WASHINGTON (dpa-AFX) - The unabated spike in crude oil prices has dragged down cryptocurrencies, while globally, markets brace for the inflation update from the U.S as well as the Congressional testimony by Fed Chair Kevin Warsh. Massive outflows from U.S.-listed Bitcoin Spot ETF products on Monday also weighed on sentiment. Overall cryptocurrency market capitalization has declined more than half percent in the past 24 hours. Bitcoin, the leading cryptocurrency has touched a 24-hour low of $61,769.
Data for June to be released on Tuesday morning by the U.S. Bureau of Labor Statistics is expected to show annual headline inflation declining to 3.8 percent from 4.2 percent at the end of the previous month. The core component thereof, excluding the volatile food and fuel component is however expected to be steady at 2.9 percent. Markets expect the monthly headline inflation to record -0.1 percent versus 0.5 percent at the end of previous month. The core component thereof is however expected to remain steady at 0.2 percent.
Despite the expected soft inflation readings, anxiety is writ large as Brent crude oil which was at $72.92 on June 30 has since spiked to $86.88 whereas WTI crude oil has jumped to $80.67 from the level of $69.50 on June 30.
Fears of interest rates remaining high for longer than anticipated have been reinforced with the fresh spike in crude oil prices. Markets anticipate a 39-percent probability for the Fed to raise rates from the current level of 3.50-3.75 percent in the ensuing FOMC due in a fortnight. The CME FedWatch tool also shows a 74-percent probability for a rate hike in September and an 81-percent chance for a rate hike in October. Only 11 percent probability is expected for the Fed rates to remain at the current level of 3.50-3.75 percent after the last FOMC of the year, in early December.
With the feared increase in general interest rates potentially lifting the opportunity cost of holding cryptocurrencies, market sentiment has been dampened. Aggregate crypto market capitalization has dropped 0.66 percent in the past 24 hours to $2.16 trillion. Only 14 of the top 100 cryptocurrencies are trading with overnight gains of more than a percent whereas around 40 are trading with overnight losses of 1 percent or more. The decline in overall crypto market capitalization is however accompanied by a 12-percent spike in trading volumes.
Continuing with the trend a day earlier, liquidation of long positions far exceeds liquidation of short positions, implying doubts about the price rise bets placed. Data from Coinglass shows a liquidation cascade, as liquidations aggregate to $277 million during the past 24 hours. While long positions account for $205 million, short positions liquidated add up to $72 million only.
Bitcoin (BTC), the largest cryptocurrency is trading 0.86 percent lower at $62,501.66. The current price is around 50 percent below the all-time high of $126,198.07 recorded on October 7, 2025. The original cryptocurrency is still saddled with losses of more than 28 percent on a year-to-date basis.
Bitcoin Spot ETF products in the U.S. witnessed net outflows of $425 million on Monday versus net inflows of $90 million on Friday. Fidelity Wise Origin Bitcoin Fund (FBTC) topped with net outflows of $246 million followed by iShares Bitcoin Trust ETF that recorded net outflows of $186 million.
Bitcoin is continuing in the 14th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com. The leading cryptocurrency is juxtaposed between Tesla ranked 13th and Samsung ranked 15th.
Ethereum (ETH) is trading 0.10 percent lower at $1,783.40. The leading alternate coin is trading 64 percent below the all-time-high of $4,953.73 recorded on August 25, 2025. The 24-hour trading ranged between $1,791.83 and $1,749.35. Ethereum is still grappling with year-to-date losses of close to 40 percent.
Ethereum Spot ETF products in the U.S. witnessed net outflows of $15 million on Monday versus net inflows of $18 million on Friday. Fidelity Ethereum Fund (FETH) accounted for the outflows entirely.
Ethereum is continuing in the 97th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
4th ranked BNB (BNB) edged up 0.03 percent overnight resulting in price increasing to $569.36. BNB is trading 58 percent below the all-time high of $1,370.55 touched on October 13, 2025.
The price of 7th ranked Solana (SOL) dropped 2.2 percent overnight to $74.91. SOL's current price is around 75 percent below its all-time-high of $294.33 recorded on January 19, 2025.
TRON (TRX) ranked 8th overall slipped 1.7 percent overnight and is currently changing hands at $0.3244. The trading price is 26 percent below the cryptocurrency's all-time high of $0.4407 recorded on December 4, 2024.
9th ranked Hyperliquid (HYPE) plunged 2.5 percent overnight, to trade at $63.52, around 17 percent below the all-time high of $76.85 recorded on June 16. U.S.-listed Hyperliquid Spot ETF products witnessed net outflows of $4 million on Monday.
Memecoin Dogecoin (DOGE) ranked 10th overall lost 0.4 percent overnight and is currently trading at $0.0721. DOGE is trading 90 percent below the peak price of $0.7376 recorded on May 8, 2021.
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