Round up of today’s market news

North American News

Stocks Tank as Big Tech and Semiconductors Lead Decline

The US stock market struggled on Tuesday, closing at the day’s lows as a wave of selling hit major sectors. Top indices posted notable losses, with technology stocks and semiconductors leading the slide. Microsoft and Nvidia tumbled 5.8% and 4.3%, respectively, following earnings reports that failed to reassure investors.

Market Closing Stats:

• S&P 500: -108 points (-1.9%)
• Nasdaq Composite: -2.8%
• Russell 2000: -1.2%
• Dow Jones: -0.8%

Apple’s Earnings Highlights

Apple (AAPL) reported solid Q3 results but faced a 2% decline during trading, with shares down an additional 1% after hours.

• GAAP EPS: $0.97, affected by a $10.2B tax charge from an EU decision
• Adjusted EPS: $1.64 vs. $1.60 est., marking a 12% YoY increase
• Total Revenue: $94.9B, a new September quarter record, up 6% YoY
• iPhone Revenue: $46.22B vs. $45.47B est.
• Services Revenue: All-time high at $24.97B
• Dividend: $0.25/share, payable on November 14
• Outlook: New iPhone 16, Apple Watch Series 10, and Apple Intelligence positions Apple strongly for the holiday season

Amazon’s Blockbuster Earnings

Amazon (AMZN) surpassed estimates, lifting its shares $10 to $198.

• EPS: $1.43 vs. $1.14 est.
• Revenue: $158.9B, up 11% YoY
• Q4 Outlook: Forecasts net sales between $181.5B – $188.5B, with operating income projected at $16B – $20B

Other Noteworthy Earnings

• Intel (INTC): Reported Q3 revenue of $13.28B, beating estimates, but missed on EPS with a loss of -$0.46, weighed by $15.9B in impairments.

Sector Breakdown:

• Technology: The hardest-hit sector, logging a 3.6% decline, dragged down by Microsoft and Meta Platforms.
• Consumer Discretionary: Dropped 1.8% as mega caps and earnings-related declines in Aptiv, MGM Resorts, and eBay weighed on the sector.
• Semiconductors: The PHLX Semiconductor Index plunged 4.0% as Monolithic Power led declines with a 17.5% drop.

Economic Data Snapshot

Labor Market: Initial jobless claims fell to 216K, while the Employment Cost Index increased 0.8% in Q3, signaling a slower pace in wage inflation.
Inflation: The core PCE Price Index rose 0.3% in September, holding steady at 2.7% YoY, hinting at persistent inflation pressures.
Consumer Metrics: Personal income and spending rose 0.3% and 0.5% MoM, respectively, highlighting resilient consumer activity.

Rate Outlook: Market expectations for a rate cut remain stable, with the FedWatch Tool reflecting a 96.7% probability of a 25 basis point cut at the next FOMC meeting.

Tomorrow’s Key Report: U.S. Jobs Data

Expectations:

• Non-farm payrolls: +113K (range: 0K to 200K)
• Private payrolls: +90K
• Unemployment rate: 4.1%
• Avg hourly earnings: +4.0% YoY, +0.3% MoM

US September PCE core inflation +0.3% vs +0.3% expected

• Highlights of the US September PCE report:

• Prior m/m +0.1%
• Unrounded core PCE was +0.254%
• Core PCE +2.7% y/y vs +2.6% expected
• Headline inflation PCE +2.1% y/y vs +2.1% expected (Prior +2.2, revised to +2.3%)
• Deflator +0.2% m/m vs +0.2% expected
• Unrounded +0.175% m/m vs +0.0907% prior

Consumer spending and income for August:

• Personal income +0.3% vs +0.3% expected. Prior month +0.2%
• Personal spending +0.5% vs +0.4% expected. Prior month +0.2% (revised to +0.3%)
• Real personal spending +0.4% vs +0.1% prior (revised to +0.2%)

US initial jobless claims 216K vs 230K estimate

• The weekly initial and continuing jobless claims

• Prior week initial claims 227K revised to 228K
• Initial jobless claims 216K vs 230K estimate
• 4-week MA of initial jobless claims 236.50 versus 238.75K last week
• Prior week continuing claims 1.897M revise to 1.888M
• Continuing claims 1.862M vs 1.885M estimate
• 4-week MA of continuing claims 1.869M vs 1.8585M last week.

