Tech
Tech sell-offs, strong US GDP hurt crypto sentiment
Cryptocurrencies have fallen sharply over the past 24 hours following a massive tech sell-off triggered by negative earnings updates from tech majors Alphabet and Tesla. A stronger-than-expected U.S. GDP update and net outflows from spot Ethereum ETF products in the U.S. on Wednesday exacerbated the negative sentiment.
Data released by the U.S. Bureau of Economic Analysis showed growth of 2.8 percent in the second quarter. Markets had expected second-quarter growth to rise to 2 percent from 1.4 percent in the previous period.
The CME FedWatch tool that tracks interest traders’ expectations still shows a rate cut expectation for the September review at 100 percent. However, markets overwhelmingly expect a pause at the next FOMC meeting scheduled for July 31.
Data from Farside Investors showed net outflows of $133 million from spot Ethereum ETFs in the U.S. on Wednesday compared to net inflows of $107 million on Tuesday, the day of launch. Outflows of $327 million from Grayscale Ethereum Trust (ETHE), which converted to a spot ETF, outpaced inflows of $193.6 million from seven new ETFs. Fidelity Ethereum Fund (FETH) topped the list with net inflows of $74.5 million, followed by Grayscale Ethereum Mini Trust (ETH) which saw inflows of $45.9 million.
Amid the developments, the overall cryptocurrency market cap fell 4.6 percent overnight to $2.3 trillion from $2.43 trillion the day before. The political memes category fell 8.76 percent while the broader memes category lost 8.4 percent in the past 24 hours. Cryptocurrencies in the AI and Big Data category also saw their market caps fall 7.7 percent overnight. None of the top 100 cryptocurrencies saw overnight gains of more than one percent.
Bitcoin has plunged to a low of $63,833 in the past 24 hours. It is currently trading at $64,089.90, posting overnight losses of 4 percent and weekly losses of nearly 1 percent, paring its year-to-date gains to 51 percent. At its current price, the leading cryptocurrency is trading 13 percent below its all-time high set in March 2024.
Ethereum has plunged 8.7 percent over the past 24 hours to trade at $3,159.89, about 35 percent below its all-time high. Amid weekly losses of nearly 9 percent, the leading altcoin’s yearly gains have narrowed to less than 39 percent. The broad-based market sell-off had dragged the altcoin to a low of $3,133.99 earlier in the day.
Bitcoin increased its dominance to 55 percent of the overall cryptocurrency market, while Ethereum’s share fell to 16.5 percent of the market. Amid rising risk aversion, the market cap of not-so-volatile stablecoins increased to $172 billion or 7.5 percent of the overall cryptocurrency market.
BNB (BNB), ranked fourth, fell 4.2 percent overnight and 2.4 percent on the week, settling at $561.57.
Solana (SOL), ranked fifth, is down 5.7 percent overnight to trade at $168.41. SOL has gained 5 percent over the past week and is the highest-ranked cryptocurrency to trade with weekly gains.
XRP (XRP), ranked 6th, has slipped 3.7 percent overnight to trade at $0.6083. Despite gains of 5 percent over the past week and 27.8 percent over the past 30 days, its year-to-date losses still exceed one percent. XRP is the highest-ranked cryptocurrency to trade in the red on a year-to-date basis.
Dogecoin (DOGE), ranked eighth overall, has also fallen 7.6 percent over the past 24 hours to trade at $0.1241. However, DOGE has gained 1.7 percent over the past week.
Toncoin (TON), ranked ninth, is down 6.1 percent overnight to trade at $6.54. TON is outpacing the year-to-date gains among the top 20 cryptocurrencies with a 183 percent increase.
Cardano (ADA), ranked 10th, is down 6.3 percent overnight and 10 percent over the past week. ADA is currently trading at $0.3929, after sliding more than 33 percent in the year 2024.
TRON (TRX), ranked 11th, is the top cryptocurrency for overnight trading gains. TRX added 0.55 percent overnight and 0.9 percent over the past week.
Popcat (POPCAT), ranked 88th, overcame overnight losses with a decline of over 14 percent. Fantom (FTM), ranked 63rd, and Ethena (ENA), ranked 85th, followed with losses of over 13 percent. Celestia (TIA), ranked 66th, Ronin (RON), ranked 94th, Pepe (PEPE), ranked 22nd, and Conflux (CFX), ranked 98th, have all lost over 12 percent in the past 24 hours.
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Of Avila SebastianRTTNews Staff Writer
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