Bitcoin and Ether fell in early Wednesday morning Asian trading, along with the other top ten non-stablecoin cryptocurrencies, as investors appeared to be taking profits after the year’s strong gains. Polkadot suffered the greatest loss. US equities were mixed on Tuesday as a result of Microsoft’s lower earnings guidance and the release of the US purchasing managers index, or PMI. The index, which measures business trends, was 46.6. While this exceeded expectations, a number less than 50 indicates that the economy is contracting.

Important Facts

Bitcoin traded 1.3% lower in the 24 hours to 8:45 a.m. in Hong Kong, at US$22,688, but was still up 6.8% in the previous calendar week. According to CoinMarketCap data, ether fell 4.6% to $1,555, losing 1.2% for the week.

Polkadot dropped 6.7% to US$6.15, the biggest drop on the top ten list. The token is still up 2.8% year to date.

Solana fell 5.7% to US$22.92, bringing the weekly loss to 0.2%. Cardano fell 5.7% to US$0.35, but was still up 2.1% for the week.

Over the last 24 hours, total crypto market capitalization fell 2.2% to US$1.03 trillion, while trading volume fell 6.4% to US$52.7 billion.

The Dow Jones Industrial Average rose 0.3% in the United States, while the S&P 500 Index fell 0.1%. The tech-heavy Nasdaq Composite Index fell 0.3% on the day.

Microsoft Corp reported better-than-expected earnings for the December quarter, but the stock fell 1.4% to $238.75 after the company’s earnings guidance for the next quarter disappointed investors.

The composite Purchasing Manager’s Index (PMI) for January, released on Tuesday, showed a contraction in private sector demand, with firms citing subdued customer demand and inflation denting client spending.

To try to slow inflation, the Federal Reserve of the United States raised interest rates by 50 basis points last month, to between 4.25% and 4.5%, the highest level in 15 years. Fed members will be in a “blackout period” before meeting to decide on the next interest rate move on January 31-February 1. CME Group analysts predict a 99.8% chance of a 25 basis point increase.

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