Bitcoin, Ether Nurse Losses as Dollar Strengthens Ahead of U.S. Inflation Report
The crypto market showed little movement, with Bitcoin (BTC) trading near $61,000, down over 1.5% in 24 hours, and Ether (ETH) at $2,395, down 1.9%. Other cryptocurrencies like BNB and SOL also fell by 1%, while XRP decreased by 0.6%. The U.S. dollar index (DXY) rose to 102.97, marking a 2.7% increase since September 30. Traders now assign an 85% probability to a 25 basis point rate cut by the Fed on November 7, up from 65% a week prior. The September Fed meeting minutes revealed a divide among policymakers regarding the aggressiveness of rate cuts. Crypto sentiment has shifted to fear, contrasting with equity greed, attributed to the dollar's strength and bond attractiveness. The upcoming U.S. inflation report is expected to show a 0.1% monthly increase in the consumer price index (CPI). Hotter-than-expected CPI could halt rate cuts and increase risk aversion, though ING suggests limited market impact due to the Fed's labor market focus.
