WASHINGTON (dpa-AFX) - Negative sentiment prevails in the crypto markets even as global markets reacted to the cooling trend in inflation revealed by the latest U.S.CPI reading. While precious metals rallied, major cryptocurrencies are trading with overnight losses. Bond yields also eased emphatically across regions while the six-currency Dollar Index edged up.
Data released by the U.S. Bureau of Labor Statistics on Friday showed annual headline inflation at 2.4 percent in January, declining from 2.7 percent in December and falling below market expectations of 2.5 percent. The core component thereof declined to 2.5 percent from 2.6 percent in the previous month in line with expectations.
Headline inflation on a month-on-month basis which was expected to remain steady at 0.3 percent unexpectedly declined to 0.2 percent. The core component thereof increased from 0.2 percent to 0.3 percent as expected by markets.
Nevertheless, markets responded to the cooling inflation in a divergent manner. The dollar index which measure's the dollar's strength against a basket of six currencies and a perceived proxy for interest rate expectations from the Federal Reserve, is trading flat at 96.93.
However precious metals have recorded strong gains. While gold is trading with overnight gains of 1.5 percent, silver has added 3.7 percent, and platinum has rallied 2.5 percent on a daily basis.
Among digital currencies, Bitcoin, Ethereum, XRP, BNB, Solana etc. are all trading with heavy overnight losses. Overall cryptocurrency market capitalization has also declined 0.91 percent to $2.3 trillion. The 24-hour trading volume has also increased 6 percent overnight to $98 billion.
Sentiment was impacted by bearish market outlooks as well as pervasive fear. The CMC Fear and Greed Index, a proprietary tool developed by CoinMarketCap to measure the prevailing sentiment in the cryptocurrency market shows a reading of 8 denoting extreme fear.
Bitcoin, the largest cryptocurrency has lost more than 1 percent in the past 24 hours to trade at $67,440.69. The current price is around 47 percent below the all-time high of $126,198.07 recorded on October 7, 2025. The original cryptocurrency has lost 0.5 percent in the past week and is grappling with year-to-date losses of close to 23 percent. The 24-hour trading ranged between $67967.02 and $65,092.11.
Bitcoin is continuing in the 13th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
Bitcoin Spot ETF products in the U.S. witnessed net outflows rising to $410 million on Thursday from $276 million a day earlier. iShares Bitcoin Trust ETF (IBIT) topped with outflows of $158 million followed by Fidelity Wise Origin Bitcoin Fund (FBTC) that recorded outflows of $104 million.
Ethereum has slipped 0.33 percent overnight as it declined to $1,982.85. The leading alternate coin is now trading 60 percent below the all-time-high of $4,953.73 recorded on August 25, 2025. The 24-hour trading ranged between $1,983.23 and $1,897.33.
Meanwhile, Ethereum has slipped one notch to the 80th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
Ethereum Spot ETF products in the U.S. witnessed net outflows of $113 million on Thursday versus $129 million a day earlier. on Wednesday versus net inflows of $14 million on Tuesday. Fidelity Ethereum Fund (FETH) topped with outflows of $44 million.
4th ranked XRP slipped 1 percent overnight to trade at $1.38, around 64 percent below the all-time high of $3.84 touched on January 4, 2018.
5th ranked BNB plunged 2.3 percent overnight resulting in price decreasing to $599.65. BNB is trading 56 percent below the all-time high of $1,370.55 touched on October 13, 2025.
The price of 7th ranked Solana decreased 0.67 percent overnight to $81.02. SOL's current price is around 72 percent below its all-time-high of $294.33 recorded on January 19, 2025.
TRON ranked 8th overall shed 0.22 percent overnight and is currently changing hands at $0.2774. The trading price is 37 percent below the cryptocurrency's all-time high of $0.4407 recorded on December 4, 2024.
9th ranked Dogecoin also lost 0.64 percent overnight and is currently trading at $0.09369. DOGE is now trading 87 percent below the previous peak of $0.7376 recorded on May 8, 2021.
10th ranked Bitcoin Cash (BCH) jumped 2.98 percent and is currently trading at $530.58 which is 88 percent below the cryptocurrency's record high $4,355.62 touched on December 20, 2017.
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