Key Takeaways
- Crypto Market: Total market cap fell 3.5%; Bitcoin trades near $103,305.
- Stocks: Asian equities rise slightly; Dow hits record close.
- US Shutdown: Senate bill clears; House vote imminent, easing some market uncertainty.
- Investor Action: Caution advised in crypto; ETF inflows may signal stronger recovery.
Crypto Market Slips as Asian Stocks Gain
The global crypto market fell nearly 4% on Wednesday, even as Asian equities edged higher, fueled by optimism that the US government shutdown may soon end. Bitcoin alone has lost around $340 billion in market capitalization since early October, as large holders reduced positions and weak ETF inflows kept sentiment subdued.
Despite broader market gains, digital assets struggled. Bitcoin fell below its 200-day moving average, trading near $103,305, while Ether and XRP dropped 5.2% and 5.6%, respectively. Total crypto market capitalization declined to $3.56 trillion, highlighting persistent caution among traders.
US Shutdown Nears Resolution, Stocks React
While crypto faltered, traditional markets in Asia showed modest gains. The MSCI Asia ex-Japan index inched up 0.1% as the US House of Representatives prepared to vote on a bill restoring federal funding. The measure, already passed by the Senate, could end the longest shutdown in US history, which began October 1.
In overnight trading, the Dow Jones Industrial Average hit a record close with a 1.2% gain, while the Nasdaq slipped 0.3%, and S&P 500 futures remained steady. Limited economic data due to the shutdown included an ADP report indicating that private employers cut an average of 11,250 jobs weekly over four weeks ending October 25.
Weak Crypto Conviction Persists
Analysts caution that crypto’s recovery may lag behind equities. Open interest in Bitcoin perpetual futures fell sharply from $94 billion to $68 billion, while funding rates remained flat. ETF inflows in the US added only $1 million, signaling weak demand.
Also Read: Top 10 Undervalued Cryptos Ready to Skyrocket
“Market conviction in crypto remains low until on-chain accumulation or ETF inflows pick up,” said George Mandres, senior trader at XBTO Trading. The recent selling from large holders and corporate treasuries adds pressure, keeping Bitcoin below key resistance levels around $110,000.
Conclusion
While optimism around the US government shutdown bolsters equities, crypto markets continue to face selling pressure and weak inflows. Investors should watch ETF activity and technical support levels closely, as recovery in digital assets may lag traditional markets.
