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Investing.com-- Bitcoin stabilized after a whipsaw session on Wednesday as crypto markets were caught between heightened U.S.-China trade tensions and growing conviction that the Federal Reserve will cut interest rates in October.
The world’s largest crypto had fallen as far as $109,000 on Tuesday before recovering some ground, and edged 0.5% higher to $111,820 by 09:21 ET (13:21 GMT).
Bitcoin dented by US-China tensions, dovish Powell offers some support
Resurgent trade tensions between the U.S. and China were the biggest pain point for Bitcoin in recent sessions, with the crypto having slumped as low as $103,000 in a weekend flash crash.
While the coin did rebound sharply from initial losses, it remained well below a recent record high of more than $126,000.
Bitcoin and crypto markets took some support from dovish-leaning comments made by Federal Reserve Chair Jerome Powell on Tuesday.
Powell flagged a potential end to the Fed’s quantitative tightening activities, which struck markets as largely dovish. The Fed Chair also flagged growing uncertainty over the U.S. economy, especially amid an ongoing government shutdown.
Powell’s comments sparked increasing conviction that the Fed will cut rates in its end-October meeting. Markets are pricing in a 99.6% chance for a 25 basis point cut, up from a 97.4% chance seen last week, CME Fedwatch showed.
Coinbase invests in India’s CoinDCX at $2.5 bln valuation
Coinbase Global Inc (NASDAQ:COIN) said on Tuesday that it had invested an undisclosed amount in Indian crypto exchange CoinDCX, as part of its attempts to gain a greater foothold in India and the Middle East.
CoinDCX said separately that the investment valued the exchange at $2.45 billion, far higher than the sub-$1 billion valuation touted by reports earlier this year. The exchange also said that Coinbase was an investor in CoinDCX since 2020.
Earlier reports showed Coinbase was interested in acquiring CoinDCX. The U.S. crypto exchange was recently approved to offer services in India, but has largely lagged rivals such as Binance in gaining a foothold in the world’s biggest crypto userbase.
Recent data showed India led the world in crypto adoption, with over 100 million holders in the country as of end-2024.
Crypto ETFs snap back with $340mn in inflows after massive withdrawals
U.S. spot Bitcoin and Ethereum ETFs drew a combined $340 million in net inflows on Tuesday, rebounding after a sharp $755 million outflow the previous day in the wake of heavy crypto liquidations over the weekend.
Data from SoSoValue shows spot Bitcoin ETFs attracted $102.6 million, led by $132.67 million flowing into Fidelity’s FBTC. Ark & 21Shares and Bitwise products also saw inflows, while BlackRock’s IBIT shed $30.8 million.
Spot Ethereum ETFs brought in $236.22 million across six funds. Fidelity’s FETH led with $154.62 million in net subscriptions.
Crypto price today: altcoins recoup some losses
Broader crypto prices logged some gains on Wednesday, as risk appetite improved on Powell’s comments.
World no.2 crypto Ether rose 3.8% to $4,081.89, while XRP added 3.3% to $2.48.
Solana and Cardano climbed 5.1% and 2.9%, respectively, while BNB rose 2%.
Among meme tokens, Dogecoin and $TRUMP gained 2.5% and 1%, respectively.
(Ambar Warrick contributed to this report.)