Cryptocurrencies are trading mostly lower as markets brace for the PCE-based inflation readings from the U.S. on Thursday that could have a major bearing on the Federal Reserve's interest rate decision. Uncertainty ahead of the Presidential elections on Tuesday also added to market's nervousness. However, the strong inflows to Bitcoin Spot ETF products in the U.S. limited losses.
The PCE Price index on a year-on-year basis is seen declining to 2.1 percent in September from 2.2 percent in August. The core component thereof is seen decreasing to 2.6 percent from 2.7 percent in August. On a month-on-month basis the PCE price index is seen edging up to 0.2 percent from 0.1 percent in the previous month. The core component thereof is seen rising to 0.3 percent in September from 0.1 percent in August.
Markets are also waiting for the weekly data on initial jobless claims to be released by the U.S. Department of Labor.
The initial jobless claims for the week ended October 26 is expected to edge up to 230 thousand from 227 thousand in the previous week. With no major spike in claims expected, markets are pricing in slower-than-expected rate cuts by the Fed as concerns about the labor market appear to have abated.
The CME FedWatch tool now shows the likelihood of a quarter point rate cut on November 7 at 96.1 percent versus 98.4 percent a day earlier, 95.5 percent a week earlier and 65.3 percent a month earlier.
Meanwhile yields on ten-year bonds in the U.S. have hardened 0.33 percent overnight to 4.283 percent, versus the month's high of 4.339 percent recorded on Tuesday.
The 6-currency Dollar Index, a measure of the Dollar's strength against a basket of 6 currencies has edged down overnight to 103.97, versus the month's high of 104.64 recorded on Tuesday.
Overall crypto market capitalization has edged down to $2.43 trillion while the 24-hour trading volume declined 16.9 percent to $85.7 billion.
Bitcoin edged up 0.30 percent overnight to trade at $72,427.22, around 2 percent below the all-time high. Weekly gains are 7.9 percent whereas addition over the 30-day horizon exceeds 13 percent. Gains in 2024 are at 64 percent. The original cryptocurrency traded between $72,905 and $71,411 in the past 24 hours.
Data from Farside Investors showed massive inflows of $893 million to Bitcoin Spot ETF products in the U.S. on Wednesday versus $870 million a day earlier.
The bulk of the inflows is attributed to iShares Bitcoin Trust (IBIT) which received record inflows of $872 million. Bitwise Bitcoin ETF (BITB) however recorded outflows of $23.9 million.
Ethereum lost more than a percent in the past 24 hours to trade at $2,644.46, around 46 percent below the previous peak. Weekly gains are however at 4 percent. Gains in 2024 are at 15.9 percent. The leading alternate coin traded between $2,720 and $2,632 in the past 24 hours.
