The surge in equity markets, driven by robust corporate earnings, the decline in crude oil prices, and revived hopes regarding a Hormuz deal, also found its reflection in cryptocurrency markets, though to a lesser extent. The aggregate market capitalisation of cryptocurrencies has experienced an increase of approximately 0.4 percent over the last 24 hours. In contrast, the tech-heavy Nasdaq Composite experienced a notable increase of 2.6 percent on Tuesday. In Wednesday’s trading, South Korea’s KOSPI has experienced a notable increase of 3.8 percent, while Japan’s Nikkei 225 has recorded a significant rise of 3.6 percent. Wall Street futures are presently exhibiting an increase of approximately half a percent. While a short squeeze in crypto liquidations, an increase in ETF inflows, and a mild dip in rate hike expectations bolstered crypto market sentiment, the regulatory narrative and safety concerns tempered the enthusiasm. The 24-hour liquidation statistics indicate that short position liquidations have exceeded long position liquidations. In the last 24 hours, crypto liquidations reached a total of $206 million, which includes $70 million in long positions and $136 million in short positions. This figure represents the forced closure of leveraged positions by exchanges or lending protocols due to insufficient funds to cover potential losses.
Bitcoin Spot ETF products in the U.S. experienced a notable increase in net inflows, climbing to $212 million on Tuesday, up from $170 million the previous day. iShares Bitcoin Trust ETF experienced net inflows amounting to $170 million. Ethereum Spot ETF products in the U.S. experienced net inflows of $53 million on Tuesday, contrasting with net outflows of $12 million on Monday. iShares Ethereum Trust ETF topped with net inflows of $43 million. Meanwhile, data from the CME FedWatch tool, which monitors the expectations of interest rate traders, indicates that the probability of a rate hike in September has decreased to 56.7 percent. It stood at 58.4 percent the previous day. The dip has alleviated markets’ concerns regarding a forthcoming increase in interest rates by the Federal Reserve. Uncertainty regarding the outcome of the Digital Asset Market Clarity Act persisted, exerting pressure on sentiment within the cryptocurrency market. The bill has encountered delays due to ongoing discussions regarding ethical considerations surrounding the digital asset transactions involving government officials. In light of the recent Bitcoin Coldcard exploit involving approximately 15 attackers and potential losses exceeding $100 million, market sentiment has been notably affected. The potential selling pressure from the stolen Bitcoins that have been transferred to exchanges has also diminished sentiment.
The CMC Crypto Fear and Greed Index, which monitors sentiment in the cryptocurrency market, indicates a reading of 38, up from 37 the previous day. Amidst the developments, Bitcoin has slipped one notch to the 14th position in the global ranking of all assets according to market capitalisation. The leading cryptocurrency is currently situated between Tesla, which holds the 13th rank, and Samsung, positioned at 15th rank. Overall crypto market capitalisation has risen by 0.8 percent overnight, reaching $2.19 trillion, while the market leader Bitcoin fluctuated between $64,467 and $63,558 during this timeframe. The increase in overall crypto market capitalisation was accompanied by a 1-percent dip in trading volumes. Bitcoin, the largest cryptocurrency, is trading 0.51 percent higher at $64,035.82. The current price is approximately 49 percent lower than the all-time high of $126,198.07, which was reached on October 7, 2025. The original cryptocurrency’s year-to-date losses are approximately 27 percent. Ethereum is trading 0.13 percent higher at $1,868.62. The leading alternate coin is currently trading 62 percent below its all-time high of $4,953.73, which was recorded on August 25, 2025. The 24-hour trading fluctuated between $1,879.54 and $1,857.57. Ethereum has experienced a decline of 37 percent year-to-date. Ethereum has fallen three places to the 92nd position in the global ranking of all assets based on market capitalisation, according to source. 4th ranked BNB rallied 1.3 percent overnight, resulting in a price increase to $597.35.
BNB is currently positioned 56 percent beneath its all-time high of $1,370.55, which was reached on October 13, 2025. 6th ranked XRP, a payments-focused cryptocurrency, however slipped 1.1 percent overnight and is currently trading at $1.06, around 72 percent below the all-time high of $3.84 touched on January 4, 2018. The price of 7th ranked Solana increased by 0.54 percent overnight, reaching $73.91. SOL’s current price stands approximately 75 percent lower than its peak of $294.33, which was achieved on January 19, 2025. TRON, ranked 8th overall, experienced a slight decline of 0.02 percent overnight and is currently trading at $0.3287. The trading price stands at 25 percent below the cryptocurrency’s all-time high of $0.4407, which was recorded on December 4, 2024. Hyperliquid rallied 3.6 percent overnight, trading at $57.26, which is approximately 28 percent below its all-time high of $76.85 recorded on June 16. Memecoin Dogecoin ranked 10th overall slipped 0.82 percent overnight and is currently trading at $0.0698. DOGE is currently positioned 91 percent beneath its peak price of $0.7376, which was achieved on May 8, 2021.