|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
Why Shiba Inu, XRP, and Bitcoin Cash Are Falling Today
Oct 03, 2024 at 12:01 am
Cryptocurrencies plunged today as tensions ratcheted up in the Middle East. Investors and experts have also been questioning the path of interest rates.
Cryptocurrency prices fell on Friday as tensions flared in the Middle East and investors assessed the outlook for interest rates amid speculation that the Federal Reserve may not cut as aggressively as markets expect.
Shiba Inu (CRYPTO: SHIB) price fell about 6.5% this morning, while XRP (CRYPTO: XRP) and Bitcoin Cash (CRYPTO: BCH) prices fell 5.7% and 5%, respectively, by late morning.
Rising oil prices boosted the dollar
The escalating conflict in the Middle Iran is grabbing headlines and impacting crypto prices. Iran fired 200 ballistic missiles into Israel on Thursday, and Israel said it planned to send more troops into Lebanon in a “limited, localized” ground campaign against the Iranian militant group Hezbollah.
"Surging unrest across the Middle East propelled oil prices upward and reinforced the dollar's strength, casting a shadow over Bitcoin and other speculative investments," Chris Kline, chief operating officer and co-founder of Bitcoin IRA, told CNBC.
WTI Crude Oil prices rose nearly 2.9% by late morning, while the U.S. Dollar Index was also trading higher. That bodes poorly for cryptocurrencies, which are seen as an alternative to mainstream currencies like the dollar. Crypto has historically performed better with a weak dollar and floundered under a strengthening dollar.
In another concerning development, BlackRock (NYSE:BLK) CEO Larry Fink recently said publicly that he feels 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 could 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 on the sidelines of 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 what's currently priced in, it could bode poorly for crypto in the near term.
I didn't see much token-specific news this morning, but I did notice that crypto asset management firm Bitwise filed some initial paperwork 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 increased liquidity and exposure to their respective tokens.
Buy the dip?
I think it's clear that the conflict in the Middle East is taking 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'm 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. 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 intriguing. Spot ETFs previously led to big surges in the prices of Bitcoin and Ether.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- 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.
-
- 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.
-
- Meme Coin Watch: PEPE and FLOKI Among Biggest Losers
- Oct 03, 2024 at 04:35 am
- The substantial drop in the crypto market today caused most assets—including Ethereum and Bitcoin—price drops. This bearish trend has also had an impact on the meme coin market; tokens like PEPE and FLOKI have seen considerable drop.