Cryptocurrency Market Declines as Major Tokens Lose Value
The cryptocurrency market fell again during early US trading. Major tokens dropped in value. Overall market capitalization fell over 3% to $3.69 trillion, according to CoinMarketCap data.
Bitcoin Dips Below $106K, Ethereum Drops to $3,500
Bitcoin (BTC) lost 4.04% in one day. Trading volume surged 72% to $54.91 billion. This indicates many traders were selling. Bitcoin trades at about $105,769, down from an intraday high near $110,000. It remains below its all-time high of $126,000 set last month.
Ethereum (ETH) also faced selling pressure. The token dropped 7.21% to $3,500. Its 24-hour trading volume reached $43 billion. Ethereum’s market cap fell 7.17%, now standing at $431 billion.
Fed Signals Uncertainty Over Future Rate Cuts
The recent sell-off followed hints from the U.S. Federal Reserve about interest rate decisions. Fed Chair Jerome Powell said the chance of another rate cut in December is “not a foregone conclusion” in a recent statement. This outlook eased pressure on the U.S. dollar and reduced investor appetite for risky assets like cryptocurrencies.
Treasury Secretary Scott Bessent warned in a CNN interview that the Fed’s tight policy has slowed parts of the economy. He said it “may have driven parts of the economy into recession.” Investors began taking profits, adding selling pressure.
Large Liquidations and Bitcoin ETF Outflows Worsen Market Drop
Data from CoinGlass shows over $1.16 billion liquidated during the sell-off. More than 300,000 traders were affected. Long positions accounted for $1.07 billion of the liquidations, short positions $89 million. Ethereum faced $85 million in forced liquidations and Bitcoin $74.6 million.
Bitcoin spot ETFs also saw major outflows. According to Fairside, U.S. spot Bitcoin ETFs had $1.15 billion in withdrawals last week. The top funds affected included BlackRock, ARK Invest, and Fidelity.
