Investors looking ahead to Wednesday’s Fed interest rate decision.
Crypto markets have edged higher over the weekend following comments from US Treasury Secretary Scott Bessent that the US and China have agreed on a positive framework over Chinese export controls on rare earth minerals and averting the threatened 100% tariffs from the US on Chinese imports,
Bitcoin is up over 3% in the last 24 hours, currently trading at $115,300. Ethereum 5% and solana 3%.
President Trump and Chinese President Xi Jinping are scheduled to meet at the Asia-Pacific Economic Cooperation Summit in South Korea on Thursday, writes Simon Peters, cryptoasset market analyst at multi-asset investment platform eToro. .
Outside of geopolitics, investors will be looking ahead to Wednesday’s interest rate decision from the Fed and Chairman Powell’s press conference shortly after.
Cooler-than-expected inflation data from the US last week has raised investors’ optimism for the Fed to make further cuts to interest rates at Wednesday’s meeting as well as on 10th December.
According to CME’s FedWatch market odds are now 97% and 96% for 25 basis point cuts at the respective meetings. Cuts happening and dovish tones from Chairman Powell could spur the market higher.
BIGGEST MOVERS
ZCash $ZEC continues to climb, up 48% in the last 7 days, and is trading at the highest price since May 2021, as investors bet on reduced sell-pressure from miners due to its upcoming November halving event, as well as due to a continued demand for privacy coins.
In little over a month the price has seen a near 1000% increase, going from $33 to just over $350 today.
With institutional investors also able to get exposure to the cryptoasset, through vehicles such as Grayscale’s ZEC Trust, these extraordinary price moves could continue, particularly if geopolitical tensions ease and financial conditions globally continue to loosen.
Discover more here: https://www.etoro.com/discover/markets/cryptocurrencies/market-movers
EYE-CATCHING STORIES
Hong Kong regulator approves first solana spot ETF
Hong Kong’s Securities and Futures Commission last week approved the region’s first spot solana exchange traded fund, expanding beyond just bitcoin and ethereum, and adding further weight to its goal of being Asia’s leading jurisdiction for regulated crypto investment products.
Issued by China Asset Management (ChinaAMC) the spot solana ETF is expected to launch on the Hong Kong Stock Exchange today under three currency counters – Hong Kong dollar (3460), renminbi (83460), and US dollar (9460). Each unit of the ETF represents 100 SOL.
Whilst still a milestone for the crypto sector, crypto investors are more so awaiting the approval of a US-listed solana spot ETF, as this would arguably see more inflows given the US market’s size and the dollar’s global dominance, and thus potentially have a greater positive impact on the solana underlying cryptoasset price.
One specific development regarding the US solana spot ETF applications is that the SEC recently approved the 8-A form, one of the primary forms companies use to register securities for listing or quoting on an exchange, for 21Shares’ solana ETF, however the ongoing government shutdown could delay the approval of other forms necessary for launch such as the S-1 registration statement.