The largest increases in initial claims for the week ending October 19 were in Florida (+4,501), Kansas (+304), Wisconsin (+222), Hawaii (+103), and Idaho (+101), while the largest decreases were in New York (-2,785), North Carolina (-2,767), California (-2,012), Texas (-1,865), and Georgia (-1,852).

US Employment cost for Q3 0.8% versus 0.9% estimate

• US employment cost indices for Q3 2024

• Prior quarter 0.9%
• employment cost index Q3 0.8% versus 0.9% estimae
• employment wages QoQ 0.8% versus 0.9% last quarter
• employment benefits 0.8% versus 1.0% last quarter

HIGHLIGHTS from the BLS

• Civilian workers’ compensation costs rose by 0.8% (seasonally adjusted) from June to September 2024.
• Over the 12-month period ending in September 2024, civilian workers’ compensation costs increased 3.9%, down from 4.3% in September 2023.
• Wages and salaries for civilian workers rose 3.9% over the past year, compared to a 4.6% increase in the previous year.
• Benefit costs for civilian workers rose 3.7% over the year, compared to 4.1% in September 2023.
• Private industry workers’ compensation costs increased 3.6% over the year, down from 4.3% in September 2023.
• Wages and salaries in private industry rose 3.8%, compared to 4.5% the prior year.
• Benefit costs in private industry rose 3.3% over the year, compared to 3.9% the previous year.
• Inflation-adjusted wages and salaries for private industry increased 1.2% over the past 12 months.

US October Challenger layoffs 55.60k vs 72.82k prior

• Latest data released by Challenger, Gray & Christmas, Inc. – 31 October 2024
• Prior 72.82k

Barclays looking for a 125K nonfarm payroll headline

• Unemployment rate forecast to increase to 4.2%

Barclays: What We Expect from the US October Jobs Report on Friday

Synopsis:

Barclays forecasts a deceleration in October’s nonfarm payrolls to 125k, down from September’s 254k, with employment impacted by the Boeing strike and recent hurricanes. Wage growth is expected to remain steady, while the unemployment rate may tick up due to temporary disruptions.

Key Points:

• Nonfarm payrolls projected to rise by 125k, with private payrolls increasing by 100k as labor disruptions impact the data.
• Average hourly earnings growth anticipated at 0.4% m/m (4.1% y/y), with the workweek expected to decline slightly to 34.1 hours.
• Unemployment rate forecasted to increase to 4.2%, partly due to temporary effects from strikes and hurricanes.

Conclusion:

Barclays expects October’s jobs report to reflect temporary slowdowns from external factors, with a moderate payroll increase and a slight uptick in the unemployment rate. Despite these impacts, wage growth remains steady, indicating underlying resilience in the labor market.

Fed to cut by 25bp next week – don’t have have enough conviction to hold rates unchanged

• Bank of America on the upcoming jobs report and the Federal Reserve reaction function

Snippet from Bank of America on what to watch in the NFP and FOMC.

• forecast a 25bp rate cut from the Federal Open Market Committee (FOMC) next week
• says October jobs report will be noisy, BoA expects nonfarm payrolls to rise by 100,000, which would be a ‘solid print’
• “Even if there is an upside surprise, we do not think the Fed will have enough conviction keep rates unchanged, especially with the policy rate still close to 5%”

Goldman Sachs quants says S&P 500 to swing +/- 2% on a wild election day

• If you think Tuesday is going to be nuts, wait until the twilight zone Asia time on Wednesday morning!

A heads up via a Goldman Sachs derivatives research note.

