Crypto market capitalization edged down early on Friday amidst caution ahead of the non-farm payrolls data due later in the day. Industry level developments including the exploit on the Ankr platform and recent public revelations and admissions by Sam Bankman-Fried, the former CEO of the FTX Group also dampened crypto market sentiment.
Despite the respite provided in the recent speech by the Fed Chair, world markets remained in a cautious mode in anticipation of the crucial payrolls data from the U.S., that could make or mar the Fed's stated commitment to soften the fight against inflation.
The prospect of a respite from the Fed as early as December helped cryptos usher in the new month on a positive note.
Relief at the Fed Chair's comments that the central bank could slow down the pace of rate increases as soon as December, dominated world market sentiment across markets and regions.
Cryptocurrencies extended gains early on Wednesday ahead of a keenly watched speech by Fed Chair Jerome Powell, that is expected to throw hints on the Fed's monetary policy path.
Relief at the more-than-expected drop in inflation in the Euro Area that triggered hopes of softening in stance by the ECB helped boost sentiment across markets.
Cryptocurrencies rallied more than 2 percent overnight even as the FTX contagion claimed fresh victims in the crypto space. BlockFi, which had halted withdrawals soon after the FTX implosion filed for bankruptcy protection. China's Covid related unrest too had little impact as market cap increased to $837 billion, from $819xx billion a day earlier.
Relief at the abatement in Covid protests in China as well as comments from key central bank officials dominated investor sentiment across markets. ECB top official's comments that inflation had not likely peaked unnerved sentiment ahead of the release of the inflation numbers from Germany on Tuesday and from France on Wednesday.
Cryptocurrencies edged down on Black Friday, amidst easing Fed fears that lifted risky assets including stocks. Cryptocurrencies remain muted whilst the anxiety over potential contagion from the FTX collapse lingers.
Here is a snapshot of the world markets at this hour across stocks, currencies, bonds, commodities and cryptocurrencies.