Bitcoin (BTC) and Ethereum (ETH) saw a slight recovery from their overnight lows but remained in the red over a 24-hour period. The crypto market was stagnant during the European morning as a strong US dollar weighed on investor sentiment. A hotter-than-expected US inflation report could weaken the case for rate cuts by the Federal Reserve, which may contribute to the dollar's strength. The dollar index reached its highest level since August, indicating increased demand for the US currency. Traders have reassessed their expectations for rate cuts following the blowout nonfarm jobs report, which showed a strong US labor market. The minutes from the September Fed meeting revealed disagreements among policymakers on the extent of rate cuts, with some favoring a larger cut but expressing reservations. The increased attractiveness of bonds and the appreciation of the dollar have reduced institutional interest in bitcoin, contributing to the current bearish sentiment. Traders are awaiting the US inflation report for potential market volatility, with hotter-than-expected results possibly strengthening calls to halt rate cuts and leading to risk aversion. However, ING believes that the CPI will not have a significant impact on market positioning as the Fed's focus has shifted to the labor market.



Other News from Today