Citing options markets, GS says it’ll be a volatile election day (November 5):

• SPX options pricing implies a plus/minus 2.1% move on the day
• options on the top 25 macro ETFs which imply an average move of +/- 5.3% for U.S. elections when compared to the past realized moves of ~+/-2.8% during the 2016 and 2020 elections
• options market implies a move of more than 7% for ProShares Bitcoin ETF (BITO)

Two of the funds with the highest implied volatility are linked to China:

• both Dems and Reps have an aggressive posture toward China
• but Trump’s tariff proposal could pose a more sizeable threat

Canada August GDP 0.0% vs 0.0% expected

• Canada August monthly GDP data

• Prior was +0.2%
• Advance Sept GDP +0.3% m/m
• August GDP unchanged (0.0%) vs +0.1% in July
• Manufacturing sector drops 1.2%, biggest drag on growth
• Rail transportation tumbles 7.7% due to lockouts at major carriers
• Finance sector up 0.5% on market volatility and trading activity

For August, the Canadian economy stalled as manufacturing weakness and transportation disruptions offset gains in services. The flat reading followed a modest 0.1% gain in July. Manufacturing was the biggest disappointment, falling 1.2% with both durable and non-durable goods taking hits. Auto plants faced extended maintenance shutdowns while pharmaceutical manufacturing plunged 10.3%.

Rail transportation was another weak spot, diving 7.7% as work stoppages at CN and CP Rail disrupted shipments. A bridge collapse in Ontario’s Thunder Bay port added to logistics headaches.

The reversal of some of those factors is what likely boosted September with finance, construction and retail leading gains. This suggests Q3 GDP growth of around 0.2%.

Commodities

Gold Retreats as Geopolitical Factors Create Drag

Gold faced steep losses on Thursday, retreating 1.5% to trade in the $2,740s after peaking at a record high of $2,790 earlier in the session. The precious metal came under pressure as rising US Treasury yields and a strengthened US Dollar weighed on its appeal.

Key Factors Impacting Gold:

1. Rising Treasury Yields: Driven by solid US economic data, bond yields increased, diminishing gold’s attractiveness. Wednesday’s ADP employment report suggested labor market resilience, and Thursday’s jobless claims came in lower than expected at 216K, underscoring economic strength and fueling yield increases.
2. Geopolitical Influences: Hopes for a potential ceasefire in the Middle East reduced safe-haven demand. The US recently dispatched an envoy to broker a peace deal, with indications that Israel may be open to negotiations after notable strategic advancements.
3. Political Developments: Increasing odds of a Trump victory in the 2024 presidential race added further headwinds. Trump’s fiscal stance, favoring lower taxes and increased borrowing, is seen as inflationary and could keep the Fed on a tighter monetary path.

Market Sentiment:

While gold continues to attract safe-haven interest amid persistent geopolitical tensions in Ukraine, North Korea’s alleged troop deployment on Russia’s side could heighten risk sentiment. However, recent Middle Eastern developments and evolving US political dynamics have tempered immediate safe-haven demand, creating short-term hurdles for gold’s upward trajectory.

Crude oil settles at $69.26

• Up $0.65 or 0.95%

Crude oil is settling at $69.26. That is up $0.65 or 0.95%.

Looking at the daily chart, the price yesterday moved to a swing area between $66.76 and $67.69 and stalled. Soon after the settlement, there has been a report that Iran is pairing a major retaliatory strike from Iraq.

The price is now trading at $70.39 up over one dollar from the settlement amount. 

Silver Nears Key Support at $33.10 Amid Dollar Weakness

Silver extended its pullback for a second consecutive day, drifting towards a critical support zone at $33.10. With a recent reversal from the $34.50 level, silver’s lower highs and recent break below its 4-Hour 50 SMA indicate potential bearish momentum and signal a possible end to the recent bullish cycle.

Market Dynamics:

1. Support and Resistance: Key support sits at $33.10—a break below this level could amplify selling pressure, potentially driving prices toward the 38.6% Fibonacci retracement at $32.10, and further down to $31.30. Immediate resistance stands at $34.50, with the long-term high at $34.85.
2. US Dollar Influence: A softer US Dollar is helping to contain silver’s decline, with further support possible until Friday’s US NFP report and PCE Price Index provide direction. A more dovish USD may stabilize silver in the near term, although confirmation below $33.10 would likely strengthen the bearish outlook.

Sentiment and Outlook:

As silver tests support levels, market focus remains on US economic indicators, which could shift sentiment and influence silver’s next directional move. For now, a cautious outlook prevails, with traders eyeing support around $33.10 as a decisive marker for silver’s short-term trend.

