Cryptocurrency Market Remains Subdued as Investors Await US Jobs Report

Francisco Rodrigues (All times ET unless otherwise specified) reports that Bitcoin has risen by 0.6% over the past 24 hours to $85,667.37, while the broader market, as measured by the CoinDesk 20 Index, has increased by 0.4%. However, this gain is overshadowed by the significant rise in gold prices, which have broken through the $3,500 per ounce barrier for the first time, resulting in the tokenized gold market reaching a value of over $2.5 billion. The surge in gold prices is attributed to growing expectations of a rate cut by the Federal Reserve this month, amidst concerns over increasing government debt, which has led to a sell-off in long-dated government bonds. The yield on Japan's 30-year government bond has reached a record high of 3.28%, while the US 30-year Treasury yield is approaching 5%, and British gilts have reached levels not seen since 1998, at 5.7%. Despite this turmoil, the cryptocurrency market remains subdued, with Deribit's bitcoin volatility index at its lowest level since late 2023, at 38.1, and capital seemingly rotating into ether, with spot ether ETFs attracting a net $3.87 billion in August, compared to net outflows of $751 million for spot bitcoin ETFs. A joint statement from the SEC and CFTC has provided clarification on compliant spot crypto trading, but has failed to significantly impact the market, as investors await the US jobs report on Friday, which could influence the Federal Reserve's decision on interest rates and subsequently affect the market and other risk assets.