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Cryptocurrency News Articles
Cryptocurrencies Plunge as Middle East Tensions Rattle Market
Oct 03, 2024 at 12:21 am
The escalating conflict in the Middle East is the big news shaking up the crypto market. Iran launched 200 ballistic missiles into Israel yesterday.
Cryptocurrency prices plunged on Friday as tensions flared in the Middle East and investors continued to assess the path of interest rates.
Shiba Inu (CRYPTO: SHIB) fell roughly 6.5% this morning, while XRP (CRYPTO: XRP) and Bitcoin Cash (CRYPTO: BCH) fell 5.7% and 5%, respectively.
Higher oil prices reignite the dollar: The escalating conflict in the Middle East is dominating the crypto market headlines. Iran launched 200 ballistic missiles into Israel on Thursday. Meanwhile, Israel said it will deploy more troops into Lebanon in a “limited, localized” ground invasion against the Iran-backed militant organization Hezbollah.
"Surging unrest across the Middle East has propelled oil prices upward and reinforced the dollar's strength, casting a shadow over Bitcoin and other speculative investments,” said Chris Kline, chief operating officer and co-founder of Bitcoin IRA, according to CNBC.
The price of WTI Crude Oil jumped nearly 2.9% by late morning, while the U.S. Dollar Index was also trading higher. That bodes poorly for cryptocurrencies, which are billed as an alternative to mainstream currencies like the dollar. Cryptocurrencies have historically performed better with a weak dollar and floundered under a strengthening dollar.
In another development, BlackRock (NYSE:BLK) CEO Larry Fink recently said publicly that he thinks the market is pricing in too many interest rate cuts. According to CME Group's FedWatch tool, traders are betting that the Fed will cut its benchmark federal funds rate by another 75 basis points this year and potentially lower it to 3% or below by the end of 2025.
"The amount of easing that's in the forward curve is crazy,” Fink told Bloomberg at a conference in Berlin. "I do believe there's room for easing more, but not as much as the forward curve would indicate."
Lower interest rates tend to lead to a weaker dollar, so if there are fewer cuts than the market is currently pricing in, that could spell trouble for crypto's near-term outlook.
I didn't see too much token-specific news this morning, but I did notice that crypto asset management firm Bitwise filed some initial paperwork indicating that it would like to set up an exchange-traded fund that tracks XRP, which was created by the company Ripple. According to CoinDesk, Bitwise took the first step in the ETF process by filing a trust entity in Delaware. This would be a positive catalyst for XRP. Spot Bitcoin and Ethereum ETFs have already increased the liquidity and exposure of their respective tokens.
Buy the dip? It's clear that the conflict in the Middle East has taken over this morning. I think XRP would normally be up on the news of a potential ETF, but the sector can move together, and the trajectory of interest rates and the dollar is踽 overshadowing everything else.
I am not a huge fan of altcoins due to their inability to stand out from one another and would prefer to buy the dip on Bitcoin and Ether (CRYPTO: ETH). However, I do see some potential in XRP. XRP's potential use case of improving cross-border payments is compelling and the token also has a limited supply like Bitcoin, albeit a much higher amount. The potential of an XRP ETF is also very interesting. Spot ETFs previously led to big surges in the prices of Bitcoin and Ether.
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- Is Yeti Ouro (YETIO) the Next Dogecoin (DOGE)?
- Oct 03, 2024 at 04:35 am
- September has been a productive month for Dogecoin (DOGE) with significant gains analysts predicting potential for more significant gains. With DOGE recently rising by 19.36% over the past month, analysts are closely watching the market for signs of a further rally.
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- Is Yeti Ouro (YETIO) the Next Dogecoin (DOGE)?
- Oct 03, 2024 at 04:35 am
- September has been a productive month for Dogecoin (DOGE) with significant gains analysts predicting potential for more significant gains. With DOGE recently rising by 19.36% over the past month, analysts are closely watching the market for signs of a further rally.
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- Meme Coin Watch: PEPE and FLOKI Among Biggest Losers
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