Cryptocurrency Fluctuates, Investors Wary of Impact of US Government Shutdown
Prices of major cryptocurrencies fluctuated on Tuesday, with Bitcoin (BTC) trading slightly higher around $114,000 after weakening earlier in the session. Market sentiment was weighed down by the growing risk of a US government shutdown, which could potentially delay the release of important employment data this week. This macroeconomic uncertainty prompted some investors to turn to traditional safe-haven assets like gold and silver, although crypto held firm thanks to inflows from institutions.
Ethereum (ETH) briefly dipped slightly below $4,200, although it was supported by increased activity on layer-2 networks and growing demand in the DeFi sector. Other altcoins showed mixed movements, with Solana (SOL) falling nearly 1% to $210, driven by the adoption of new decentralized applications, while XRP fell 0.9% due to selling pressure from retail investors. Short-term sentiment was influenced by a combination of external factors, ranging from a weakening US dollar to growing speculation of a Federal Reserve interest rate cut.
Overall, the crypto market continues to demonstrate resilience amid global turmoil. The prospect of institutional adoption remains a key driver, with recent reports showing net inflows into spot Bitcoin ETFs for five consecutive days. However, analysts warn that volatility could increase ahead of the release of US jobs data, which will be a key indicator of the direction of the Fed's monetary policy and risk sentiment in the crypto market.
Source: Newsmaker.id
