What happened?
The crypto market experienced a slight increase with around 80 of the top 100 coins appreciating over a 24-hour period. Consequently, the overall cryptocurrency market capitalization rose by 0.5%, making its current standing at $3.94 trillion. The total crypto trading volume leveled at $94.3 billion, which is relatively lower than the past few days.
Who does this affect?
This development, particularly the cuts on the U.S. Federal Reserve rate, can impact various entities involved in the crypto market. A 25 basis-point cut could improve liquidity conditions and enhance risk sentiments across the crypto market. However, an aggressive move on rate cuts can trigger recession fears and affect the bullish sentiment. Additionally, the report indicates outflows from US BTC spot ETFs valued at $160.18 million and US ETH ETFs at $446.71 million.
Why does this matter?
This development matters as it indicates the volatility and potential growth of the crypto market. The shifts in the market, such as the appreciation of the majority of the top 100 coins, indicate potential investment opportunities. Conversely, the outflows from ETFs and potential effects of Federal reserve rate cuts highlight potential risks. Therefore, investors and businesses need to consider these factors when navigating their strategies within the crypto market.