Cryptos Rebound As Rate Cut Hopes Grow Stronger

Cryptocurrencies staged a strong rebound in the past 24 hours amidst greater conviction about a Fed rate cut in September. Favorable comments from Fed officials also boosted sentiment, dragging down the Dollar and lifting risk assets including cryptocurrencies.

The Dollar Index is currently hovering near 101.84, after touching a more than 7-month low of 101.76 earlier in the trade.

Even as markets overwhelmingly expect a Fed rate cut in September, the expectation regarding a 25-basis points rate cut stood at 75.5 percent versus 76 percent a day earlier and 47 percent a week earlier. Though the Fed’s next interest rate decision would be known only on September 18, markets are waiting for hints from the FOMC minutes due for release on Wednesday and the Fed Chair Jerome Powell’s speech at the Jackson Hole symposium on Friday.

The positive sentiment helped lift cryptocurrencies more than 3 percent to a market capitalization of $2.14 trillion, from $2.08 trillion a day earlier. The 24-hour trading volume also jumped 28 percent overnight to $65 billion. Only 1 among the top 100 cryptocurrencies is trading with overnight losses in excess of a percent. Also, only less than 10 among the top 50 cryptocurrencies are trading with weekly losses.

Meme category cryptocurrencies recorded a surge of more than 6 percent in market capitalization. With a market capitalization of $38.9 billion, the category commands a market dominance of 1.8 percent. All the 7 meme cryptos ranked within the top 100 overall recorded overnight gains of more than 4 percent.

The AI & Big Data category of cryptocurrencies also recorded a surge of more than 4 percent in market capitalization. With a market capitalization of $23 billion, the category commands a market dominance of 1.1 percent. All the 8 cryptos among the category ranked within the top 100 have recorded overnight gains of at least 2 percent.

Bitcoin traded between $61,396.33 and $57,864.71 in the past 24 hours. It is currently trading at $60,971.58 implying overnight gain of more than 4 percent, weekly addition of 3.5 percent and a year-to-date addition of 44.2 percent. At its current price, the leading cryptocurrency is trading 17 percent below the all-time high recorded in March 2024.

Bitcoin Spot ETF products in the U.S. witnessed inflows rising to $62 million, from $36 million a day earlier. iShares Bitcoin Trust (IBIT) topped with inflows of $92.7 million. Bitwise Bitcoin ETF (BITB) recorded outflows of $25.7 million. Surprisingly no outflows were recorded from Grayscale Bitcoin Trust (GBTC).

Ethereum added 1.8 percent in the past 24 hours to trade at $2,665.17, around 46 percent below the all-time high. Amidst weekly gains of close to a percent, the leading altcoin’s year-to-date gains are now above 16 percent.

Ether Spot ETF products however saw outflows of $13.5 million, edging down from $15 million a day earlier. Grayscale Ethereum Trust (ETHE) recorded outflows of $20.3 million whereas Grayscale Ethereum Mini Trust (ETH) recorded inflows of $4.9 million.

With a market capitalization of $1.20 trillion, Bitcoin dominates 56.0 percent of the overall crypto market. Ethereum which enjoys a market cap of $321 billion follows with a market share of 14.95 percent. Amidst a renewal in risk appetite, the market share of stablecoins has decreased to 8.22 percent.

4th ranked BNB (BNB) has gained 6 percent overnight to trade at $567.54. 5th ranked Solana (SOL) rallied 2.8 percent overnight and 1.3 percent in the past 7 days. SOL is currently trading at $146.72.

7th ranked XRP (XRP) surged 4.2 percent overnight and 6.9 percent in the past week to trade at $0.61. The cryptocurrency issued by Ripple Labs is however grappling with year-to-date losses of 0.8 percent.

8th ranked Toncoin (TON) gained more than half a percent overnight and 8.9 percent in the past week to trade at $6.86.

Dogecoin (DOGE), ranked 9th overall has also added 4.9 percent in the past 24 hours to trade at $0.1052.

10th ranked 10th ranked TRON (TRX) surged 7.2 percent overnight and 15.4 percent over the past week to trade at $0.1462.

70th ranked Brett (BRETT) topped overnight gains among the top 100 cryptocurrencies with a surge of more than 18 percent. 49th ranked dogwifhat (WIF) and 41st ranked Aave (AAVE) followed with gains of more than 14 percent. 33rd ranked Artificial Superintelligence Alliance (FET) and 96th ranked Wormhole (W) followed with gains of more than 10 percent in the past 24 hours.

84th ranked dYdX (DYDX) is the only cryptocurrency among the top 100 to trade with overnight losses. DYDX has shed a little more than 3 percent in the past 24 hours. DYDX, the L1 token for the dYdX Chain, a proof-of-stake blockchain network had touched an all-time low of $0.8475 on August 5, 2024.

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