The sentiment in the cryptocurrency market, which recently appeared to be closely tied to the shifts in the global AI trade, has once again returned to experimenting with monetary policy, interest rates, and the battle against inflation. An ongoing surge in crude oil prices, driven by interruptions in oil transport through key waterways, is leading cryptocurrencies to move away from the price patterns of semiconductor and memory companies. The notable rise in crude oil prices has sparked fresh worries about inflation expectations and the likelihood of higher interest rates. With crude oil prices hitting a six-week high, Bitcoin has retreated from the five-week peak of $66,910 observed the day before and is currently trading near $66,000. While there was previously a positive outlook regarding the progress of the CLARITY Act and expected beneficial regulatory changes in the United States, the total market capitalisation of cryptocurrencies has seen a decrease of half a percent in the last 24 hours. Strong inflows into Bitcoin Spot ETF products listed in the U.S. on Tuesday did not improve market sentiment.
Nevertheless, crypto markets continue to anticipate advancements regarding the CLARITY Act, which has faced delays due to disagreements over an ethics clause. Markets also took in reports of Satsuma Technologies’ shareholders approving the liquidation of their bitcoin treasury and the removal from London. A recent working paper authored by members of the Monetary and Economic Department of the Bank for International Settlements has attracted considerable interest from the market. According to the document, the rise of stablecoins has created a new pathway for obtaining U.S. dollar liquidity in emerging market and developing economies, raising concerns about the potential effects on monetary control. The working paper titled “Dollarisation and monetary control: what lessons for the rise of stablecoins?” emphasises that stablecoin flows seem to be largely unaffected by both general and targeted capital flow restrictions. According to the authors, FX-related restrictions, including prudential regulation and capital controls, appear to have a negligible impact on stablecoin dollarisation. They also note that specific restrictions on stablecoin use between residents and non-residents seem to have no statistically significant effect on overall stablecoin inflows.
The research findings are significant as the use of stablecoins grows in both advanced and emerging markets. Currently, stablecoins make up $312 billion, which is 13.9 percent of the overall cryptocurrency market capitalisation. Among the top 10 cryptocurrencies, two are categorised as stablecoins. Tether, the leading stablecoin, currently holds a market dominance of 8.2 percent and is positioned third among all cryptocurrencies. In light of market sentiment shaped by geopolitical events and corporate earnings, the overall cryptocurrency market capitalisation has seen a decline of 0.69 percent in the past 24 hours, currently at $2.24 trillion. About 20 of the top 100 cryptocurrencies are seeing overnight increases of more than one percent, while more than 35 are encountering overnight declines of one percent or more. The decline in overall cryptocurrency market capitalisation was also matched by a 2-percent drop in trading volumes. Bitcoin, the largest cryptocurrency, is currently valued at $66,008.36, reflecting a decrease of 0.18 percent. The current price is about 48 percent lower than the all-time high of $126,198.07, recorded on October 7, 2025. The original cryptocurrency has experienced year-to-date losses of 24.6 percent.
Bitcoin Spot ETF products in the U.S. saw net inflows of $203 million on Tuesday, down from the $227 million noted on Monday. iShares Bitcoin Trust ETF saw net inflows totalling $164 million. Bitcoin continues to hold the 14th spot in the global ranking of all assets based on market capitalisation data. The top cryptocurrency is ranked between Tesla at 13th and Samsung at 15th. Ethereum is currently down 0.11 percent, priced at $1,928.13. The leading alternate coin is currently trading at a level that is 61 percent lower than its all-time high of $4,953.73, which was reached on August 25, 2025. The 24-hour trading varied between $1,943.74 and $1,909.61. Ethereum is still facing year-to-date losses that surpass 35 percent. Ethereum Spot ETF products in the U.S. saw steady net inflows of $38 million on Tuesday and Monday, in contrast to net inflows of $37 million on Friday. iShares Ethereum Trust ETF saw net inflows of $53 million. Ethereum has dropped three spots to the 85th position in the global asset ranking based on market capitalisation, as reported. The fourth-ranked BNB saw a decrease of 1.1 percent overnight, resulting in a price of $570.54.
BNB is currently situated 58 percent below its all-time high of $1,370.55, achieved on October 13, 2025. 6th ranked XRP, a payments-focused cryptocurrency, rallied 0.61 percent overnight and is currently trading at $1.13, around 70 percent below the all-time high of $3.84 reached on January 4, 2018. The price of the 7th ranked cryptocurrency decreased by 0.65 percent overnight to $77.63. SOL’s current price is about 74 percent below its highest point of $294.33, achieved on January 19, 2025. TRON, ranked 8th overall, experienced a 0.93 percent increase overnight and is presently trading at $0.3300. The trading price is currently 25 percent lower than the cryptocurrency’s peak of $0.4407, reached on December 4, 2024. 9th ranked Hyperliquid dropped 5.5 percent overnight, trading at $59.10, which is approximately 23 percent lower than the all-time high of $76.85 reached on June 16. Memecoin Dogecoin, ranked 10th overall, saw a decrease of 1.1 percent overnight and is now trading at $0.0727. DOGE is currently situated 90 percent below its highest price of $0.7376, reached on May 8, 2021.