WASHINGTON (dpa-AFX) - Cryptocurrencies tumbled and Bitcoin dropped to a little above $95k as markets digested strong economic data from the U.S. Better-than-expected labor market data and services PMI released on Tuesday implied that the Federal Reserve could afford to keep interest rates restrictive for longer. Anxiety ahead of the release of the FOMC minutes on Wednesday also weighed on sentiment.
Institute for Supply Management's data on Tuesday showed U.S. Services PMI at 54.1 in December versus 52.1 in the previous month and surpassing expectations of a reading of 53.3.
Data released by the U.S. Bureau of Labor Statistics on Tuesday showed the number of job openings rising to 8.1 million in November from an upwardly revised 7.8 million in October. Markets had anticipated a level of 7.7 million.
The twin readings reinforced the resilience of the U.S. economy and dampened Fed rate cut hopes. The CME FedWatch tool that tracks the expectations of interest rate traders currently shows expectations of a pause by the Fed in the January review rising to 95.2 percent. The same was at 93.6 percent a day earlier, 90.4 percent a week earlier and 62.9 percent a month earlier. Likewise, expectations of a status quo on rates by the Fed in March has risen to 62.8 percent from 61.8 percent a day earlier, 47 percent a week earlier and 27.7 percent a month earlier.
In response to the fading rate cut hopes, overall crypto market capitalization dropped to a low of $3.31 trillion before recovering to its current level of $3.34 trillion. More than 90 percent of the top 100 cryptocurrencies are trading with overnight losses of more than a percent as high interest rates bode ill for cryptocurrencies.
Bearish sentiment towards cryptocurrencies reverberated in the ETF markets also. Inflows to Bitcoin-based ETF products in the U.S. plunged to $52 million from almost $1 billion a day earlier. Ethereum-based ETF products witnessed outflows of $87 million versus inflows of $129 million a day earlier.
Outflows of $213 million from Ark 21Shares Bitcoin ETF (ARKB), $125 million from Grayscale Bitcoin Trust (GBTC), $114 million from Bitwise Bitcoin ETF (BITB) and $86 from Fidelity Wise Origin Bitcoin Fund (FBTC) almost eclipsed the inflows of $596 million recorded by iShares Bitcoin Trust (IBIT).
No Ether-based Spot ETFs recorded net inflows on Tuesday. Fidelity Ethereum Fund (FETH) recorded outflows of $68 million, followed by Grayscale Ethereum Mini Trust ETF (ETH) that saw outflows of $11 million and Grayscale Ethereum Trust ETF (ETHE) that recorded outflows of $8 million.
Bitcoin, which had touched a high of $102,712.49 on Tuesday declined to a low of $95,230.55 on Wednesday. It is currently trading 11 percent below the all-time-high at $95,933.15, implying overnight losses of 5.3 percent. Despite weekly gains of more than 3 percent, the leading cryptocurrency with a market share of 56.8 percent is trading with losses of 2.7 percent over the 30-day horizon. Despite the tumble, Bitcoin continues to be ranked 7th in global ranking of all assets as per market capitalization published by companiesmarketcap.com.
Ethereum's overnight losses are much steeper at 8 percent. Despite weekly gains of 1.3 percent, Ether has lost 13.4 percent in the past 30 days. Ether's current trading price of $3,361.19 is 31 percent below the record high. The most valued alternate coin that dominates 12.1 percent of the overall crypto market ranged between $3,658.55 and $3,307.23 in the past 24 hours. Amidst the decline, Ethereum slipped one notch to be ranked 26th in global ranking of all assets as per market capitalization published by companiesmarketcap.com.
4th ranked XRP (XRP) slipped 5.2 percent overnight to trade at $2.33, around 39 percent below the all-time high touched in January 2018. The cryptocurrency's weekly gains are close to 11 percent.
5th ranked BNB (BNB) declined 4.1 percent overnight and 1.1 percent in the past week at its current trading price of $698.44. BNB is currently trading 12 percent below the all-time high touched on December 4, 2024. BNB is also the highest-ranking crypto to trade with losses over the 7-day horizon.
The price of 6th ranked Solana (SOL) decreased 8.2 percent overnight. With weekly gains of 3.8 percent, SOL is currently trading at $197.20, around 25 percent below its record high on November 23, 2024.
7th ranked Dogecoin (DOGE) plunged 10.9 percent overnight to trade at $0.3489. Having leaped 11.22 percent in the past week, DOGE is trading 53 percent below the previous peak scaled in May 2021.
9th ranked Cardano (ADA) tumbled 12.8 percent overnight to trade at $0.9945. ADA is currently trading 68 percent below the record high touched in September 2021.
10th ranked TRON (TRX) erased 7.3 percent overnight to trade at $ 0.25. TRX has slipped 1.2 percent in the past week and 16.6 percent over the past 30 days. The trading price is 43 percent below the cryptocurrency's all-time high recorded on December 4, 2024.
75th ranked SPX6900 (SPX) that recorded an overnight gain of 4.5 percent is the only cryptocurrency among the top 100 to trade with gains of more than a percent.
54th ranked Celestia (TIA) topped overnight losses with a decline of 16.6 percent. 25th ranked Hyperliquid (HYPE) and 76th ranked Gala (GALA) followed with losses of more than 15 percent.
For More Cryptocurrency News, visit rttnews.com
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
