WASHINGTON (dpa-AFX) - Positive sentiment prevails in the crypto market and Bitcoin breached the $116k level amidst continued expectations of rate cut by the Federal Reserve. Overall market capitalization increased more than a percent in the past 24 hours.
The rally in crypto markets is despite the sticky inflation update from the U.S. released on Thursday. Data released by the U.S. Bureau of Labor Statistics showed headline annual inflation rising as expected to 2.9 percent from 2.7 percent in July. The core component remained steady at 3.1 percent matching expectations. On a month-on-month basis, headline inflation increased to 0.4 percent from 0.2 percent in July. Markets had expected it to edge up to 0.3 percent. The core component however remained steady at 0.3 percent as expected.
Despite data revealing price pressures and renewing concerns about stagflation, markets expect a dovish stance from the Federal Reserve. Rate cut expectations have become stronger over the course of the past 24 hours. The CME FedWatch tool that tracks the expectations of interest rate traders shows expectations of a 50-basis points rising to 7.5 percent from 6.1 percent a day earlier. Expectations of a 25-basis points rate cut decreased to 92.5 percent from 93.9 percent a day earlier.
The hardening in sovereign bond yields and the rebound in the U.S. Dollar failed to dampen crypto market sentiment. More than 50 percent of the top 100 cryptocurrencies are still trading with overnight gains of more than a percent. On the contrary, only 7 are trading with overnight losses of more than a percent.
Overall cryptocurrency market capitalization has increased 1.1 percent overnight to $4 trillion.
Meme category cryptos witnessed a surge of 3.6 percent in market capitalization. The Made in America cryptocurrencies recorded an overnight addition of 1.8 percent in market capitalization. Market capitalization of the cryptocurrencies identified for U.S. Strategic Crypto Reserve also gained 1.3 percent overnight.
Bitcoin remains at the 8th position whereas Ethereum has improved to the 22nd rank in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
Crypto ETF products in the U.S. continued to record strong inflows, supporting sentiment. Bitcoin-based Spot ETF products in the U.S. witnessed inflows of $553 million versus $742 million on Wednesday. versus inflows of $23 million on Tuesday. iShares Bitcoin Trust ETF (IBIT) topped with inflows of $366 million.
Ethereum-based Spot ETF products recorded net inflows of $113 million on Thursday versus $172 million a day earlier. Fidelity Ethereum Fund (FETH) topped with inflows of $88 million.
Bitcoin which touched a high of $116,317 in the past 24 hours has since retreated to $114,916 implying overnight gains of 0.72 percent and weekly addition of 1.5 percent. Though BTC has shed 5.4 percent over the past 30 days, year-to-date gains still exceed 23 percent. The cryptocurrency is currently trading about 8 percent below the all-time-high of $124,457.12 recorded on August 14.
Ethereum's surge of 2.3 percent has lifted the top-ranked alternate coin to $4,512.74, just 9 percent below its all-time-high. Despite losses of 3.9 percent over the 30-day horizon, Ethereum has gained 35.5 percent in 2025. The 24-hour trading ranged between $4,561 and $4,398.
3rd ranked XRP added 1.2 percent overnight to trade at $3.03, around 21 percent below the all-time high.
Solana jumped to the 5th rank overall with an overnight surge of 4.9 percent, amidst renewed institutional demand. The coin is currently trading at $238.82, around 19 percent below its all-time high. SOL is also the highest-ranking cryptocurrency to trade with gains over the 30-day horizon.
6th ranked BNB gained 1.1 percent overnight at its current trading price of $908.60. BNB had touched an all-time high of $909.38 earlier in the trade.
8th ranked Dogecoin also leaped 5 percent overnight and is currently changing hands at $0.2618. DOGE is the highest-ranking cryptocurrency and the only one among the top 10 to trade with losses on a year-to-date basis.
TRON ranked 9th overall added 0.8 percent overnight and is currently changing hands at $0.3477.
10th ranked Cardano rallied 1percent overnight to trade at $0.8867.
49th ranked MemeCore (M) topped overnight gains among the top 100 cryptocurrencies with a gain of more than 10 percent. 56th ranked Bonk (BONK) followed with gains of 7.3 percent. 54th ranked Pump.fun (PUMP) and 50th ranked Pudgy Penguins (PENGU) also added more than 6.7 percent in the past 24 hours.
42nd ranked Story (IP) topped overnight losses among the top 100 cryptocurrencies with a decline of 4.4 percent. 39th ranked Worldcoin (WLD), 62nd ranked Sky (SKY), 28th ranked Ethena (ENA) and 34th ranked Bittensor (TAO) shed more than 2 percent in the past 24 hours.
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