👉Cryptocurrency markets were mixed in the European morning as a hawkish stance on the possibility of excessive rate cuts by the US Federal Reserve (Fed) sent the US dollar higher ahead of a key inflation report.
👉Bitcoin (BTC), the leading cryptocurrency by market value, traded near $61,000, slightly above its overnight low of $60,400 but still down more than 1.5% in 24 hours. Ether (ETH) saw similar price action, trading 1.9% lower at $2,395. Other major alternative cryptocurrencies, BNB and SOL, traded 1% lower, with XRP down 0.6%, according to CoinDesk data.
👉The dollar index (DXY), a gauge of the greenback's exchange rate against major fiat currencies, rose to 102.97, its highest since Aug. 16, bringing its cumulative gain since its Sept. 30 low of 100.18 to 2.7%.
💥Minutes from the Fed's September meeting, released on Wednesday, showed policymakers were divided on how aggressively the central bank should cut rates. "A majority of participants" favored a half-percentage-point cut, although some expressed concern about cutting too much, the minutes said.
“Crypto sentiment has returned to the fear zone (39), strengthening the contrast with 72 (greed) in equities,” Alex Kuptsikevich, a senior market analyst at FxPro, said in an email. “This dynamic is easily explained by the strengthening of the dollar and the increased attractiveness of bonds, reducing the institutional appeal of bitcoin.”
