TradingEconomics reports gold near $4,300/oz, up ~6% on the month and over 60% year‑on‑year, as multiple Fed cuts, expectations of further easing, and safe‑haven demand drive ETF inflows and central-bank buying. Copper has also climbed to around $5.3/lb, near a 19‑week high on short covering and the longer‑term energy‑transition story, underscoring how capital is rotating toward real‑asset inflation hedges while crypto trades more like a high‑beta risk asset in the current risk‑off tape.
Showing posts with label FED. Show all posts
Showing posts with label FED. Show all posts
Crypto majors extend post-Fed pullback as macro risk keeps pressure on risk assets
Bitcoin (~$85.9K, -2.5%) and Ethereum (~$2.95K, -3.6%) are falling for a fourth straight session, continuing the retreat that began after last week’s Fed rate cut and amid renewed anxiety over 2026 policy paths. Reuters and Yahoo Finance note that traders are de-risking ahead of a ‘data dump’ of delayed U.S. jobs, retail sales and inflation figures that could shift rate-cut expectations.
Risk-off tone and central bank week pressure Eth and majors
ETH is around $2,940, off about 4%, with CoinDesk noting fading post-Fed demand and low leverage as traders de-risk into a packed week of U.S. releases plus BoJ, BoE and ECB decisions that could tighten global liquidity, a key driver for crypto valuations.
Market waiting for a catalyst as traders eye dense macro calendar
Across the coverage, from CoinDesk’s Daybook to Investing.com’s morning brief, commentators describe a crypto market stuck in a choppy, range-bound consolidation. With U.S. nonfarm payrolls, CPI, PMI readings, Fed speeches and a potentially hawkish Bank of Japan decision ahead, most participants are staying sidelined, leaving prices vulnerable to sharp moves in either direction once fresh data hits.
Macro backdrop: Fed cuts done for now, BOJ/ECB/BoE in focus
Despite the Fed’s third rate cut of 2025 and a softer dollar, crypto has failed to mount a sustained relief rally, suggesting the bullish impulse from easier policy is fading. News from Investing.com, Yahoo Finance and FXStreet stress that this week’s U.S. jobs and inflation prints plus the Bank of Japan’s widely expected hike—historically associated with BTC drawdowns—are keeping traders defensive across digital assets.
Broader crypto market under pressure as macro tailwinds fade
Ethereum, XRP and Solana are all down 1%–2% today, echoing recent CoinDesk data showing a 5.7% weekend drop in BTC and a roughly 7% slide in the CoinDesk 20 Index as hawkish signals from the Bank of Japan and a more cautious global rate-cut outlook sap risk appetite (CoinDesk, Bloomberg). The Fed’s ‘hawkish cut’ and fading expectations for aggressive easing into 2026 are curbing the monetary-policy tailwind that powered crypto earlier in the year, keeping traders defensive into a data-heavy week with U.S. jobs, CPI and retail sales on deck (Sources: DailyForex, Yahoo Finance).
Fed’s ‘hawkish cut’ and fading global easing momentum weigh on crypto sentiment
The Fed’s 25 bp rate cut, widely seen as hawkish with limited scope for further easing, triggered a ‘buy the rumor, sell the news’ reaction in Bitcoin according to Forbes and AMBCrypto. Bloomberg notes rich‑world rate‑cut momentum is stalling, reducing the prospect of a sustained liquidity tailwind that previously supported digital assets.
Bitcoin pulls back toward $90K as crash fears meet quiet institutional dip‑buying
BTC is down about 1% on the day near $89–90K, extending a ~30% drawdown from its October high around $126K amid extreme‑fear sentiment and warnings of a possible deeper correction after the Fed’s rate cut. At the same time, data from Glassnode and ETF flow trackers show digital-asset treasuries and U.S. spot ETFs steadily accumulating BTC, which analysts say could help defend the $90K region even if volatility rises.
Macro backdrop: Fed cut, strong dollar, and BOJ drama keep crypto in ‘risk-on probation’
The Fed’s 25 bp rate cut and record-high global M2 have historically favored risk assets, but Yardeni Research notes the U.S. dollar still dominates global finance and carry trades, limiting a clean tailwind for crypto. Additional uncertainty around a potential BOJ rate hike and rising geopolitical tensions has left traders cautious, with several strategists, including CMC’s research head, now eyeing Q1 2026 as the more likely window for the next broad-based crypto bull leg.