EU News

European Indices close lower

• European stock mostly lower for the month. Italy’s FTSE MIB the exception

The major European stock indices are closing lower on the day. The declines outlined by the German DAX and France’s CAC with each declining by 1%.

The final numbers are showing:

• German DAX, -1.03%
• France’s CAC -1.05%
• UK’s FTSE 100 -0.61%
• Spain’s Ibex, -0.36%
• Italy’s FTSE MIB -0.64%

For the month, also the indices are closing lower with the exception of Italy’s FTSE MIB:

• German DAX -1.38%
• France’s CAC, -3.74%
• UK’s FTSE 100 -1.54%
• Spain’s Ibex -1.72%
• Italy’s FTSE MIB +0.46%

Eurozone October preliminary CPI +2.0% vs +1.9% y/y expected

• Latest data released by Eurostat – 31 October 2024

• Prior +1.7%
• Core CPI +2.7% vs +2.6% y/y expected
• Prior +2.7%

Eurozone September unemployment rate 6.3% vs 6.4% expected

• Latest data released by Eurostat – 31 October 2024
• Prior 6.4%; revised to 6.3%

Germany September retail sales +1.2% vs -0.5% m/m expected

• Latest data released by Destatis – 31 October 2024
• Prior +1.6%

A rise in non-food store retail sales (+1.7%) is helping to bolster the overall reading, offsetting the drop from food store sales (-0.8%).

Germany September import price index -0.4% vs -0.4% m/m expected

• Latest data released by Destatis – 31 October 2024
• Prior -0.4%

France October preliminary CPI +1.2% vs +1.1% y/y expected

• Latest data released by INSEE – 31 October 2024

• Prior +1.1%
• HICP +1.5% vs +1.5% y/y expected
• Prior +1.4%

Italy October preliminary CPI +0.9% vs +1.0% y/y expected

• Latest data released by Istat – 31 October 2024

• Prior +0.7%
• HICP +1.0% vs +0.8% y/y expected
• Prior +0.7%

ECB’s Panetta: Rates need to come down

• Remarks by ECB executive board member, Fabio Panetta

• Monetary conditions remain restrictive, rates need to come down
• Inflation is easing, must pay attention to weakness in the economy
• Must avoid the risk of pushing inflation well below target

ECB’s Lagarde: Inflation goal is in sight

• Remarks by ECB president, Christine Lagarde, to Le Monde newspaper

• Rate cuts will continue
• Remains prudent on inflation outlook
• Our goal is in sight but cannot say that inflation is completely under control
• Future rate cuts will be determined by underlying economic data in the coming months

Goldman Sachs forecasts Bank of England to hold rates at Dec meeting (vs. prior 25bp cut)

• Goldman Sachs changes its call on the Bank of England

Goldman Sachs now projects that the Bank of England will keep rates unchanged at the December meeting vs its previous forecast of a 25bps cut.

The BoE meet on November 7 and then again on December 19.

Asia-Pacific-World News

China official PMI data: October Manufacturing 50.1 (expected 50.0)

• China National Bureau of Statistics (NBS) data – October 2024 PMIs

China National Bureau of Statistics (NBS) data, October 2024 PMIs

Manufacturing 50.1, first time in expansion for six months

• expected 50.0, prior 49.8

Non manufacturing 50.2

• expected 50.4, prior 50.0

Composite is 50.8

• prior 50.4

PBOC sets USD/ CNY central rate at 7.1250 (vs. estimate at 7.1242)

• PBOC CNY reference rate setting for the trading session ahead

In open market operations (OMOs):

• PBOC injects 328bn yuan via 7-day RR, sets rate at 1.5%
• 799bn yuan mature today
• net drain is 471bn yuan

China’s six major national banks will start to implement a new mortgage pricing mechanism

• Begins Friday

Starting Friday, China’s six largest national banks will introduce a new pricing system for existing mortgage rates.

Previously, mortgage rate adjustments could only occur once a year, but now homebuyers have more flexibility. They can ask banks to adjust the repricing period to either three or six months whenever they choose or stick with the one-year option. At the margin this is another boost for the housing sector. At the margin.

