Cryptos Weak As ECB's Hawkish Hike, U.S. Jobs Data Release Weigh

Despite relief from the Fed signaling a pause in its interest rate hikes, cryptocurrencies hovered below the flatline amidst gloom following the ECB’s hawkish stance and anxiety ahead of release of the crucial jobs data from the U.S. on Friday.

The European Central Bank hiking rates by 25 basis points and signaling more monetary tightening weighed on market sentiment. The ECB warned that the policy rates would be brought to levels sufficiently restrictive to achieve a timely return of inflation to the 2% medium-term target and would be kept at those levels for as long as necessary.

The U.S. Bureau of Labor Statistics would release data on non-farm payrolls and unemployment rate for the month of April on Friday morning. Markets expect the addition in jobs to fall to 180 thousand from 236 thousand in the previous month. The unemployment rate is seen rising to 3.6 percent, from 3.5 percent in March.

The focus on the jobs data stems from the fact that the Fed had in its recent meeting indicated that in assessing the appropriate stance of monetary policy, it would monitor the implications of incoming information including readings on labor market conditions. The Committee reiterating its strong commitment to returning inflation to its 2 percent objective whilst also acknowledging the robust job gains and low unemployment rate, also stirred risk aversion.

The consistent increase in interest rates by central banks worldwide which is seen jeopardizing the appeal of cryptocurrencies vis-à-vis safer assets like treasuries has been a major sway over the crypto marketplace. Worries about the stress in the U.S. banking sector exacerbating recessionary conditions also dampened sentiment in the digital asset marketplace. The Dollar Index, declining 0.10 percent to 101.30 also failed to lift sentiment in the crypto market space.

Overall crypto market capitalization is currently at $1.19 trillion, edging lower from $1.20 trillion a day earlier.

Despite the broad-based relief over the Fed’s hints of a potential pause, only 7 of the top 100 cryptocurrencies are trading with gains of 1 percent or more on a weekly basis. 9 of the top 100 cryptocurrencies have actually lost more than 10 percent in the past one week, whilst 15 have shed between 5 percent and 10 percent over the same period. 67th ranked Sui (SUI) has plunged more than 70 percent in the past week amidst the highly anticipated launch of the SUI mainnet on May 3.

Close to 10 percent of the top 100 cryptocurrencies continue to be loss making on a year-to-date basis.

Bitcoin (BTC) which dominates 47.2 percent of the overall crypto market traded between $29,488.16 and $28,694.04 in the past 24 hours. BTC is currently changing hands at $29,116.81, gaining 0.2 percent on an overnight basis and losing 0.4 percent on a weekly basis.

Ethereum which commands a crypto market share of 19.2 percent is currently trading at $1,902.15, gaining 0.13 percent in the past 24 hours. The leading alternate coin has shed 0.4 percent over the past seven days. Trading ranged between $1,915.87 and $1,868.63 in the past 24 hours.

4th ranked BNB (BNB), 6th ranked XRP (XRP), 7th ranked Cardano (ADA), 8th ranked Dogecoin (DOGE) and 9th ranked Polygon (MATIC), all lost less than 1 percent overnight. 10th ranked Solana (SOL) however lost 1.3 percent in the past 24 hours.

27th ranked Toncoin (TON) topped the price charts with an overnight rally of 2.1 percent.

48th ranked Stacks (STX) is the greatest laggard on an overnight basis, declining close to 6.7 percent. 37th ranked Lido DAO (LDO) also lost more than 6 percent.

Meanwhile, the legal battle between Coinbase and the U.S.SEC for clarity on the regulatory environment for digital assets has intensified. Paul Grewal, the Chief Legal Officer of Coinbase on Thursday tweeted that the Third Circuit court has issued a text-only order directing the SEC to file a response to Coinbase’s mandamus petition within 10 days. Coinbase, the petitioner has also been allowed 7 days from the date of filing of the response to file a reply.

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