A major selloff in the semiconductor industry has lowered confidence in the cryptocurrency market, adding to the growing anxiety ahead of the FOMC decision that is scheduled to be revealed on Wednesday. Sentiment was also impacted by waning hopes that the Clarity Act would be passed before the Senate’s summer break in August. Overall cryptocurrency market capitalisation experienced a decline exceeding 3 percent, with Bitcoin fluctuating between $65,648 and $63,016 over the past 24 hours. Sentiment in crypto markets reflected the unease associated with the Federal Reserve’s forthcoming interest rate decision, scheduled for announcement on Wednesday afternoon. With inflation persisting above the Federal Reserve’s 2-percent target, market participants expect a rise in interest rates as a strategy to mitigate the inflationary pressures affecting the economy. According to the CME FedWatch tool, which tracks the expectations of interest rate traders, the likelihood of a quarter percent increase on Wednesday is approximately 32 percent. For the forthcoming FOMC meeting in September, markets have allocated a 57-percent likelihood to a quarter percent rate increase and a 22-percent likelihood to a half percent rate increase.
A deepening selloff in chip stocks has also influenced crypto market sentiment as markets brace for earnings updates from major technology companies. Asian markets wrapped up the trading session with notable declines, particularly highlighted by South Korea’s KOSPI benchmark, which saw a decrease surpassing 10 percent. The tech-heavy Nasdaq Composite on Wall Street is currently facing declines of more than one percent. In the past 24 hours, the overall market capitalisation of cryptocurrencies has contracted by 3.6 percent, currently amounting to $2.16 trillion. Among the top 100 cryptocurrencies, a solitary asset is witnessing an overnight gain surpassing one percent, whereas more than 80 are enduring overnight losses of one percent or more. The decline in overall crypto market capitalisation was, however, accompanied by a 15-percent spike in trading volumes. The decline in crude oil prices, coupled with the U.S. Dollar’s mild retreat, contributed to mitigating losses for the digital assets. Bitcoin, the largest cryptocurrency, is currently trading 4.1 percent lower at $62,883.40. The current price is roughly 50 percent below the all-time high of $126,198.07, which was noted on October 7, 2025. The original cryptocurrency has recorded a decline of 28.1 percent year-to-date.
Bitcoin Spot ETF products in the U.S. saw net outflows of $12 million on Monday, marking a significant decline from the $240 million in net outflows noted on Friday. iShares Bitcoin Trust ETF saw net outflows totalling $9 million. Bitcoin continues to hold the 13th position in the global ranking of all assets based on market capitalisation data. The leading cryptocurrency holds a position between SpaceX at 12th and Tesla at 14th. Ethereum is presently valued at $1,865.71, reflecting a decline of 5.4 percent. The leading alternate coin is presently valued at 62 percent beneath its peak of $4,953.73, achieved on August 25, 2025. The 24-hour trading exhibited fluctuations ranging from $1,974.68 to $1,865.64. Ethereum persists in grappling with year-to-date losses surpassing 37 percent. Ethereum Spot ETF products in the U.S. saw net inflows of $12 million on Monday, in stark contrast to the net outflows of $71 million observed on Friday. The iShares Ethereum Trust ETF represented the totality of the flows. Ethereum has dropped to the 86th position in the global ranking of all assets by market capitalisation.
The fourth-ranked BNB experienced a decline of 2 percent overnight, leading to a price reduction to $564.00. BNB is presently situated 59 percent below its peak of $1,370.55, attained on October 13, 2025. 6th ranked XRP, a payments-focused cryptocurrency, experienced a decline of 5.8 percent overnight and is presently trading at $1.04, approximately 73 percent below its all-time high of $3.84 reached on January 4, 2018. The price of 7th ranked Solana experienced a decline of 6.2 percent overnight, settling at $72.44. SOL’s current price is roughly 75 percent below its peak of $294.33, attained on January 19, 2025. TRON, positioned 8th overall, encountered a decrease of 1.8 percent overnight and is presently valued at $0.3244. The trading price is currently 26 percent lower than the cryptocurrency’s all-time high of $0.4407, achieved on December 4, 2024. Hyperliquid, ranked 9th, experienced a decline of 9.6 percent overnight, trading at $54.05, which is approximately 30 percent lower than its all-time high of $76.85 reached on June 16. Memecoin Dogecoin, ranked 10th overall, experienced a decline of 5 percent overnight and is currently trading at $0.0694. DOGE is presently situated 91 percent below its apex price of $0.7376, attained on May 8, 2021.