WASHINGTON (dpa-AFX) - Sentiment in crypto markets weakened ahead of the release of the consumer price inflation data for July from the U.S. on Tuesday morning. A hotter-than-anticipated level of consumer price inflation is seen weakening the case for a Fed rate cut in September, potentially triggering profit booking across risk assets including cryptocurrencies.
In data to be released by the U.S. Bureau of Labor Statistics, headline consumer price inflation in July is seen edging up to 2.8 percent from 2.7 percent in June and 2.4 percent in May. The core component thereof is seen rising to 3 percent from 2.9 percent in June and 2.8 percent in May. While month-on month inflation is seen at 0.2 percent in July versus 0.3 percent in June and 0.1 percent in May, the core component thereof is seen at 0.3 percent, steadily rising from 0.2 percent in June and 0.1 percent in May.
The Federal Open Markets Committee which seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run, had in the previous FOMC statement in July acknowledged that inflation remains somewhat elevated. However, the sharply lower-than-expected additions to payrolls revealed in data released on August 1 had triggered doubts about whether the Fed would be able to hold on to its view that labor market conditions remain solid.
Expectations of a Fed rate cut in September have sharply increased since then. Markets now assign an 84-percent likelihood for a Fed rate cut In September and a 94-percent probability for a rate cut in October.
Amidst a strong dollar and the risk-off sentiment, overall crypto market capitalization has decreased close to 2 percent overnight. It is currently at $3.94 trillion. Only 3 of the top 100 cryptocurrencies are trading with overnight gains of more than a percent while close to 80 are trading with overnight losses of more than a percent. The 24-hour trading volume has increased 5 percent overnight to $187 billion.
The CMC Crypto Fear and Greed Index, a proprietary tool developed by CoinMarketCap to measure the emotional state of the market slipped to 60 that portends a state of 'greed' in the market. The reading was at 62 a day earlier that also implied a state of 'greed'.
Amidst the volatility, Bitcoin's crypto market dominance stands at 59.85 percent while Ethereum accounts for 13.11 percent of the overall crypto market. The residual altcoins account for a share of 27.04 percent of the overall crypto market.
Bitcoin has slipped 2.2 percent overnight to trade at $118,491.83. It is currently trading 4 percent below the all-time-high of $123,091.61 recorded on July 14. The original cryptocurrency traded between $120,781.31 and $118,159.03 during the past 24 hours.
The leading cryptocurrency is trading with gains of 3.2 percent over the 7-day horizon and 0.6 percent over the 30-day horizon. Year-to-date gains are a little more than 26.8 percent.
Bitcoin-based Spot ETF products in the U.S. had recorded inflows of $178 million on Monday versus $404 million on Friday. iShares Bitcoin Trust ETF (IBIT) topped with inflows of $138 million.
Ethereum rallied 1.2 percent overnight to trade at $4,279.85. Ether has surged 16.5 percent in the past week and 44.8 percent over the past 30 days. Gains in 2025 now stand at 28.5 percent. Ether's current trading price is 13 percent below its all-time-high. The 24-hour trading range was between $4,362.09 and $4,168.87.
Ether's year-to-date gains of 28.5 percent exceed Bitcoin's 26.9-percent gain in 2025. Ether's strong performance came in the backdrop of strong inflows to ETF products.
Ethereum-based Spot ETF products witnessed record inflows of $1.02 billion on Monday versus inflows of $461 million on Friday. iShares Ethereum Trust (ETHA) topped with record inflows of $640 million followed by Fidelity Ethereum Fund (FETH) that also registered record inflows of $277 million.
3rd ranked XRP slipped 3.7 percent overnight to trade at $3.13, around 18 percent below the all-time high.
5th ranked BNB lost 0.57 percent overnight at its current trading price of $800.53. The price of 6th ranked Solana dropped 3.4 percent overnight to $174.81. SOL is still saddled with year-to-date losses of 7.6 percent.
8th ranked Dogecoin slipped 4.8 percent overnight to trade at $0.2207. DOGE is currently trading 70 percent below the record high.
9th ranked TRON rallied 1.1 percent overnight and is currently changing hands at $0.3454.
10th ranked Cardano declined 4.3 percent overnight to trade at $0.7702. The trading price is 75 percent below the cryptocurrency's all-time high.
68th ranked Lido DAO (LDO) topped overnight gains among the top 100 cryptocurrencies with a gain of 1.3 percent.
57th ranked Story (IP) and 88th ranked Fartcoin (FARTCOIN) topped overnight losses among the top 100 cryptocurrencies with a decline of more than 16 percent. 50th ranked Bonk (BONK) and 44th ranked Pudgy Penguins (PENGU) followed with overnight losses of more than 11 percent.
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