Leading the list of losers, Toncoin follows Bitcoin and Ether in their retreat alongside other top cryptos
Bitcoin and Ether Fall as Cryptocurrency Market Retreats
Cryptocurrencies Experience a Downturn
Bitcoin and Ether, two of the most popular cryptocurrencies, experienced a drop in value on Monday. Bitcoin fell below $26,300, while Ether remained below the $1,600 mark. Other top cryptocurrencies also saw losses, with Toncoin leading the way with a slide of over 4% in the past 24 hours. This decline in the cryptocurrency market follows the U.S. Federal Reserve’s recent policy stance, which indicated that interest rates may rise in the near future.
Bitcoin dropped by 1.22% in the last 24 hours, reaching $26,252.57. This marks a weekly loss of 0.91%. Experts predict that Bitcoin’s downward trend will continue as it failed to break its 50-day moving average of $26,876. If Bitcoin falls below $26,000, it could experience further declines.
Ether also experienced a decline, dropping by 0.86% to $1,579.12. This represents a 2.52% decrease for the week. The lack of excitement surrounding the upcoming EIP-4844 upgrade, which aims to improve the Ethereum network, has raised concerns about the future of Ether. If Ether fails to rally above $1,650, it could have significant implications for other cryptocurrencies.
Other Cryptocurrencies and Market Capitalization
All other top 10 non-stablecoin cryptocurrencies also saw losses in the past 24 hours. Toncoin, in particular, fell by 4.22% to $2.20, resulting in a weekly loss of 3.98%. However, Toncoin still experienced a monthly rise of over 50%. The total crypto market capitalization dropped by 1.0% to $1.04 trillion, while trading volume increased by 8.42% to $17.64 billion.
U.S. Stock Futures and Asian Stock Indexes
U.S. stock futures were trading higher, indicating a positive start to the day. However, all three major U.S. indexes closed lower last week, with the Dow Jones Industrial Average leading the losses. Most major Asian stock indexes were also down, except for Japan’s Nikkei, which saw a slight increase.
The Federal Reserve’s Monetary Policy Outlook
Investors are currently analyzing the Federal Reserve’s hawkish monetary policy outlook. The central bank plans to keep interest rates unchanged for now but expects to raise them by the end of 2023. This projection has caused some concern among investors, leading to a decline in stock markets.
Oil Prices and Inflation
Oil prices have been rising, with the global oil price benchmark Brent futures trading at around $92. This represents an increase of over 11% in the past 30 days. Rising oil prices have contributed to inflation concerns, as indicated by the latest consumer price index. The Federal Reserve believes that raising interest rates and maintaining them at a restrictive level may help control inflation.
The Federal Reserve will meet on November 1 to make its next decision on interest rates. Currently, there is a 74.6% chance that there will be no interest rate hike in November, according to the CME FedWatch Tool. S&P has also lowered its projection for China’s economic growth in 2023 due to limited fiscal and monetary easing policies.