Bitcoin Slips as AI Stock Selloff Triggers $157 Million in Crypto Liquidations
A global selloff in AI stocks lowered bitcoin market sentiment. South Korea’s KOSPI index fell 3.7 percent, while Japan’s Nikkei 225 fell over one percent. The tech-heavy Nasdaq Composite is below the flatline. Due to negative mood, the crypto market capitalisation has dropped over half a percent, while Bitcoin has varied between $82,446 and $81,107. CME FedWatch, which tracks interest rate traders’ views, predicts a 14.9% chance of another quarter-percent rate hike in October, down from 18.8% a day earlier and 22.1 percent a week earlier. The next FOMC meeting is in 8 days. The possibility of a half percentage rate increase from 3.75-4.0 percent at the December FOMC has dropped to 12.9 percent from 16.2 percent the day before and 18.7 percent a week earlier.
Similarly, the chance of a quarter percentage rate hike has increased to 75.3 percent from 72.5 percent the day before and 69.3 percent the week before. The year-end FOMC meeting is December 9. The selloff in technology and artificial intelligence firms spurred unfavourable sentiment about cryptocurrencies, notwithstanding lower Federal Reserve rate hike predictions. The six-currency Dollar Index fell to 101.73 from 101.98 the day before, lowering bitcoin market sentiment. The CMC Crypto Fear and Greed Index, which tracks cryptocurrency market sentiment, dropped to 48 from 49 the day before and 55 a week ago. The 24-hour liquidations total $157 million. Long positions were liquidated for $109 million and short positions for $48 million. Cryptocurrency market capitalisation fell 0.59 percent to $2.73 trillion. Trading volumes fell 7% during the upswing. Bitcoin, the largest cryptocurrency, fell 0.57 percent overnight to $81,664.66. Bitcoin is down 8% year-to-date despite a 1.4 percent spike in the last 30 days.
Bitcoin Spot ETF products in the U.S. saw net inflows of $527 million on Monday, up from $82 million on Friday. The leading iShares Bitcoin Trust ETF saw $665 million inflows. Data ranks Bitcoin 12th in global asset market capitalisation. The leading cryptocurrency is between 11th-ranked Saudi Aramco and 13th-ranked Broadcom. Ethereum fell 0.40 percent overnight to $2,396.53. The leading alternative coin fell 4.5 percent last week. Net outflows for U.S. Ethereum Spot ETFs rose to $103 million on Monday from $70 million on Friday. Ethereum Trust iShares ETF outflows peaked at $95 million. According to research, Ethereum ranks 61st in global asset capitalisation. The 4th-ranked BNB rose 0.42 percent overnight to $729.98. 5th-ranked XRP, a payments-focused cryptocurrency, fell 0.42 percent overnight to $1.29.
Solana, rated 7th, fell 0.39 percent overnight to $104.35. Net outflows for U.S.-listed Solana Spot ETFs fell to $7 million on Monday from $13 million on Friday. Bitwise Solana Staking ETF lost $5 million. TRON is 8th overall, down 0.41 percent to $0.3304. 9th-ranked Hyperliquid fell 0.63 percent overnight to $78.90. Hyperliquid Spot ETFs listed in the U.S. had no inflows on Monday or Friday. Zcash, 10th in rank, rose 1.5 percent overnight to $1,154.79. U.S.-listed Zcash Spot ETF products had $10 million in net outflows on Monday, up from $1 million on Friday.
