The crypto market showed mixed sentiments today as major coins experienced price fluctuations. The Crypto Fear & Greed Index rose from 37 to 41, signaling a slight improvement but still lingering in the 'Fear' zone. Bitcoin (BTC) remained volatile this week, influenced by increasing tensions in the Middle East and investors' growing focus on traditional safe-haven assets like gold.

Crypto heat map, October 4 | Source: Coin360

Additionally, market participants are closely watching the upcoming US Non-Farm Payroll (NFP) data due on Friday. Recent US economic indicators, such as the ISM Services Index reaching an 18-month high, caused a brief rebound in the S&P and Nasdaq before closing lower due to concerns over potential Israeli attacks on Iran's oil industry. Amidst this uncertainty, BTC has managed a slight uptick, while the ETH/BTC ratio continues to decline.

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Quick Market Updates

• Prices (UTC+8 8:00): BTC: $61,292 (+0.96%); ETH: $2,375 (+0.95%)

• 24-Hour Long/Short Ratio: 49.5%/50.5%

• Fear and Greed Index: 41 (Up from 37, still in 'Fear' territory)

1. Fed’s Rate Cut Expectations: Federal Reserve official Austan Goolsbee suggested that cutting rates by 25 or 50 basis points is less urgent than a more substantial reduction to neutral levels over the next year. Current market sentiment indicates a 62.5% probability of a 25-basis-point rate cut in November.

2. Ethereum Developments: Co-founder Vitalik Buterin proposed increasing bandwidth requirements and lowering the minimum staking threshold to 16 or 24 ETH, reflecting the ongoing evolution of the Ethereum ecosystem.

3. Ripple Expansion: Ripple launched its high-speed payment solution, Ripple Payments, in Brazil, extending its international reach and reinforcing its role in cross-border payments.

Crypto Inflows Surge: $1.2 Billion Amid Rate Cut Hopes

Last week saw significant inflows into crypto investment products, totaling $1.2 billion – the highest in 10 weeks. Bitcoin led with over $1 billion in inflows, while Ethereum broke its five-week losing streak, gaining $87 million. This surge in inflows is driven by hopes of interest rate cuts in the U.S., enhancing the market's outlook.

Read More: Crypto Inflows Surge: $1.2 Billion in a Week Amid Rate Cut Hopes

XRP Dips 9% as SEC Reignites Legal Battle

XRP dropped by 9% after the SEC filed an appeal against a previous court ruling that had determined XRP was not a security when sold to retail investors. Ripple's CEO Brad Garlinghouse and CLO Stuart Alderoty expressed disappointment but hinted at a possible cross-appeal. Despite this setback, Ripple’s XRP Ledger continues to play a vital role in cross-border payments.

Bitcoin's Dominance Climbed Near a Three-Year High

Bitcoin dominance spikes to 58% | Source: TradingView 

While XRP faced challenges, Bitcoin saw a modest 1% increase, pushing its price close to $61,000. Meanwhile, Ethereum slipped by over 1% to around $2,350, reflecting the broader market's volatility. Bitcoin's dominance climbed near a three-year high, standing at 58%.

Read more: Bitcoin Market Holds Strong Amid $60K Threat: Traders Remain Optimistic

Notable Movers: Aptos Surges, SUI Declines

APT/USDT price chart | Source: KuCoin 

Aptos (APT) outperformed the market with a 7% gain following the news of Franklin Templeton expanding its tokenized money market fund to the Aptos blockchain. Conversely, SUI dropped after a month-long rally, as some traders rotated profits into Aptos.

U.S. Dollar Strengthening

DXY rises above 101 | Source: TradingView

The crypto market's mixed performance coincided with the U.S. dollar surging to its highest level since mid-August due to strong economic data and ongoing geopolitical concerns in the Middle East. A spike in the Secured Overnight Financing Rate (SOFR) has also raised concerns over potential liquidity stress, drawing parallels to the repo crisis of 2019.

Markets now await Friday's U.S. jobs report, which could serve as a catalyst. A mix of expected rate cuts and strong labor data may drive renewed optimism in risk assets, including cryptocurrencies.

Solana Could Challenge Ethereum’s Dominance

Solana vs. Ethereum price performance | Source: TradingView 

Recent trends show financial institutions considering Solana for real-world asset tokenization and stablecoins. This shift could position Solana as a serious competitor to Ethereum over the long term, especially with Visa's recent integration of USDC on the Solana network.

Read more: Solana vs. Ethereum: Which Is Better in 2024?

PayPal's First Corporate Payment via PYUSD Stablecoin

PayPal completed its first business transaction using its USD-pegged stablecoin, PYUSD, with Ernst & Young through SAP’s digital currency hub. This marks a significant milestone in using stablecoins for instant corporate payments.

Read more: All You Need to Know About PayPal USD (PYUSD) - PayPal’s Stablecoin

The crypto market continues to showcase a mix of optimism and caution, driven by global economic developments, regulatory changes, and technological advancements. Bitcoin's resilience above the $60,000 mark, Ethereum's proposed updates, and Solana's potential challenge to Ethereum highlight the dynamic nature of the market. However, factors such as geopolitical tensions, U.S. economic data, and regulatory scrutiny, particularly the ongoing legal battles like the XRP case, add layers of uncertainty.

As always, investors should stay informed and be mindful of the market's inherent risks, understanding that volatility is a constant companion in the crypto space. It's crucial to conduct thorough research and consider risk tolerance before making any investment decisions.

Stay tuned to KuCoin News for more crypto market updates and insights.