TSMC have activated typhoon preparations at Taiwan locations

• Call them ‘routine’

Taiwan Semiconductor Manufacturing Co., the world’s largest maker of advanced chips:

• Activated routine typhoon alert preparation procedures at all our Taiwan Fabs and construction sites
• we do not expect significant impact to our operations

North Korea have fired off another ballistic missile

• South Korea media (Yonhap) with the info

North Korea have fired off another ballistic missile.

Reports via Yonhap and the Japanese Coast Guard. NK normally send these into the Sea of Japan. Yep, confirmed.

Australian September building permits +4.4% m/m (prior -6.1%)

• Australian building pipeline indicator

Australian building permits, September 2024

Building Approvals +4.4%

expected +2.1%, prior –6.1%

Australian Export price index -4.3% q/q & import -1.4% q/q

• Australian terms of trade data for Q3 2024

Australian terms of trade data for Q3 2024

Australia Import Price Index Q3 -1.4% q/q

• expected -0.3%, prior +1.0%

& Export Price Index -4.3% q/q

• expected –4.0%, prior –5.9%

Australian September 2024 Private Sector Credit +0.5% m/m (expected +0.5%)

• Data from the Reserve Bank of Australia

Credit growth in Australia, September 2024

Housing credit carrying on higher both m/m and y/y.

Australia retail sales (September) +0.1% m/m (expected +0.3%) & +0.5% q/q (prior -0.3%)

• Australia retail sales

Australia retail sales data for both September and Q3, 2024.

Weak data in September: Retail Sales +0.1% m/m, well down from the growth seen in August

• expected +0.3%, prior +0.7%
• for the y/y +2.3% (prior +3.1%)

Retail Sales excluding inflation for Q3 +0.5% q/q, a decent rise

• expected +0.5%, prior -0.3%

New Zealand data – ANZ October Business Confidence 65.7 (prior 60.9)

• ANZ New Zealand Business Survey for October 2024

New Zealand October 2024 Business Survey, showing improvement.

Business confidence 65.7%

• prior 60.9

Activity outlook 45.9%

• prior 45.3

The table below is from the ANZ report. Mixed results but not as bleak as it was just a few months ago. Retailing showing weak results.

RBNZ says home buyers remain cautious

• Reserve Bank of New Zealand “Update on the housing market”

The Reserve Bank of New Zealand have published an update on the NZ housing market.

Headlines via Reuters:

• Home buyers remain cautious in subdued housing market in NZ
• Looking ahead, govt policy changes underway to increase long-term supply responsiveness in housing market
• Uncertain when and by how much demand for new borrowing will pick up

BOJ governor Ueda: Uncertainties surrounding Japan’s economy, prices remain high

• Remarks by BOJ governor, Kazuo Ueda, in his press conference

• Will keep adjusting the degree of easing if economic, price outlook is to be realised
• Must pay due attention to financial, FX markets and their impact on economy, prices
• Need to closely watch impact of overseas economies, including US economy as well
• To publish findings of long-term policy review after the December meeting
• Won’t hold preconceptions about timing of next rate hike
• Does not want to comment on FX moves
• Inflation outlook for fiscal year 2025, 2026 is much less certain than for 2024
• New risks could emerge depending on who will be the new US president
• It is possible that unforeseen negative effects could emerge with more rate hikes
• This is because Japan has not seen rate hikes in a very long time
• Next rate hike can happen when we become more confidence of realising our outlook
• If wage hikes are similar to this year, that will be a positive development
• But that doesn’t mean we will decide a rate hike only with that

Japan September Retail Sales +0.5% y/y (expected 2.3%)

• Japan Retail Sales

• large retailer sales +2% vs. +5% prior
• m/m retail sales -2.3% vs. prior +0.8%

Japan Industrial Production (preliminary, September 2024) +1.4% m/m (expected +1.0%)

• Japan Industrial Production

Japanese manufacturers’ outlooks:

• see October output +8.3% m/m (prior forecast +6.1%)
• see November -3.7% m/m

Bank of Japan leaves rates unchanged, as widely expected

• Bank of Japan

Bank of Japan statement, October 31 2024.

