WASHINGTON (dpa-AFX) - A moderation in rate cut hopes following the higher-than-expected producer price inflation readings from the U.S. dragged down cryptocurrency prices. While markets continue to factor in a quarter percentage rate cut in September exuberant expectations of a higher level of easing by the Fed have somewhat sobered. Both Bitcoin and Ethereum are trading 4 to 5 percent below the all-time-highs.
Data released by the U.S. Bureau of Labor Statistics on Thursday morning showed headline producer prices as well as its core component rising 0.9 percent month-on-month in July versus the flat reading in June. The biggest increase in producer prices since June 2022 came in much higher than expectations of 0.2 percent.
The CME FedWatch tool that tracks the expectations of interest rate traders shows expectations for a quarter-percentage rate cut in September at 92.6 percent. For the FOMC in October, 41.6 percent expect a rate cut of 25 basis points and 55.5 percent anticipate a rate cut of 50 basis points. For the FOMC in December, 11.6 percent expect a rate cut of 25 basis points and 44.7 percent anticipate a rate cut of 50 basis points. Also, 43.1 percent expect the target rate to ease by 75 basis points from the current level of 4.25-4.5 percent level to the 3.50-3.75 percent level.
All eyes are now on the Retail sales update for July to be published by the U.S. Census Bureau on Friday morning. Retail sales which had recorded 0.6 percent in June is expected to record 0.5 percent in July amidst lingering fears that Americans are holding back on purchases.
Amidst the dollar's rebound and a softening in rate cut expectations, overall crypto market capitalization has declined 2.21 percent to $4.04 trillion. Market capitalization of meme category has declined 3.9 percent whereas the AI & Big data market capitalization has fallen by 3.5 percent. The Made in America cryptocurrencies have witnessed a dip of 2.8 percent in market capitalization.
Despite contradictory comments by U.S. officials on acquiring Bitcoin for the Strategic Bitcoin Reserve, market capitalization of the category has declined 1.8 percent, not more than the broader market decline.
Close to 80 of the top 100 cryptocurrencies are trading with overnight losses of more than a percent, while only 6 are trading with overnight gains of more than a percent. The 24-hour trading volume has increased 3 percent overnight to $259 billion.
The CMC Crypto Fear and Greed Index, a proprietary tool developed by CoinMarketCap to measure the emotional state of the market slipped to the neutral territory with a plunge to 59. The reading was at 68 a day earlier denoting 'greed'.
Amidst the volatility, Bitcoin's crypto market dominance has edged down to 58.7 percent while Ethereum's market share has increased to 13.9 percent of the overall crypto market. The residual altcoins now account for a share of 27.4 percent of the overall crypto market of which stablecoins constitute 7.1 percent of the overall market.
Bitcoin, which touched an all-time high of $124,457.12 a day ago has retreated to $119,0.29.86 implying overnight losses of 1.8 percent and a weekly addition of 2.2 percent. It is currently trading 4 percent below the all-time-high. The original cryptocurrency traded firmly above $117k during the past 24 hours.
Though Bitcoin-based Spot ETF products in the U.S. recorded net inflows of $231 million on Thursday as compared with $87 million on Wednesday, it was a rather mixed picture. While iShares Bitcoin Trust ETF (IBIT) recorded inflows of $524 million, Ark 21Shares Bitcoin ETF (ARKB) topped outflows with $150 million. Fidelity Wise Origin Bitcoin Fund (FBTC) also recorded outflows of $114 million.
Ethereum-based Spot ETF products witnessed inflows of $640 million on Thursday versus $729 million on Wednesday and $524 million on Tuesday. iShares Ethereum Trust (ETHA) topped with inflows of $520 million.
Despite the strong growth in institutional adoption, Ethereum slipped 1.1 percent overnight to trade at $4,644.94. Nevertheless, Ether has surged 19.4 percent in the past week and 47 percent over the past 30 days. Gains in 2025 have fallen to 39.4 percent but still surpass Bitcoin's year-to-date gains of 27.5 percent. Ether's current trading price is 5 percent below its all-time-high. The 24-hour trading range was between $4,735.73 and $4,461.28, versus the all-time high of $4,891.70 recorded on Nov 16, 2021.
While Bitcoin slipped to the 7th rank, Ethereum is continuing in the 22nd position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com. Only top-ranked Gold (market capitalization of $22.7 trillion) and NVIDIA (market capitalization of $4.44 trillion) command a market capitalization higher than the aggregate crypto market capitalization of $4.04 trillion.
3rd ranked XRP slipped 3.3 percent overnight to trade at $3.11, around 19 percent below the all-time high. With weekly losses of 6.1 percent, XRP is the highest-ranking crypto to trade with losses over the 7-day horizon.
5th ranked BNB also dropped 2 percent overnight at its current trading price of $846.56. BNB, the native coin of the BNB Chain ecosystem is trading 3 percent below the all-time high of $868.68 touched a day ago.
The price of 6th ranked Solana decreased 3.8 percent overnight to $195.26.
8th ranked Dogecoin slipped 4 percent overnight to trade at $0.2319. With losses of 28.5 percent, DOGE is the highest-ranking crypto to trade with losses on a year-to-date basis.
9th ranked TRON declined 2.7 percent to trade at $0.3588.
10th ranked Cardano slipped 2.1 percent overnight to trade at $0.9501.
With overnight gains of 2.7 percent, 11th ranked Hyperliquid (HYPE) is the highest-ranking crypto to trade with gains on an overnight basis.
72nd ranked Aerodrome Finance (AERO) topped overnight gains among the top 100 cryptocurrencies with a surge of 8 percent.
64th ranked SPX6900 (SPX), 78th ranked FLOKI (FLOKI) and 85th ranked dogwifhat (WIF) topped overnight losses among the top 100 cryptocurrencies with losses of more than 8 percent.
For More Cryptocurrency News, visit rttnews.com
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
