Cryptocurrencies experienced a downturn as markets processed the latest updates regarding regulatory matters, particularly after the legislative momentum of the CLARITY Act came to a halt. The resurgence of geopolitical tensions has sparked a safe haven demand for cryptocurrencies, effectively curbing potential losses. The overall crypto market capitalization has seen a decline of over 1 percent in the past 24 hours. Sentiment in the crypto markets took a hit as the Senate Banking Committee postponed its discussion on the highly awaited crypto market-structure bill. This came after crypto exchange Coinbase Global Inc. pulled its support for the most recent iteration of the legislation. Nonetheless, a number of prominent figures within the industry have expressed their backing for the Bill. The debate surrounding stablecoin reward programs continues to be a focal point of contention. In the latest developments, sources indicate that Bank of America CEO Brian Moynihan has cautioned that as much as $6 trillion in deposits, which accounts for approximately 30 to 35 percent of all U.S. commercial bank deposits, might shift from the conventional banking system to stablecoins if Congress allows interest payments on these digital tokens as outlined in the forthcoming legislation.
The crypto market is closely watching the speed and method of legislative enactment. The draft bill aiming to clarify the regulation of cryptocurrencies in the United States is highly anticipated to eliminate years of legal uncertainty that have hindered investments in the sector, alongside product development and institutional involvement. The decline in sentiment within the cryptocurrency market was also evident in the CMC Fear and Greed Index. The index has slipped into the “neutral” zone, dropping to 50 from 54 just a day prior. Data indicated that crypto liquidations have softened compared to the levels observed a day prior. Liquidations reached $238 million, a significant drop from $449 million the previous day. The liquidations included long positions totaling $179 million and short positions amounting to $59 million.
On Thursday, Bitcoin Spot ETF products in the U.S. recorded net inflows of $100 million, a notable drop from the $841 million seen on Wednesday. The market leader, iShares Bitcoin Trust ETF, recorded impressive inflows of $316 million, while the Fidelity Wise Origin Bitcoin Fund faced significant outflows totaling $189 million. On Thursday, Ethereum Spot ETF products in the U.S. recorded net inflows of $164 million, a slight decrease from the $175 million seen on Wednesday. The iShares Ethereum Trust ETF has seen impressive net inflows amounting to $149 million. The overall crypto market capitalization stands at $3.23 trillion, reflecting a decrease of 1.23 percent overnight. The 24-hour trading volume has seen a decline of 22.7 percent overnight, now standing at $114 billion. In the latest market update, just 7 of the top 100 cryptocurrencies are showing overnight gains exceeding one percent, while approximately 58 are experiencing losses greater than one percent.
Bitcoin has experienced a 1.2 percent drop, trading at $95,466.37, while Ethereum experienced a decline of 1.1 percent overnight, now trading at $3,308.92. Bitcoin is trading approximately 24 percent below its all-time high of $126,198.07, while Ethereum remains about 33 percent below its peak of $4,953.73. Bitcoin holds the 8th position and Ethereum the 35th in the global asset ranking, while Bitcoin dominates with a 59.07 percent share of the total crypto market and Ethereum holds 12.35 percent. Among major altcoins, BNB, XRP, Solana, Dogecoin, and Cardano all posted declines, while TRON gained 1.1 percent overnight. Amid rising interest in privacy coins, Dash led gains among the top 100 with an 8.4 percent surge, followed by Sky with a 4.3 percent increase, while Polygon and Zcash recorded notable losses.