• maintains short term interest rate target at 0.25%, as expected, in a unanimous decision

Forecasts for CPI and GDP:

• Board’s core CPI fiscal 2024 median forecast at +2.5% vs +2.5% in July
  Board’s core CPI fiscal 2025 median forecast at +1.9% vs +2.1% in July
  Board’s core CPI fiscal 2026 median forecast at +1.9% vs +1.9% in July
• Board’s core-core CPI fiscal 2024 median forecast at +2.0% vs +1.9% in July
  Board’s core-core CPI fiscal 2025 median forecast at +1.9% vs +1.9% in July
  Board’s core-core CPI fiscal 2026 median forecast at +2.1% vs +2.1% in July
• Board’s real GDP fiscal 2024 median forecast at +0.6% vs +0.6% in July
  Board’s real GDP fiscal 2025 median forecast at +1.1% vs +1.0% in July
  Board’s real GDP fiscal 2026 median forecast at +1.0% vs +1.0% in July

From the quarterly report:

• Given that real interest rates are at very low levels, BOJ will continue to raise policy rate if economy, prices move in line with its forecast
  
• Will conduct monetary policy from perspective of sustainably, stably achieving 2% inflation target
  
• Japan’s economy recovering moderately, although some weaknesses are seen
  
• Underlying consumer inflation likely to be at level generally consistent with 2% target in second half of projection period from fiscal 2024 through 2026
  
• Underlying consumer inflation likely to increase gradually
  
• Uncertainty surrounding Japan’s economy, prices remain high
  
• Impact of FX volatility on prices has become larger as firms have become more active in raising prices, wages
  
• Risks to prices skewed to upside for FY 2025
  
• Risks to economic outlook generally balanced
  
• Must be vigilant to financial, FX market moves and their impact on economy, prices
  
• Must scrutinise U.S., overseas economic developments and market moves
  
• Must be vigilant to impact of overseas developments, market moves on Japan’s economic and price outlook, risks and likelihood of achieving our projections
  
• Consumption rising moderately as a trend
  
• Inflation expectations rising moderately
  
• Consumption likely to continue rising moderately
  
• Financial conditions remain accommodative
  
• Service prices have continued to rise moderately reflecting wage gains
  
• But effects of pass-through to consumer prices of cost increases have waned
  
• Core core consumer inflation likely to move around 2% as services prices to rise moderately
  
• Medium- long-term inflation expectations rising moderately
  
• Nominal wages clearly rising, pass-through of rising labour costs on sales prices continue to heighten
  Cycle of rising wages, inflation likely to continue heightening
  
• Uncertainty over BOJ’s economic, price outlook remains high

South Korea Data

South Korea Industrial Production (YoY) (Sep)

• Actual: -1.3%
• Expected: 0.2%
• Previous: 3.8%

South Korea Retail Sales (MoM) (Sep)

• Actual: -0.4%
• Previous: 1.7%

South Korea Service Sector Output (MoM) (Sep)

• Actual: -0.7%
• Previous: 0.3%

South Korea Industrial Production (MoM) (Sep)

• Actual: -0.2%
• Expected: 1.2%
• Previous: 4.4%

Cryptocurrency News

Ethereum Price Outlook: Potential Bounce at Key Support

Current Price: $2,550
Key Support: $2,490
Key Resistance: $2,707

Market Overview

Ethereum (ETH) is currently experiencing a pullback, down over 5% on Tuesday. However, analysts believe that a bounce off the $2,490 support level is likely as the asset has managed to retain a significant portion of its total value locked (TVL) amidst recent outflows. With Ethereum’s Layer 2 solutions capturing a substantial share of these outflows, the outlook remains cautiously optimistic.

TVL Trends

• Outflows: Ethereum has faced approximately $6 billion in TVL outflows this year.
• Layer 2 Gains: 83% of these outflows have shifted to Layer 2 networks, indicating a healthy reallocation of funds within the Ethereum ecosystem rather than a complete exit to competitors like Solana.
• Leading L2s:
  • Arbitrum: $2.4 billion
  • Optimism: $2.2 billion
  • Base: $1.6 billion

These Layer 2 networks utilize Ethereum for their final settlement, thereby supporting the overall value of ETH and highlighting the strength of the ecosystem.

