WASHINGTON (dpa-AFX) - Cryptocurrencies declined heavily in the past 24 hours as markets grappled with multiple negative news and market actions that catalyzed a selloff in digital currencies. Lingering fears of a Fed rate hike as well as hawkish comments from Bank of Japan dampened market sentiment triggering massive outflows from Bitcoin Spot ETF products as well as heavy liquidations of crypto long positions. Bitcoin traded between $63,098 and $59,030 in the past 24 hours. Overall crypto market capitalization decreased a little more than a percent during the same period.
The price movements in the crypto market came also amidst the dollar's retreat, an uptick in Wall Street futures, an extended decline in crude oil prices as well as a mixed yield pattern in the sovereign bond markets.
Anxiety ahead of the PCE-based inflation readings due from the U.S. on Thursday morning also weighed on sentiment. Both the headline and core readings for the month of May of the Fed's preferred inflation gauge are expected to rise from the levels recorded in April, thus exerting pressure on the Fed to hike interest rates to combat inflation.
The CME FedWatch tool that tracks the expectations of interest rate traders shows the likelihood of a rate hike by the Fed in July at 34 percent, in September at 67 percent, in October at 76 percent and in December at 84 percent. Expectations of an increase in interest rates have dampened sentiment for cryptocurrencies, on account of the non-interest-bearing nature of the asset and the increasing opportunity cost of holding it when general interest rates rise.
Bitcoin Spot ETF products in the U.S. witnessed net outflows jumping to $469 million on Wednesday from $114 million on Tuesday and $68 million on Monday. iShares Bitcoin Trust (IBIT) topped with net outflows of $239 million followed by Fidelity Wise Origin Bitcoin Fund (FBTC) that recorded net outflows of $121 million.
Crypto market sentiment as measured by the CMC Crypto Fear and Greed Index remains steady at 18, in the extreme fear territory. It was at 20 (Fear) a week ago and 40 (Neutral) a month ago.
The sentiment of extreme fear manifested in the crypto liquidation statistics over the past 24 hours also. Data from Coinglass shows crypto liquidations during the past 24 hours at $1 billion, comprising long positions of $780 million and short positions of $221 million.
Despite the U.S. dollar's weakness and the mild overnight decline of 0.12 percent in the six-currency Dollar Index, dollar-denominated prices of most cryptocurrencies have declined. More than 45 of the top 100 cryptocurrencies are trading with overnight losses of more than a percent whereas only 17 of the top 100 cryptocurrencies are trading with overnight gains of more than a percent.
With prices declining, aggregate crypto market capitalization has decreased 1.40 percent in the past 24 hours to $2.12 trillion. Meme category witnessed a drop of almost 12 percent in market capitalization amidst a plunge of 72 percent in the market cap of 53rd ranked MemeCore (M). The decline in overall crypto market capitalization was accompanied by a 61-percent jump in trading volumes.
Bitcoin (BTC), the largest cryptocurrency is trading 1.6 percent lower at $61,644.39. The current price is around 51 percent below the all-time high of $126,198.07 recorded on October 7, 2025. The original cryptocurrency has lost 4 percent in the past week and is still saddled with losses of close to 30 percent on a year-to-date basis.
Bitcoin has declined one notch to the 16th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com. The decline comes amidst a 13-percent surge in the market capitalization of SK hynix Inc., a South Korea-based semiconductor manufacturer that has moved up to the 15th rank. Shares of the Seoul-traded scrip rallied as its U.S. listing plans buoyed valuation hopes. Bitcoin is the only cryptocurrency ranked among the top 100 in the above-mentioned global ranking.
Ethereum (ETH) slipped 1.1 percent overnight as it traded at $1,646.58. The leading alternate coin is trading 67 percent below the all-time-high of $4,953.73 recorded on August 25, 2025. The 24-hour trading ranged between $1,687.49 and $1,551.48.
Unlike the pattern of Bitcoin Spot ETF products, Ethereum Spot ETF products in the U.S. witnessed net outflows declining to $30 million on Wednesday from $82 million on Tuesday. Fidelity Ethereum Fund (FETH) topped with net outflows of $16 million. 4th ranked BNB (BNB) dropped 1.4 percent overnight resulting in price decreasing to $567.91. BNB is trading 59 percent below the all-time high of $1,370.55 touched on October 13, 2025.
6th ranked XRP (XRP), a payments-focused cryptocurrency lost 1.6 percent overnight and is currently trading at $1.07, around 72 percent below the all-time high of $3.84 touched on January 4, 2018.
The price of 7th ranked Solana (SOL) decreased 0.56 percent overnight to $68.83. SOL's current price is around 77 percent below its all-time-high of $294.33 recorded on January 19, 2025.
TRON (TRX) ranked 8th overall shed 0.64 percent overnight and is currently changing hands at $0.3284. The trading price is 25 percent below the cryptocurrency's all-time high of $0.4407 recorded on December 4, 2024.
9th ranked Hyperliquid (HYPE) rallied 1.9 percent overnight, to trade at $63.39, around 18 percent below the all-time high of $76.85 recorded on June 16.
Memecoin Dogecoin (DOGE) ranked 10th overall lost 2.4 percent overnight and is currently trading at $0.0768. DOGE is trading 90 percent below the peak price of $0.7376 recorded on May 8, 2021.
69th ranked Aave (AAVE) topped overnight gains among the top 100 cryptocurrencies with a surge of more than 14 percent.
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