WASHINGTON (dpa-AFX) - A surge in Fed rate cut expectations in the aftermath of the U.S. CPI data release on Tuesday bolstered sentiment for cryptocurrencies. The gains coincided with a decline in the Dollar Index, an easing in sovereign bond yields, a record high level of public debt in the U.S. as well as a rally in Wall Street. Ethereum dazzled with a surge to $4,734.45, not far from the all-time high of $4,891.70 recorded on Nov 16, 2021.
The CME FedWatch tool that tracks the expectations of interest rate traders shows rate cut expectations for the September FOMC rising to an overwhelming 99.9 percent from 93.9 percent a day earlier. Expectations of a rate cut in October has increased to 100 percent from 97.8 percent a day earlier.
In data released on Tuesday morning by the U.S. Bureau of Labor Statistics, headline annual consumer price inflation unexpectedly remained steady at 2.7 percent in July, pleasantly surprising markets that had anticipated an uptick to 2.8 percent. The core component thereof which was seen rising to 3 percent from 2.9 percent in June however disappointed with a rise to 3.1 percent.
While month-on month inflation edged down as expected to 0.2 percent from 0.3 percent in June, the core component thereof edged up as expected to 0.3 percent, from 0.2 percent in June.
Amidst strong rate cut expectations and the dollar's retreat, overall crypto market capitalization has increased close to 4 percent overnight. It is currently at $4.13 trillion. Only 4 of the top 100 cryptocurrencies are trading with overnight losses of more than a percent, while more than 80 are trading with overnight gains of more than a percent. The 24-hour trading volume has increased 22 percent overnight to $232 billion.
The CMC Crypto Fear and Greed Index, a proprietary tool developed by CoinMarketCap to measure the emotional state of the market became further entrenched in the greed territory with a jump to 63. The reading was at 60 a day earlier.
Amidst the volatility, Bitcoin's crypto market dominance has slipped to 58.8 percent while Ethereum's market share has increased to 13.7 percent of the overall crypto market. The residual altcoins now account for a share of 27.6 percent of the overall crypto market.
Bitcoin has rallied 2.2 percent overnight to trade at $121,725.60. It is currently trading 1 percent below the all-time-high of $123,091.61 recorded on July 14. The original cryptocurrency traded between $122,194.57 and $118,939.63 during the past 24 hours.
The leading cryptocurrency is trading with gains of 6.6 percent over the 7-day horizon and mild loss of 0.14 percent over the 30-day horizon. Year-to-date gains are a little more than 30 percent.
Bitcoin-based Spot ETF products in the U.S. recorded inflows of $66 million on Tuesday versus $178 million on Monday. iShares Bitcoin Trust ETF (IBIT) topped with inflows of $111 million.
Amidst growing institutional adoption, Ethereum surged more than 6 percent overnight to trade at $4,653.93, lifting market capitalization to $562 billion. Ether has surged 29 percent in the past week and 52 percent over the past 30 days. Gains in 2025 now stand at 39.7 percent. Ether's current trading price is 5 percent below its all-time-high. The 24-hour trading range was between $4,734.45 and $4,414.20.
Ethereum-based Spot ETF products witnessed inflows of $524 million on Tuesday versus inflows of $1.02 billion on Monday and $461 million on Friday. iShares Ethereum Trust (ETHA) topped with inflows of $319 million followed by Fidelity Ethereum Fund (FETH) that registered inflows of $145 million.
While Bitcoin maintained rank 6 in the global ranking of all assets as per companiesmarketcap.com, Ethereum jumped to the 22nd rank. Ethereum now commands a market capitalization higher than Mastercard ($523 billion) and Netflix ($518 billion).
3rd ranked XRP rallied 2.2 percent overnight to trade at $3.25, around 15 percent below the all-time high. 5th ranked BNB surged 4.4 percent overnight at its current trading price of $848.63.
The price of 6th ranked Solana jumped 11.6 percent overnight to $198.01. With the brilliant overnight rally, SOL has swung to profit on a year-to-date basis. The cryptocurrency is now trading with gains of 4.6 percent in 2025.
8th ranked Dogecoin surged 7.5 percent overnight to trade at $0.2415. DOGE is currently trading 67 percent below the record high.
With year-to-date losses of 23.5 percent, DOGE is the highest ranking cryptocurrency to trade with year-to-date losses. Despite the bullish momentum in crypto world, more than 50 percent of the top 100 cryptocurrencies are still trading with losses on a year-to-date basis. 93rd ranked Virtuals Protocol (VIRTUAL) tops with losses of more than 65 percent in 2025.
9th ranked TRON rallied 2.7 percent overnight and is currently changing hands at $0.3576.
10th ranked Cardano added 9.6 percent overnight to trade at $0.8710. The trading price is 72 percent below the cryptocurrency's all-time high.
It has been a spectacular week for most cryptocurrencies with only three of the top 100 cryptocurrencies trading with losses on a weekly basis. With weekly losses of more than 10 percent, 32nd ranked Monero (XMR) is the highest-ranking cryptocurrency to trade with losses over the 7-day horizon.
25th ranked OKB (OKB) topped overnight gains among the top 100 cryptocurrencies with a gain of 128 percent. OKB rallied following the announcement of a one-time burn transaction of 65.3 million OKB.
77th ranked Fartcoin (FARTCOIN) followed with overnight gains of 25.5 percent. 84th ranked Raydium (Ray) also added 15.6 percent.
29th ranked Ethena (ENA) topped overnight losses among the top 100 cryptocurrencies with a decline of 3.4 percent. 89th ranked Tezos (XTZ) followed with overnight losses of 2.8 percent.
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