Analyst Insights

Michael Nadeau, founder of The DeFi Report, provides critical insights into the current situation. He indicates that while Solana is attracting some TVL from Ethereum, it is modest. In fact, 42% of the value that left Ethereum for Solana has returned this year, reinforcing the notion that the majority of value departing Ethereum tends to remain within its ecosystem.

Nadeau emphasizes that:

“Most of the value that leaves Ethereum makes its way back to the most secure and decentralized L1. And most of the value that has left has gone to L2s (stayed in the ecosystem).”

Current TVL and ETF Activity

• Ethereum’s TVL: Stands at $50.4 billion as of the latest data from Artemis.
• ETF Inflows: Ethereum exchange-traded funds (ETFs) recorded inflows of $4.4 million on Thursday, marking the second consecutive day of positive flows, which may signal renewed investor interest.

Conclusion

With Ethereum currently trading at $2,550, a potential bounce off the $2,490 support level could pave the way for a retest of the $2,707 resistance. The resilience of Ethereum’s Layer 2 solutions and the recent positive ETF inflows suggest that while the market may be experiencing short-term volatility, the long-term outlook for ETH remains robust. As the crypto landscape evolves, Ethereum’s ability to adapt and capture value within its ecosystem will be critical in maintaining its market position.

Crypto Market Update: Bitcoin, Ethereum, and XRP Experience Minor Dips Amidst Correction Fears

Current Prices:

• Bitcoin: $72,000
• Ethereum: $2,638
• XRP: $0.5184

Market Overview

On Thursday, the cryptocurrency market saw slight declines as major assets like Bitcoin, Ethereum, and XRP pulled back, fueled by concerns of a potential market-wide correction. The Crypto Fear & Greed Index continues to reflect “extreme greed,” which often precedes market corrections, suggesting caution among traders.

Key Updates on Major Cryptocurrencies

• Bitcoin (BTC): Trading above $72,000, Bitcoin remains a focal point for traders seeking signs of a return to its previous all-time high. However, it noted a slight decline on the day as traders reassess market conditions.
• Ethereum (ETH): Down nearly 1%, Ethereum is currently priced at $2,638. Despite the dip, it remains a critical asset as the second-largest cryptocurrency by market cap.
• XRP: Trading at $0.5184, XRP has also experienced a minor decline of less than 1%. The native token of the XRP Ledger may be bracing for further downward movement amid the market’s uncertainty.

Market Sentiment and Events

The sustained reading of “extreme greed” on the Crypto Fear & Greed Index indicates heightened investor enthusiasm, which historically correlates with a potential downturn in market prices. This sentiment, combined with the observed dips, has prompted traders to exercise caution.

Notable Industry Events:

• Changpeng Zhao (CZ), former CEO of Binance, recently spoke at the Binance Blockchain Week, drawing attention to his views on the current state of the cryptocurrency market.
• MicroStrategy (MSTR) announced an ambitious plan to raise $42 billion over the next three years to fund Bitcoin purchases. This includes a $21 billion equity offering alongside another $21 billion in fixed-income securities, as shared by founder Michael Saylor on X.
• MrBeast Controversy: Crypto intelligence platform Lookonchain has accused popular YouTuber MrBeast of insider trading, alleging that he misled investors by promoting certain tokens before dumping them for profit.

Additional Market Insights

Despite Bitcoin approaching its previous all-time high, data from Bitwise indicates that Google searches for the cryptocurrency are surprisingly low, suggesting a disconnect between price action and public interest.

In regulatory news, Archax, the UK’s first regulated Real World Asset (RWA) exchange, has agreed to acquire Spanish broker King and Shaxson Capital Markets, signaling a move to expand its European operations.

Lastly, Reddit has reportedly liquidated a significant portion of its cryptocurrency portfolio in Q3, which included offloading Bitcoin and Ethereum that were previously held for treasury purposes, as detailed in a recent SEC filing.

As the crypto market navigates these fluctuations, traders and investors will be closely monitoring price movements and sentiment indicators to anticipate the next potential shift in market dynamics.

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