The cryptocurrency market has experienced a significant downturn, with Bitcoin falling below $83 thousand as a result of a substantial liquidation cascade. The past 24 hours saw long positions being forcibly liquidated in response to a rise in bond yields, a rebound in the dollar, and an increase in expectations for Fed rate hikes. Crypto markets also processed reports of BitMine Immersion Technologies announcing a cap on Ethereum purchases. The total liquidations over the past 24 hours amounted to $696 million. Liquidation of long positions reached $644 million, whereas the liquidation of short positions was merely $52 million. Lingering anxiety ahead of the release of minutes from the recent FOMC has exerted pressure on crypto market sentiment. Crypto markets responded to the increase in bond yields across various regions and maturities, reflecting renewed concerns regarding escalating debt levels and a troubling fiscal outlook. Ten-year U.S. treasuries are currently yielding 5.328 percent, reflecting a notable increase of 1.14 percent from the prior close. Yields on long-dated 30-year U.S. treasuries increased by 1.3 percent, reaching 5.715 percent. Ten-year bond yields have risen approximately 1 percent across the U.S., Canada, France, U.K., Spain, Italy, and Japan.
The U.S. Dollar experienced a notable increase, resulting in a rise of over half a percent in the Dollar Index overnight. The six-currency Dollar Index, which assesses the strength of the U.S. dollar against a basket of six currencies, is presently at 102.41, reflecting a rise of 0.57 percent from the previous close of 101.83. The dollar’s rebound has led to a decline in the dollar-denominated prices of cryptocurrencies. Meanwhile, expectations of a quarter percentage rate hike by the Federal Reserve in October have increased to 21.6 percent, up from 19.9 percent the previous day. Overall cryptocurrency market capitalisation has experienced a decline of 3.5 percent overnight, now standing at $2.83 trillion. The decline in market capitalisation is accompanied by a 34-percent increase in trading volumes. Bitcoin, the largest cryptocurrency, is currently trading 3.6 percent lower on an overnight basis at $83,080.63, approximately 34 percent below the all-time high of $126,198. The leading cryptocurrency has experienced a decline of 1.7 percent over the past week. Year-to-date losses have risen to 5.1 percent. The 24-hour trading fluctuated between $86,664.54 and $82,771.79.
On Tuesday, Bitcoin Spot ETF products in the U.S. experienced net inflows amounting to $119 million, a significant reversal from the net outflows of $90 million recorded on Monday. iShares Bitcoin Trust ETF topped with net inflows of $122 million. Bitcoin remains in the 12th position in the global ranking of all assets according to market capitalisation data. The leading cryptocurrency finds itself situated between Broadcom, ranked 11th, and Saudi Aramco, ranked 13th. Ethereum is currently trading 5.4 percent lower at $2,563.86, which positions it approximately 48 percent below its all-time high of $4,953. The leading alternate coin has experienced a decline of 5.3 percent over the past week and a more significant drop of 13.6 percent on a year-to-date basis. The 24-hour trading fluctuated between $2,723.74 and $2,552.93. Ethereum Spot ETF products in the U.S. experienced a rise in net outflows, escalating to $202 million on Tuesday, up from $51 million on Monday. The net outflows are attributed entirely to iShares Ethereum Trust ETF. Ethereum has fallen 4 places to the 61st position in the global ranking of all assets based on market capitalisation, as reported. The fourth-ranked BNB experienced a decline of 2.3 percent overnight, leading to a price adjustment to $766.77. 5th ranked XRP, a payments-focused cryptocurrency, tumbled 5.4 percent overnight and is currently trading at $1.43.
The price of 7th ranked Solana decreased 3.96 percent overnight to $116.09, approximately 61 percent below the all-time high of $294.33. U.S.-listed Solana Spot ETF products experienced a reduction in net outflows, declining to $4 million on Tuesday from $9 million on Monday. The outflows are exclusively associated with Greyscale Solana Staking ETF. TRON, positioned 8th in the overall rankings, is presently trading at $0.3341, reflecting a decline of 0.4 percent. 9th ranked Zcash experienced a decline of 3.8 percent overnight, with the cryptocurrency currently trading at $1,325.70, which is approximately 78 percent below its all-time high of $5,941.80. U.S.-listed Zcash Spot ETF products experienced no inflows on Tuesday, in contrast to net outflows of $4 million on Monday and $27 million on Friday. 10th ranked Hyperliquid experienced a decline of 4.2 percent overnight, settling at $88.88, which positions it approximately 9 percent below its all-time high of $97.98. U.S.-listed Hyperliquid Spot ETF products experienced net inflows of $3 million on Tuesday, contrasting with net outflows of $3 million on Monday.
