Crypto Market Loses Ground as JPMorgan CEO Warns of Potential Stock Crash

Following a brief resurgence on Wednesday, the crypto market, including BTC, experienced a decline on Thursday. This downturn occurred despite the Federal Reserve minutes indicating a bias towards further rate cuts. The CoinDesk 20 Index (CD20) decreased by over 1% to 4,163 points. The primary reason for this decline appears to be the sustained strength of the US dollar index (DXY), which diminishes the appeal of assets denominated in USD, such as cryptocurrencies. The ongoing US government shutdown has left traders in a state of uncertainty as they await Federal Reserve Chairman Jerome Powell's speech for hints on policy direction, particularly in light of the temporary pause in jobs and inflation data. In other news, President Trump announced a potential peace agreement between Israel and Hamas, which could lead to hostage releases by Monday, as reported by Qatari media. However, oil prices increased slightly above $62, indicating that traders remain cautious about the agreement's durability. In the crypto sector, Helius, a digital asset treasury company, announced plans to acquire at least 5% of Solana's supply. Additionally, Coinbase launched decentralized exchange (DEX) trading within its app for US users, excluding those in New York. The founder of Polymarket also hinted at a possible launch of their native token, POLY. In traditional markets, gold maintained its value above $4,000, despite the dollar's rally, while S&P 500 futures remained steady near record highs. Jamie Dimon, CEO of JP Morgan, expressed concerns about a potential major stock market drop in the coming months. Key events to watch include the release of fresh jobs and inflation data, as well as Fed Chair Jerome Powell's speech. For a comprehensive list of events, refer to CoinDesk's 'Crypto Week Ahead'.