Crypto Markets Gain as Fed Rate Hike Expectations Dim

Cryptocurrency markets are holding steady as expectations for a Federal Reserve rate hike in October continue to diminish. The decline in rate hike bets comes amid a series of disappointing economic reports from the U.S., including weaker-than-expected job openings, PCE inflation readings, and a surprise drop in the ISM manufacturing PMI. Additionally, the Fed's dovish remarks suggesting no rush for further rate increases have further dampened expectations.

The overall cryptocurrency market capitalization has risen by more than 1% overnight, reaching $2.93 trillion, with trading volumes surging by 71%. Bitcoin (BTC), the largest cryptocurrency, is trading around $86,364.52, up 1.3% overnight. Despite this gain, Bitcoin remains 32% below its all-time high of $126,198. The cryptocurrency has seen a 3.6% increase over the past week, with year-to-date losses narrowing to 1.3%. Bitcoin Spot ETF products in the U.S. reported net inflows of $190 million on Friday, led by the iShares Bitcoin Trust ETF (IBIT) with $158 million in inflows.

Ethereum (ETH) is trading at $2,719.33, up 0.8% overnight, but remains 45% below its all-time high of $4,953. Ethereum Spot ETF products experienced net outflows of $37 million on Friday. Other notable cryptocurrencies include BNB (BNB), which added 0.3% to $791.78, and XRP (XRP), which rallied 0.96% to $1.51. Solana (SOL) declined 0.76% to $120.74, while TRON (TRX) increased 0.18% to $0.3362.

Hyperliquid (HYPE) surged 3.3% to $93.05, and Zcash (ZEC) rallied 1% to $1,342.96. Despite these gains, both cryptocurrencies remain significantly below their all-time highs. The positive sentiment in the cryptocurrency market is tempered by cautious anticipation ahead of the release of the Federal Open Markets Committee minutes on Wednesday.