Crypto recovery underway after last week's slump

Chris Beauchamp IG

Market snapshot – crypto prices stage a recovery

Last week’s across-the-board rout in crypto assets was the most dramatic we have seen in weeks, with the liquidation on Friday and Saturday the largest on record in dollar terms at over $19 billion. The relentless move lower culminated on Saturday as bitcoin returned to $110,00 and Ether tumbled to a two-month low. But signs of a recovery have been seen in early trading, as the shock of Friday’s Trump post on Truth Social fades and signs of détente emerge in the US-China trade spat.

In the news

The UK has lifted its ban on crypto exchange-traded notes (ETNs), allowing retail investors to buy bitcoin and ether ETNs for the first time through regulated exchanges such as the London Stock Exchange. Such a move marks another step in the broader adoption of crypto assets as another means of wealth-building for the long-term, though the slow pace of regulation will act as a brake in the short-term.

What we’re watching

The slump in stocks has also been reversed to an extent in early Monday trading; much now depends on whether Trump remains focused on the Middle East and leaves China on the back burner for the time being. Earnings season gets underway in earnest too, as US banks report, which will be key for risk appetite in the near-term for both stocks and cryptocurrencies. After the magnitude of the falls in crypto prices, signs of renewed appetite via increased inflows into the space will be closely scrutinised.

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Chris Beauchamp

EUR/USD looks vacillating above 1.1800

EUR/USD alternates gains with losses in the low-1.1800s on Wednesday in a context of modest gains in the Greenback. Meanwhile investors continue to assess the latest advanced inflation data in the euro area and the lower-than-expected weekly ADP figures on the US calendar. Later in the day, all the attention should be on the release of the US ISM Services.

GBP/USD keeps the bid bias above 1.3700

GBP/USD builds on Tuesday’s gains, advancing for the second day in a row and reclaiming the 1.3700 barrier and above on Wednesday. Furthermore, Cable’s uptick comes despite decent gains in the Greenback ahead of the BoE’s Super Thursday.

Gold extends the rebound above $5,000

Gold picks up further pace and retests the area above the key $5,000 mark per troy ounce on Wednesday. The precious metal’s extra advance comes despite the firmer US Dollar and rising US Treasury yields across the curve, while fresh geopolitical effervescence appears to support the metal’s improvement.

Crypto Today: Bitcoin, Ethereum, XRP tick up despite macro uncertainty, retail exodus

Bitcoin rises above $76,000 following an extended decline to $72,946 the previous day as Fed-related headlines keep investors on edge. Ethereum advances toward the $2,300 hurdle amid low retail interest, with futures Open Interest falling to $26.3 billion.

Should investors abandon AI as software stocks slide?

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Ripple stabilizes amid mixed signals as ETF inflows resume despite low retail activity

Ripple hovers around the $1.60 pivotal level at the time of writing on Wednesday, reflecting stable but weak sentiment across the crypto market. Intense volatility triggered a brief sell-off on Tuesday, driving the remittance token to pick up liquidity at $1.53 before recovering to the current level.