WASHINGTON (dpa-AFX) - A massive selloff attributed to the global trade war forcefully spilled over from the traditional financial markets to the digital currency markets ahead of the August 2 trade tariff deadline. President Trump's announcement of steep tariffs on several trading partners that rattled equity, commodity and currency markets created turmoil in the cryptocurrency market as well. Outflows from Bitcoin Spot ETF products in the U.S. also weighed on sentiment. Overall crypto market capitalization has declined close to 4 percent in the past 24 hours.
The broad-based erosion in crypto prices came in the backdrop of liquidation of long positions in the crypto market, shifting of investments from altcoins, dollar strength, hardening of bond yields as well as crypto profit booking. Anxiety ahead of the release of the monthly payrolls data also weighed on sentiment amidst a hawkish monetary policy positioning by the Federal Reserve.
In data to be released on Friday morning, the U.S. Bureau of Labor Statistics is expected to reveal a lower addition of 110 thousand to non-farm payrolls in the month of July versus 147 thousand recorded in the previous month. The unemployment rate is also expected to increase to 4.2 percent from 4.1 percent in June.
The recent massive flows to digital asset investment products have increased the overlap of the traditional financial markets on the digital asset markets as well as the extent of correlation in market shocks. Amidst the selloff in equity markets, crypto markets too have witnessed market cap erosion.
Overall crypto market capitalization has decreased close to 4 percent. It is currently at $3.73 trillion. None of the top 100 cryptocurrencies have recorded overnight gains of more than a percent. On the contrary, close to 30 percent of the top 100 cryptocurrencies are trading with overnight losses of more than 10 percent. The 24-hour trading volume has increased 15 percent overnight to $196 billion.
The CMC Crypto Fear and Greed Index, a proprietary tool developed by CoinMarketCap to measure the emotional state of the market slipped to 57 that portends a 'neutral' market state. The reading was at 62 a day earlier that implied 'Greed'.
Amidst the volatility, Bitcoin's crypto market dominance has increased to 61.2 percent from 60.8 percent a day earlier. Ethereum now commands 11.7 percent of the overall crypto market versus 11.9 percent a day earlier. The market share of the residual altcoins is currently at 27.1 percent. It was 27.3 percent a day earlier.
Bitcoin dropped 2.9 percent overnight to trade at $115,053.10. It is currently trading 7 percent below the all-time-high of $123,091.61 recorded on July 14. The original cryptocurrency traded between $118,868.42 and $114,142.49 during the past 24 hours. The leading cryptocurrency is trading with losses of 1.5 percent over the 7-day horizon and gains of 6.8 percent over the 30-day horizon. Year-to-date gains have fallen to a little more than 23 percent.
With the decline in market capitalization, Bitcoin has slipped back to the 7th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
Bitcoin-based Spot ETF products in the U.S. recorded outflows of $115 million on Thursday as compared with inflows of $47 million on Wednesday. iShares Bitcoin Trust (IBIT) topped inflows with $19 million whereas Ark 21Shares Bitcoin ETF (ARKB) topped outflows with $90 million.
Ethereum shed 5.6 percent overnight to trade at $3,622.70. Ether has lost 3.1 percent in the past week. Gains in 2025 have also reduced to 8.75 percent. Ether's current trading price is 26 percent below its all-time-high. The 24-hour trading range was between $3,843.69 and $3,590.02.
Ethereum-based Spot ETF products witnessed inflows of $17 million on Thursday versus inflows of $6 million on Wednesday and $219 million on Tuesday.
Ethereum has however been able to maintain the 25th position in the ranking of all assets as per market capitalization published by companiesmarketcap.com.
3rd ranked XRP dropped 6.6 percent overnight to trade at $2.94, around 23 percent below the all-time high. 5th ranked BNB declined 4.3 percent overnight at its current trading price of $767.02. The price of 6th ranked Solana decreased 7.1 percent overnight to $167.94. 8th ranked TRON lost 0.54 percent overnight and is currently changing hands at $0.3265. With gains of 4.3 percent, TRON is the highest-ranking crypto to trade with weekly gains. 9th ranked Dogecoin plunged 7.7 percent overnight to trade at $0.2053. DOGE is currently trading 72 percent below the record high. 10th ranked Cardano also erased 7.5 percent overnight to trade at $0.7206. The trading price is 77 percent below the cryptocurrency's all-time high.
20th ranked UNUS SED LEO (LEO) topped overnight gains among the top 100 cryptocurrencies with a gain of 0.20 percent.
61st ranked SPX6900(SPX) topped overnight losses among the top 100 cryptocurrencies with a decline of 16.6 percent. 76th ranked Pump.fun (PUMP) and 84th ranked Sonic (S) followed with overnight losses of more than 14 percent.
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