market capitalization increased in the past 24 hours as markets reassessed the likelihood of a rate cut by the Fed

Cryptocurrency market capitalization increased in the past 24 hours as markets reassessed the likelihood of a rate cut by the Fed

Cryptocurrency market capitalization increased in the past 24 hours as markets reassessed the likelihood of a rate cut by the Fed in the wake of weak economic data from the U.S.

Close on the heels of job openings in the U.S. falling to a six-month low of 7.19 million in March, data released on Wednesday showed private businesses in the U.S. adding 62 thousand workers to their payrolls in April, which was the softest increase since July of last year.

Indications of a stress in the labor market was followed by data showing contraction in the U.S. economy. Data released by the U.S. Bureau of Economic Analysis on Thursday showed the American economy contracting at an annualized rate of 0.3 percent in the first quarter of 2025. The first decline since the first quarter of 2022 was also a sharp reversal from the 2.4-percent growth recorded in the previous quarter.

Updates to PCE-based inflation readings, considered the Fed's preferred inflation gauge were also provided on Thursday. The year-on-year PCE Price Index which was expected to decline to 2.2 percent in March recorded a slightly higher level of 2.3 percent. The core component thereof declined to 2.6 percent along expected lines. The month-on-month PCE Price index remained flat as expected. The core component thereof which was expected to decline to 0.1 percent also recorded a flat reading.

Despite the PCE-based inflation readings exhibiting mixed signals, rate cut expectations have firmed up. According to the CME FedWatch tool that tracks the expectations of interest rate traders, the probability of a 25-basis points rate cut by the Fed in May is currently at 8.4 percent as compared with 6 percent a day earlier.

Expectations of meaningful progress in tariff negotiations between the U.S. and its trade partners also supported crypto market sentiment.

Overall crypto market capitalization has increased to $3 trillion implying an overnight gain of 1.1 percent. Close to 50 percent of the top 100 cryptocurrencies are trading with overnight gains of more than a percent.

The 24-hour trading volume has also increased 19 percent to $85 billion.

Bitcoin has rallied 1.3 percent overnight to trade at $96,194.54, around 12 percent below the all-time high.

Ethereum has also added 2 percent in the past 24 hours to trade at $1,845.

Outflows to Bitcoin-based Spot ETF products in the U.S. recorded $56 million on Wednesday versus inflows of $173 million a day earlier. Fidelity Wise Origin Bitcoin Fund (FBTC) topped outflows with $138 million followed by ARK 21Shares Bitcoin ETF (ARKB) that recorded outflows of $130 million. iShares Bitcoin Trust (IBIT) topped inflows with $267 million.

Ethereum-based Spot ETF products witnessed outflows of $2 million on Wednesday versus $18 million on Tuesday.

4th ranked XRP edged up 0.14 percent overnight to trade at $2.23, around 42 percent below the all-time high.

5th ranked BNB added 0.30 percent overnight at its current trading price of $603.

The price of 6th ranked Solana gained 2.8 percent overnight to $152.

8th ranked Dogecoin added 1.6 percent overnight to trade at $0.1784. DOGE is currently trading 76 percent below the record high.

9th ranked Cardano also gained more than a percent overnight to trade at $0.7058. The trading price is 77 percent below the cryptocurrency's all-time high.

10th ranked TRON gained close to 1.5 percent overnight and is currently changing hands at $0.2488.

64th ranked Virtuals Protocol (VIRTUAL) topped overnight gains among the top 100 cryptocurrencies with a surge of close to 35 percent. 72nd ranked Curve DAO Token (CRV) has also rallied more than 10 percent overnight.

76th ranked FLOKI (FLOKI) topped overnight losses among the top 100 cryptocurrencies with a decline of close to 6 percent. 62nd ranked Optimism (OP) also slipped 3.3 percent in the past 24 hours.

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