Market overview

The crypto market capitalisation has fallen by more than 1.5% over the past 24 hours to $2.45T, hitting its lowest level since August. Cryptocurrencies, which had lagged significantly behind equities on Monday, failed to catch up on Tuesday and came under pressure. There are several reasons behind this divergence. We believe that interest in AI in the run-up to Anthropic’s IPO is once again drawing risk capital away from cryptocurrencies, as it did from May to June. Higher-than-expected CPI data showing accelerating inflation, strong US jobs figures, and Waller’s subsequent comments triggered a rally in the dollar, as they opened the door to a 50-basis-point rate hike by the Fed in December. As all this is underpinned…