Crypto Markets Surge Amid Shutdown Shadow
Crypto markets moved positively on Thursday, with risk appetite holding up despite lingering US fiscal uncertainty. Bitcoin surged more than 2% to a 7-week high above $120,000, Ethereum rose more than 3% above $4,400, and Solana rose nearly 6% to $233. Expectations of a Fed rate cut this month kept Treasury yields lower and supported the dollar, supporting Bitcoin and large-cap coins. The delay in official data releases due to the shutdown has led market participants to weigh alternative signals—including private employment surveys—to gauge economic strength, keeping intraday volatility high.
On the flow side, institutional interest remains solid: crypto-based products/ETFs recorded steady inflows, while high derivatives open interest indicates increased trader participation. On the network, relatively strong stablecoin activity contributes to market liquidity and facilitates inter-coin rotation. However, volatility remains high; Rapid shifts in leveraged positions can amplify price movements, especially when mass liquidations occur.
Looking ahead, attention will be focused on communications from Fed officials, the release of alternative NFP data, and US regulatory developments that could impact institutional flows. If policy signals remain accommodative and the dollar doesn't strengthen sharply, the crypto uptrend is likely to continue. Conversely, a strengthening dollar, a hawkish surprise, or negative regulatory headlines could trigger a risk-off and a rapid correction. Risk management and disciplined position sizing remain crucial.
Source: Newsmaker.id
