Cryptocurrencies extend the rout, Bitcoin down -11%

Dhwani Mehta FXStreet

Having witnessed the biggest daily sell-off in four months, Bitcoin, the biggest and most traded cryptocurrency, extended losses by another 11% so far this Wednesday. The prices dipped briefly below the $ 10k mark in early Asia to refresh monthly lows at $ 9949, before finding some support to head back above $ 10500 levels.

Most of its best known counterparts also extended yesterday’s selling spiral, with Ethereum down 13%, Ripple losing 19% and Bitcoin cash down 12% on the day, according to the CoinMarketCap data.

The declines gathered momentum for the second straight session, as markets remain wary over the regulatory measures likely to be introduced by the Asian regulators, especially the South Korean and Chinese, to curb the speculation seen in the virtual currencies space.

On Wednesday, the China Securities Times quoted unnamed government sources, citing that the Chinese authorities are targeting crypto trading platforms in a further crackdown on cryptocurrencies. Meanwhile, South Korea’s Finance Minister said on Tuesday that banning trading in cryptocurrencies was still an option.

Meanwhile, the cryptocurrency market cap continues to get eroded, now seen at $ 503 billion versus yesterday’s $561.92 billion. More than $200 billion has been wiped off the value of global cryptocurrencies over the last two trading sessions.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD slides as US yields jump before pivotal CPI

The Australian Dollar ended Thursday’s session with a 0.80% loss against the US Dollar after US producer inflation exceeded estimates, triggering pricing for a more hawkish Federal Reserve. The AUD/USD trades at 0.7159 after reaching a peak of 0.7223.

USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold remains weak, retargets $4,350

Gold keeps the choppy price action on Thursday, now slipping back toward the $4,350 region per troy ounce amid the robust bounce in the US Dollar as well as rising US Treasury yields across the curve, particularly following US Producer Prices and ahead of Friday’s more relevant US CPI data.

Bitcoin holds steady on positive ETF flows despite short-term holders cashing in

Bitcoin's exchange-traded funds (ETF) demand regime has notably shifted, with 30-day net inflows reaching $21.9 billion, according to a Thursday post by CryptoQuant. The data suggests that the average Bitcoin held through spot ETFs is now in profit, with the realized price of the ETF cohort standing at roughly $72,000 to $73,000.

ECB recap: A hawkish hike despite downside growth risks

The European Central Bank (ECB) increased the Deposit Facility Rate to 2.50%, the Refinancing Rate to 2.65% and the Marginal Lending Facility to 2.90%, effective from September 16. The decision was accompanied by a clear warning that the outlook remains highly uncertain, with risks tilted to the upside for inflation and to the downside for growth.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.