Cryptocurrencies experienced another volatile session, plunging into the red as bond yields continued to rise. This shift comes alongside a moderation in expectations for Fed rate cuts, a strengthening dollar, an increase in gold prices, and a tech sell-off driven by concerns over inflated equity market valuations. The unprecedented duration of the U.S. government shutdown, coupled with the lack of official data to evaluate economic strength, significantly impacted sentiment. The robust link between the tech sector and the cryptocurrency market intensified the downward trajectory in cryptocurrencies struggling with the collapse of a dollar-pegged stablecoin. Mild inflows have been observed in Bitcoin and Ether Spot ETF products in the U.S., though losses remain limited. Market sentiment took a hit as participants processed the news surrounding the collapse of the stablecoin Elixir deUSD, which was pegged to the U.S. Dollar. The stablecoin has de-pegged from the U.S. Dollar, hitting a low of $0.02691 just a few hours ago. The stablecoin’s market capitalization, which stood at $96.7 million on Wednesday, has now plummeted to $4.8 million. DeFi liquidity provider Elixir has announced the suspension of support for its synthetic stablecoin, deUSD, following the significant impact of Stream Finance’s $93 million loss earlier this week. The protocol has allegedly processed redemptions for 80 percent of deUSD holders.
Stablecoins currently hold a market capitalization of $313.6 billion, representing 9.3 percent of the total cryptocurrency market. The cryptocurrency market capitalization saw a decline of 1.8 percent overnight, settling at $3.37 trillion. The 24-hour trading volume surged by 12 percent, reaching a total of $180 billion. In the latest market movements, 47 of the top 100 cryptocurrencies have seen gains exceeding 1 percent overnight. Conversely, 24 cryptocurrencies, including major players like Bitcoin, Ethereum, XRP, and Solana, have experienced declines of more than 1 percent. According to data, the past 24 hours have seen crypto liquidations totaling $607 million. This figure includes $395 million from long positions and $212 million from short positions. Liquidations occur when an exchange or lending protocol forcibly closes a trader’s leveraged position due to insufficient funds (margin or collateral) to cover potential losses. The 6-currency Dollar Index, which gauges the dollar’s strength against a selection of currencies, is presently at 99.79, compared to 99.73 at the last close.
Bond yields have strengthened across various regions and tenors, leading to a decline in sentiment for cryptocurrencies. Yields on 10-year U.S. Treasuries surged by 0.32 percent, while ten-year bonds in Germany, France, the U.K., and other regions experienced an increase of over 0.40 percent. The sentiment was also influenced by a moderation in rate cut expectations from the Fed. Reports shows a 64.9 percent probability for a quarter-percentage rate cut in December. Just a day prior, it stood at 69.6 percent. On Thursday, Bitcoin Spot ETF products saw inflows totaling $240 million, a notable increase from the $137 million outflows recorded on Wednesday. On Wednesday, Ethereum Spot ETF products saw inflows of $13 million, contrasting with outflows that reached $119 million. Wall Street Futures are hovering near the flatline, while European benchmarks are currently trading under the flatline, and Asian markets wrapped up the trading day predominantly in the red. Gold Futures set for December delivery are presently priced at $4,011.95 per troy ounce, reflecting overnight gains of 0.52 percent. The yellow metal has surged nearly 50 percent in value over the last year.
Bitcoin experienced a 2.2 percent drop overnight, settling at $100,691.73, which places it approximately 20 percent beneath its all-time high of $126,198.07 reached on October 7. The original cryptocurrency experienced a decline of 8.3 percent in the past week, which has capped its year-to-date gains at 7.8 percent. The trading activity over the past 24 hours fluctuated between $103,557.65 and $100,336.87. Ethereum experienced a decline of 3 percent overnight, now trading at $3,279.79. As of 2025, losses have reached 1.6 percent. Ether is currently trading at a price that is 34 percent below its all-time high, with trading fluctuating between $3,412.03 and $3,245.28. The 4th ranked XRP experienced a decline of 4.5 percent overnight, bringing its current trading price down to $2.19. 5th ranked BNB saw a 0.4 percent increase overnight, bringing its price to $954.98. The 6th ranked Solana saw a decline of 2.3 percent overnight, bringing its price down to $154.70. TRON, currently positioned 8th overall, experienced a decline of 0.55 percent overnight and is now trading at $0.2854. Dogecoin, ranked 9th, experienced a rally of 1.3 percent overnight and is now trading at $0.1648, while Cardano, currently holding the 10th rank, saw a 0.72 percent increase overnight to $0.5383. Filecoin surged nearly 70 percent, Internet Computer rose 33.4 percent, while Decred declined 16.4 percent and SPX6900 fell over 7 percent.