The dollar strengthened and enthusiasm toward cryptocurrencies was dampened Thursday morning when the U.S. released better-than-expected economic data, which reduced expectations of a quick monetary relaxation by the Fed. Concerns are mounting as the market anticipates the upcoming PCE-based inflation readings set to be released on Friday, contributing to the prevailing weak sentiment. Bitcoin hit a low of $108,713 in the last 24 hours. The six-currency Dollar Index, which experienced a rally of 0.63 percent on Wednesday and 0.69 percent on Thursday, is now trading 0.11 percent lower on an overnight basis at 98.45.
The cryptocurrency market capitalization experienced a 2 percent decline overnight. Bitcoin dropped 2.5 percent, and Ethereum saw a decline of 3.7 percent over the last 24 hours. Gold Futures for December settlement are currently showing overnight gains of 0.19 percent, following gains of 0.18 percent on Thursday and a decline of 1.25 percent on Wednesday. The yellow metal is presently trading at $3,778.42 per troy ounce. Data indicated that the U.S. economy is expanding at an annualized rate of 3.8 percent in the second quarter of 2025, compared to the 3.3 percent reported in the second estimate. The robust performance observed since the third quarter of 2023 has tempered expectations for any imminent rate cuts by the Fed. According to data durable goods orders in the U.S. experienced a month-over-month increase of 2.9 percent in August, following a decline of 2.7 percent in July. The rise is anticipated to be indicative of elevated prices due to tariff-induced hikes in manufacturing expenses, rather than an uptick in volumes. Markets were expecting a decline of 0.5 percent. Data indicates that initial jobless claims in the U.S. have dropped to 218 thousand during the third week of September, contrary to market expectations of a rebound to 235 thousand. The lowest figure in two months has also led to a reduction in market expectations regarding rate cuts from the Fed.
The upcoming PCE-based inflation readings set to be unveiled. Headline annual PCE Price Index is projected to rise slightly to 2.7 percent from 2.6 percent in July, while the core component is expected to remain unchanged at 2.9 percent. The headline monthly PCE price index is anticipated to rise to 0.3 percent from July’s 0.2 percent, while the core component is projected to decrease to 0.2 percent from its current 0.3 percent level. Fed officials have reiterated concerns about inflation in their recent speeches, drawing the market’s focus to the PCE-based inflation readings. The prevailing negative sentiment in the crypto spot ETF space on Thursday had a notable impact on the overall crypto market sentiment. In the U.S., Bitcoin Spot ETFs experienced outflows totaling $253 million, while Ethereum Spot ETFs saw outflows amounting to $251 million. The CMC Fear and Greed Index, has dropped significantly into the “fear” zone, registering a reading of 32. The reading stood at 41 the previous day, indicating a “neutral” market condition. The overall crypto market capitalization has seen a decline of nearly 2 percent in the last 24 hours, now standing at $3.75 trillion. The 24-hour trading volume, however, surged over 31 percent to reach $231 billion. In the last 24 hours, over 80 percent of the top 100 cryptocurrencies have experienced a decline of more than one percent, while only 2 out of the top 100 have managed to achieve gains exceeding one percent during the same timeframe. Bitcoin is presently valued at $109,004.89, reflecting a decline of 2.5 percent over the past night.
The cryptocurrency is presently trading approximately 12 percent under the all-time high of $124,457.12, which was reached on August 14. Ethereum experienced a decline of 3.7 percent overnight, now trading at $3,881.52. Ether is currently trading at a price that is 22 percent lower than its all-time high. The trading range over the past 24 hours fluctuated between $4,053.16 and $3,829.01. XRP, currently holding the 4th rank, experienced a decline of 3.7 percent overnight, bringing its trading price to $2.72, which is approximately 29 percent lower than its all-time high. 5th ranked BNB experienced a 5 percent decline overnight, now trading at $938.53. The 6th ranked Solana saw a decline of 5.2 percent overnight, bringing its price down to $192.57. Dogecoin, currently ranked 8th, experienced a decline of 4.1 percent overnight and is now trading at $0.2236. TRON, now positioned 9th overall, saw a slight increase of 0.04 percent overnight and is currently trading at $0.3333. Cardano, currently holding the 10th rank, experienced a decline of 3.3 percent overnight, bringing its trading price to $0.7631. Plasma, currently ranked 48th, led the overnight gains in the top 100 cryptocurrencies, experiencing a remarkable surge of 47.6 percent.
The XPL token experienced a surge following the launch of Plasma’s mainnet on September 25, highlighting a pivotal moment in the stablecoin-focused Layer 1 blockchain arena. The 50th ranked Kaspa has seen a 1 percent increase over the last 24 hours. 43rd ranked Story emerged as the leader in recovering from overnight losses among the top 100 cryptocurrencies, despite experiencing a decline of 26.4 percent. The 14th ranked Avalanche has seen a decline of over 10 percent in the last 24 hours.