Crypto markets cool, institutions keep buying

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📉 Crypto sideways – Bitcoin down 0.59%, Ethereum off 2%+ overnight.

💰 Institutions buying – BlackRock BTC ETF nears $100B AUM, and Luxembourg fund invests in BTC.
 

📆 Economic focus – CPI data on 15 Oct could give clues about the likelihood of another Fed rate cut.

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Crypto markets are broadly moving sideways this morning, with the total crypto market cap dipping slightly by 0.8% and Bitcoin (BTC) down 0.59%. The market has been quiet since the brief rally earlier this week, which also contributed to a slight downturn in the Fear and Greed Index, still in Greed, but a little less so. Ethereum (ETH) has pulled back more sharply, dropping over 2% overnight. US equity markets also saw declines as the US government shutdown continues.

Despite the fading rally, institutional investors are still buying. BlackRock’s IBIT BTC ETF is approaching $100 billion in assets under management, roughly 3% of all BTC in circulation. Meanwhile, a Luxembourg wealth fund announced a 1% allocation to Bitcoin, making it the first Eurozone country to invest in BTC.

Looking ahead, the US Consumer Price Index (CPI) data on 15 October will be a key indicator for markets, if it’s released on time considering the government shutdown. However, the Bureau of Labour Statistics is recalling some furloughed staff to ensure the publication of this crucial inflation data, which is essential for various economic decisions. Investors will be watching closely for signs that could influence expectations of another Fed interest rate cut at the end of the month. 

With Bitcoin near all-time highs and momentum fading, the big question is whether the rally will pick back up in the coming weeks.

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In the markets… 

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🌍 Total crypto market cap ↘️

The global crypto market cap is approximately $4.22  trillion, down 0.8% from this time yesterday. 

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🟠 Bitcoin (BTC) ↘️

Price: $121,194 down 0.59% in the last 24 h.
Daily high: $123,548
Daily low: $119,967

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📈 S&P 500  ↘️

SPY is currently down 0.28% since yesterday’s close. 

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📈 Nasdaq 100 ↘️

The Nasdaq 100 is down about 0.08% overnight. 

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🤑 Fear & Greed Index

The Crypto Fear & Greed Index stands at 64/100, in Greed.

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*Data is correct as at 10 October 0:38 GMT. 

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Cautionary Notes

‍‍It's definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.

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