WASHINGTON (dpa-AFX) - Cryptocurrencies are trading sharply lower on Friday as fears about the potential disruption from AI models added to war-driven worries. Crypto market sentiment appeared impacted by reports that AI research firm Anthropic's yet-to be released AI model could significantly heighten cybersecurity risks. The continuing spike in crude oil prices attributed to the Middle East war and the growing bets of rate hikes by central banks also dampened crypto market sentiment.
Overall crypto market capitalization has plunged 4.2 percent overnight while Bitcoin touched a 24-hour low of $65,694 and Ethereum plunged to a low of $1,971 during the same period. Reports indicate that Anthropic's Claude Mythos AI model is feared to aggravate cybersecurity risks by finding and exploiting software vulnerabilities.
The disruption around the Strait of Hormuz that has exacerbated the war-driven supply concerns pushed crude oil prices further higher on Friday. Brent Oil Futures for June settlement are currently trading at $103.82, having gained 1.9 percent on an overnight basis. West Texas Intermediate (WTI) Crude Oil Futures for May settlement has also rallied 3.6 percent overnight to trade at $97.92. Monthly gains now exceed 43 percent. Brent crude had touched a high of $119.5 and WTI crude had risen to a high of $113.41 on March 9.
While cryptocurrencies have declined, gold and silver are trading higher. Sovereign bond yields and the Dollar Index have also spiked.
With the risk aversion in global markets dampening sentiment, CoinMarketCap's Fear and Greed Index dropped to 23 from 29 a day earlier a 32 a week earlier. All these readings in the tool to measure crypto market sentiment relate to the 'fear' territory.
Data from Coinglass shows long positions surpassing short positions in the 24-hour liquidation statistics, implying a selloff. Crypto liquidations - forced closure of a trader's leveraged position by an exchange or lending protocol for insufficient funds (margin or collateral) to cover potential losses - in the past 24 hours have increased to $486 million. Long positions amount to $441 million, far outweighing short positions of $45 million.
Amidst multiple bad news, overall crypto market capitalization has declined 4.2 percent in the past 24 hours to $2.28 trillion. The 24-hour trading volume has however jumped 20 percent to $103 billion. Only 4 of the top 100 cryptocurrencies are trading with overnight gains of more than a percent whereas 73 are trading with overnight losses of more than a percent.
Bitcoin (BTC), the largest cryptocurrency is trading 4.9 percent lower at $65,991.29. The current price is around 48 percent below the all-time high of $126,198.07 recorded on October 7, 2025. The original cryptocurrency has lost 5.4 percent in the past week and is saddled with losses of 24.6 percent till date in 2026.
Bitcoin Spot ETF products in the U.S. witnessed net outflows of $171 million on Thursday versus net inflows of $8 million on Wednesday. Market leader iShares Bitcoin Trust ETF (IBIT) topped with net outflows of $42 million.
Bitcoin is continuing in the 13th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
Ethereum (ETH) dropped 4.1 percent overnight as it traded at $1,985.14. The leading alternate coin is trading 60 percent below the all-time-high of $4,953.73 recorded on August 25, 2025.
Ethereum Spot ETF products in the U.S. witnessed net outflows increasing to $93 million on Thursday from $9 million on Wednesday. Market leader iShares Ethereum Trust ETF (ETHA) topped with net outflows of $140 million followed by Fidelity Ethereum Fund (FETH) that recorded net outflows of $24 million. However, the recently launched Ishares Staked Ethereum Trust ETF (ETHB) witnessed record inflows of $97 million.
Meanwhile, Ethereum has slipped 5 notches to the 73rd position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
4th ranked BNB (BNB) lost 3.4 percent overnight resulting in price decreasing to $607.95. BNB is trading 56 percent below the all-time high of $1,370.55 touched on October 13, 2025.
5th ranked XRP (XRP) erased 2.9 percent overnight and is currently trading at $1.33, around 65 percent below the all-time high of $3.84 touched on January 4, 2018.
The price of 7th ranked Solana (SOL) decreased 5.2 percent overnight to $82.99. SOL's current price is around 72 percent below its all-time-high of $294.33 recorded on January 19, 2025.
TRON (TRX) ranked 8th overall dropped 0.77 percent overnight and is currently changing hands at $0.3083. The trading price is 30 percent below the cryptocurrency's all-time high of $0.4407 recorded on December 4, 2024.
9th ranked Dogecoin (DOGE) slipped 1.9 percent overnight and is currently trading at $0.0898. DOGE is trading 88 percent below the peak price of $0.7376 recorded on May 8, 2021.
10th ranked Hyperliquid (HYPE) slipped more than 3 percent in the past 24 hours to trade at $38.41, around 35 percent below the all-time high of $59.39 recorded on September 18, 2025.
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