Cryptos Rise Amidst Banking Sector Rating Downgrades

Cryptocurrencies gained 0.80 percent in the past 24 hours amidst fresh fears related to the banking sector in the U.S. Close on the heels of the sovereign rating downgrade of the U.S. by Fitch Ratings, rating agency Moody’s downgraded 10 small & mid-sized banks in the U.S. It also warned of potential rating downgrades for 6 bigger banks including Bank of New York Mellon and US Bancorp.

Disappointing trade numbers from China that triggered an easing in bond yields also supported crypto market sentiment. Data released late on Monday showed China’s exports declining 14.5 percent and imports dropping 12.4 percent in the month of July. In response, ten-year bond yields in the U.S. declined more than 1.7 percent overnight, reducing the opportunity cost of holding non-interest-bearing cryptocurrencies.

Consumer-price and producer-price inflation readings from China are due later in the day and markets are keen to know the extent of disinflation, the readings portend.

The surge in the U.S. dollar and the Dollar Index however capped gains in the dollar-denominated prices of cryptocurrencies. Dollar Index, a measure of the dollar’s relative strength gained 0.67 percent overnight to trade near 102.7.

Expectations of another pause by the Fed, as implied by the CME FedWatch tool increased to 87.5 percent, from 85.0 percent a day earlier and 82.0 percent a week earlier.

New York-based payments giant PayPal’s announcement regarding issuance of a stablecoin also supported crypto market sentiment.

Overall crypto market capitalization rallied to $1.17 trillion, from $1.16 trillion a day earlier.

Bitcoin rallied to $29,351.53, adding 1.3 percent in the past 24 hours and 1.7 percent in the past week. Bitcoin’s dominance of the market also increased to 48.84 percent from 48.74 percent a day earlier.

Ethereum gained 0.55 percent in the past 24 hours. It is currently changing hands at $1,835.06. Ethereum’s dominance of the market has however slipped to 18.87 percent from 18.96 percent a day earlier.

4th ranked BNB (BNB) added 0.67 percent in the past 24 hours. BNB is the highest-ranking crypto to trade with losses on a year-to-date basis, having shed close to half a percent in 2023.

5th ranked XRP (XRP) gained 1.5 percent overnight but is yet to recover losses of more than 9 percent incurred over the past week. Despite a partially favorable win in the lawsuit against SEC, the cryptocurrency has gained only 84 percent on a year-to-date basis which is much lower than the year-to-date gains made by Solana (SOL).

7th ranked Dogecoin (DOGE) added 0.30 percent in the past 24 hours. DOGE has however dropped 4.1 percent in the past week.

8th ranked Cardano (ADA) is trading in a mildly green zone but is still saddled with weekly losses of close to 4 percent.

9th ranked Solana (SOL) jumped 1.9 percent overnight and is the best performing crypto among the top 15 cryptocurrencies in 2023.

10th ranked Tron (TRX) is trading near the flatline. Despite gains of close to 2 percent made in the past week and 3 percent in the past 30 days, the cryptocurrency has gained close to 40 percent in 2023.

For More Cryptocurrency News, visit rttnews.com

Source: Read Full Article