Crypto Market Daily Highlights – SOL and XRP Lead the Top Ten Reversal

The top ten cryptocurrency index had a gloomy start to the week. The road down was headed by ripple (XRP) and solana (SOL). BTC avoided sub-$19,000 for a third session despite the negative session, but it fell short of $20,000 for the seventeenth day in a row.

Riskier assets were under pressure this morning as a result of market response to Xi Jinping being elected to a third term as president and having a cabinet full of supporters. The immediate worries continue to include Xi's backing of Vladimir Putin, China's stance on Taiwan, and its zero-tolerance approach to COVID-19.

The US and EU private sector PMIs contributed to the pessimistic mood. The Eurozone Composite PMI decreased to 47.1, a 23-month low. The US services PMI dropped significantly from 49.3 to a two-month low of 46.6, increasing the risk of a US recession.

However, the lower PMI figures for the private sector had little effect on public opinion of Fed monetary policy. The FedWatch Tool estimated the likelihood of rate increases in November and December to be 95.5% and 54.9%, respectively, as of this morning. The probability of a December 75-basis point increase was 45.6% a day ago.

The next day's events will be influenced by US consumer confidence data. Despite the NASDAQ 100 gaining by 0.80% on signs that the Fed is slowing the economy, the crypto market declined on Monday. The Fed may be able to let off the throttle if the economy weakens.