Macro cross‑currents cap crypto upside
The Fed’s quarter‑point cut paired with guidance for fewer future cuts and Bloomberg’s reporting on fading global easing momentum have kept risk appetite in check. At the same time, expectations that the Bank of Japan will hike to a 30‑year‑high rate are threatening yen carry trades, a dynamic CoinDesk warns could weigh further on Bitcoin and broader digital assets.
Macro and policy overhangs weigh on crypto risk-taking
CoinDesk flags the Bank of Japan’s plan to lift rates to a 30‑year high as another threat to Bitcoin, since a stronger yen can unwind leveraged carry trades that have fed into crypto. In Washington, progress on a U.S. crypto market‑structure bill may slip into January, extending regulatory uncertainty just as markets digest hawkish central‑bank signaling and a tech‑led equity pullback that has reinforced a cautious stance toward high‑beta digital assets.
Bitcoin slips below recent highs as macro jitters persist
Bitcoin trades near $90,094, modestly lower on the day after a sharper Friday drop below $90K that CoinDesk tied to AI-bubble worries in tech stocks and hawkish signals from the Bank of Japan. Analysts warn that rising Japanese yields and a stronger yen could pressure leveraged crypto carry trades even as the Fed turns more dovish.
Risk-off sentiment tied to AI and tech weighs on Bitcoin
Coindesk reports that a 10% drop in Broadcom and broader concerns over AI-related overvaluation dragged the Nasdaq and crypto-exposed equities lower, spilling into BTC, which recently fell from record highs near $126K to about $90K. Fed official Goolsbee signaling openness to more cuts than the median for 2026 underscores macro uncertainty, adding to volatility rather than triggering a clean ‘risk-on’ bid.
Macro backdrop: dovish Fed and softer dollar support long-term crypto thesis
TradingEconomics and Yahoo Finance report gold near record highs and the dollar index hovering near multi-week lows after the Fed’s third 25 bp cut and new T-bill purchases. While today’s tape is risk-off for crypto, the combination of easier Fed policy and added dollar liquidity is seen as supportive for longer-term Bitcoin upside in on-chain valuation work from Bitcoin Magazine.
Macro backdrop: Dovish Fed and softer dollar support hard assets, not crypto
The Fed’s third 25 bp cut and plans to buy $40B/month in T‑bills have weakened the dollar toward two‑month lows and fueled expectations of further easing in 2026 (Trading Economics, FXStreet, Reuters). This has propelled gold back toward record highs above $4,300/oz and kept copper elevated, while crypto has decoupled short term as investors rotate toward metals and away from speculative tech and digital assets (Investing.com).
Bitcoin hovers near $90K after Fed cut, stays rangebound
BTC is around $89.9K, down ~2.8% on the day, as traders digest the Fed’s third 25-bps rate cut and cautious guidance. Articles from Investing.com, Bloomberg and CoinDesk note that easier policy and a softer dollar have not yet translated into a clean upside breakout, with volatility and momentum both subdued.
Macro backdrop: dovish Fed supports metals more than crypto
The Fed’s cut and new $40B/month T-bill purchases have driven gold near $4,275/oz and silver to record territory, according to Investing.com and TradingEconomics. Lower real yields and a weaker dollar are clearly benefiting precious and industrial metals, while Reuters and CoinDesk emphasize that crypto remains under pressure as investors favor traditional safe havens and equities.
Derivatives and ETF flows keep crypto sentiment cautious
CoinDesk and Coinbase data point to prior weeks’ heavy BTC and ETH ETF outflows, large derivatives liquidations, and a ‘volatility meltdown’ that have left retail sidelined and whales as marginal buyers. This overhang, plus ongoing fears around crypto-treasury stocks like MicroStrategy flagged by Reuters, is limiting the impact of the Fed cut on spot prices.
Token-specific narratives: XRP DeFi expansion, memecoins stall
CoinDesk notes wrapped XRP arriving on Solana and Ethereum, expanding Ripple’s footprint into DeFi just as XRP pulls back with the broader market. At the same time, Dogecoin is stuck near $0.14 with Coindesk highlighting that even aggressive Fed easing has failed to ignite a fresh memecoin rally, underscoring how macro fatigue is capping speculative appetite.
Fed’s ‘hawkish cut’ boosts gold and weakens dollar, but crypto shrugs
The Fed’s third 25 bps cut and cautious forward guidance pushed the dollar index toward seven-week lows and nudged 10-year yields toward the low-4% area, powering gold back above $4,270/oz and copper higher as well (Trading Economics, Investing.com). In contrast, Bitcoin and Ethereum failed to rally on easier financial conditions, with CoinDesk noting that crypto remains in a short-term bearish trend despite macro tailwinds.