|

Cryptocurrency recovery overshadowed by precious metals

Cryptocurrencies left far behind as precious metals surge

While cryptocurrencies are higher this morning, the rise pales in comparison with the gains in precious metals. While silver and gold have smashed through totemic levels, cryptocurrencies have struggled to get any attention at all, languishing near late-2025 lows after a string of losses over the last two weeks. Compared with previous routs, this decline in cryptocurrencies is quite sedate, which perhaps accounts for the lack of investor attention.

FCA moves forward with crypto rules

It has been encouraging to see further progress on the FCA’s consultation, with the September target for applications now firmly in sight. While the chatter around the decline of the London stock exchange has eased for now, it is still important for UK regulators to push forward with new measures in order to remain at the forefront of the cryptocurrency industry.

What we’re watching – Earnings, Fed, and Yen intervention

It has been an action-packed month, but the newsflow doesn’t stop this week, as the Fed releases its latest decision and the first Magnificent 7 stocks report earnings. In addition, markets are on watch for intervention to prop up a weakening yen, something that is likely to cause ructions across markets; while it has been a quiet start to the year, and a poor one for cryptocurrencies, the parabolic moves in precious metals and worries about high stock market valuations should see funds reallocated to cryptocurrencies. These rebalancing flows could help start a new leg higher for the asset, should the right catalyst arrive.

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

More from Chris Beauchamp
Share:

Editor's Picks

Zcash Price Forecast: ZEC declines as US inflation surprise offsets fresh ETF inflows

Zcash is trading in the red, extending its previous day’s roughly 6% losses as the broader cryptocurrency market falls on rising US inflation. The US Consumer Price Index print came in higher than expected, at an annual increase of 3.7% versus the expected 3.6%, raising concerns about inflation and rate hikes.

Ripple and Stellar outlook: XRP and XLM extend losses as US inflation data weighs in

Ripple and Stellar extend their losses on Thursday as bearish momentum builds, having corrected over 7% and 11% so far this week. XRP and XLM both slip below key support zones, indicating weakening technical structure.

Bitcoin falls on hot CPI: Why $80,000 support matters

Bitcoin's most critical level to watch is near $80,000 as September's hot inflation reading pressures the crypto market, according to Glassnode. The top crypto declined within minutes of the September CPI release, which showed a 3.7% annual increase in headline inflation, above forecasts of 3.6%. Core inflation, which excludes food and energy prices, came in at 2.6%.

Ethereum Price Forecast: ETH falls below $2,500 as hot CPI raises Fed hike odds
Ethereum (ETH) extended its decline below $2,500 on Wednesday after a hotter-than-expected US inflation print renewed selling across the crypto market. At the time of writing, the top altcoin trades near $2,430, down 3.1% in the past 24 hours. The US Consumer Price Index (CPI) for September rose 0.6% monthly, in line with market forecasts and up from a 0.4% increase in August.
Bitcoin: Uptober or Rektober?
Bitcoin (BTC) price is down over 4% so far this week, trading below $83,000 at the time of writing on Friday as mounting selling pressure threatens to derail the seasonal “Uptober” rally. Profit-taking, a surge in long liquidations and weakening demand from institutional investors are weighing on BTC.