Key Fed Inflation Rate Released, Here’s Crypto’s Reaction
On Thursday, October 31, the U.S. Commerce Department released key inflation data for September, showing a slight increase to 2.1%. This figure brings inflation closer to the Federal Reserve’s target, indicating a potential shift in monetary policy. The personal consumption expenditures (PCE) price index also rose by 0.2% on a seasonally adjusted basis for the month, with the 12-month inflation rate reaching 2.1%, in line with expectations. Notably, core inflation climbed to 2.7%, up 0.3% from the previous month.
Crypto Market Response
As investors digest this economic data, the cryptocurrency market has experienced declines across various coins. In the past 24 hours, top cryptocurrencies like Bitcoin, Ethereum, Pepe, Chainlink, Bonk, and WIF have seen their values drop by 1.7% to 7%. This reaction suggests that market participants are closely monitoring the potential impact of the Fed’s upcoming decisions on the broader financial landscape.
Bitcoin vs. Ethereum: New Coinbase Q3 Report Reveals Real Winner
According to the latest Q3 report from Coinbase, the leading cryptocurrency exchange, Bitcoin has continued to outperform Ethereum in trading volume and transaction revenue. Bitcoin’s trading volume on the platform rose by 2% to 37%, while Ethereum’s volume remained unchanged at 15%. In terms of revenue, Bitcoin’s share increased from 31% to 35% over the quarter, while Ethereum saw a slight decline to 16%.
Market Dynamics
Bitcoin’s dominance in both trading volume and revenue underscores its enduring popularity and strong market presence. While Ethereum remains a favorite among crypto enthusiasts, concerns about its relevance in the current market cycle persist. At the time of writing, Bitcoin is trading at $70,752, down 1.56% over the past 24 hours, while Ethereum is priced at $2,558, down 2.29% over the same period.
XRP on Verge of Reaching Dangerous Support Level
XRP, one of the worst-performing cryptocurrencies in recent months, is approaching a critical support level at $0.5185. The asset has struggled to gain market momentum and establish a stable base, with declining trading volume indicating waning investor interest. XRP’s price movement has been weak compared to other assets, and it has failed to maintain key moving averages, signaling potential downward pressure.
Analysis
The latest economic data, including the Fed’s inflation figures and Coinbase’s Q3 report, offer valuable insights into the current state of the financial markets and the cryptocurrency industry. Investors should pay close attention to these developments as they could impact asset prices and market sentiment in the coming weeks.
For those new to finance, understanding the implications of inflation rates, trading volumes, and support levels is crucial for making informed investment decisions. By staying informed and analyzing market trends, individuals can better navigate the complexities of the financial world and secure their financial futures.