Crypto Market Falls as Soft US CPI Reduces Fed Rate-Hike Bets
Market players reacted to the U.S. consumer price inflation data for July, which was in line with market expectations, and the cryptocurrency market capitalisation lost a little ground over the last day. Losses were reduced by positive inflows into Bitcoin Spot ETF products listed in the US. There has been a 2.5 percent drop in the total value of the cryptocurrency market in the last 24 hours, with Bitcoin down 0.6% during that time. At the moment, the price of the most popular cryptocurrency is close to 63,693. Headline annual inflation fell to 3.4% from 3.5% in June, according to data issued by the US Bureau of Labour Statistics on Wednesday morning. Additionally, its central component fell from 2.6% last month to 2.5% this month. Comparisons between June and July show that headline inflation was -0.4%, while July’s figure was 0.1%. After being unchanged in June, the core component saw an uptick to 0.2% in July. It is expected that Thursday morning’s producer price inflation figures, which was recorded at -0.3% in June, will show an uptick to 0.2%. As markets have digested the CPI numbers, however, anticipation of a rate move by the Federal Reserve has faded.
From 48% the day before, the likelihood of an interest rate hike during the September Federal Reserve review has dropped to 36%. Similarly, from 62% the day before, the probability of an interest rate hike in October has dropped to 52%. Prior to this, the market had put the odds of a December Fed rate hike at 79%. Since there have been no negative events related to inflation, the markets have revised their predictions down to 71%. Due to ongoing geopolitical unpredictability in the Middle East and fears of a protracted battle, both crude oil price indices have fallen by approximately 0.5 percent. As a result of falling bond yields and a weaker dollar, the six-currency Dollar Index fell about 0.12%. The Dow Jones is still being cautious, trading just below the neutral line, while the S&P 500 and Nasdaq Composite are showing increases. The amount of money being sold from long holdings continues to outpace the amount being sold from short positions. Including long positions of $128 million and short positions of $82 million, the 24-hour liquidation statistics show that crypto liquidations total $210 million. Overnight, the total market capitalisation of cryptocurrencies fell by 0.28%, reaching $2.19 trillion. Market leader Bitcoin’s price ranged from $64,381 to $63,185 over this time.
Total cryptocurrency market capitalisation fell while trading volumes rose by 6 percent. The most valuable cryptocurrency, Bitcoin, is down 0.64 percent at $63,692.95. On October 7, 2025, the price reached an all-time high of $126,198.07. The current price is over 50% lower than that. The original coin is now down 27.2% so far this year. In contrast to Monday’s net outflow of $145 million, Bitcoin Spot ETF products in the US saw net inflows of $8 million on Tuesday. A net of $50 million was received by the iShares Bitcoin Trust ETF. Industry data shows that Bitcoin’s market capitalisation ranks it at number fourteen among all assets worldwide. Between Tesla (ranked thirteenth) and Samsung (ranked fifteenth), the top cryptocurrency is located. With a price of $1,893.25, Ethereum is up 0.37 percent. At its current price, the top alternative coin is 62% lower than its all-time high, which was $4,953.73 on August 25, 2025. Between $1,921.78 and $1,852.84 were the highs and lows of the 24-hour trading. Ethereum’s losses for the year are now at 36.2%. Net withdrawals from U.S.-based Ethereum Spot ETF products fell to $2 million on Tuesday from $15 million the previous day. Ethereum is now the 91st most valuable asset in the world.
Overnight, the price of the fourth-ranked BNB rose to $612.68, thanks to a 0.35 percent advance. At the moment, BNB is trading at a price that is 55% lower than its all-time high of $1,370.55, which was hit on October 13, 2025. Cryptocurrency XRP, which focuses on payments and ranks 6th overall, gained 0.34 percent overnight and is now trading at $1.01, over 74% behind its all-time high of $3.84 reached on January 4, 2018. Solana, the seventh-ranked drug, saw a 0.06 percent drop in price overnight, ending the day at $75.90. Compared to its all-time high of $294.33 on January 19, 2025, SOL is trading at a discount of almost 74% now. At the now, TRON is trading at $0.3358, which represents a small gain of 0.07% and puts it in the eighth position overall. The cryptocurrency’s all-time high was $0.4407 on December 4, 2024, and the current trading price is 24% below that. Hyperliquid, which ranks 9th, surged 2.2% overnight, trading at $55.64, or around 28% behind its June 16 all-time high of $76.85. Dogecoin, the tenth most valuable cryptocurrency, fell 0.96 percent overnight and is now trading at $0.0705. At its current price, DOGE is trading 90% below its all-time high of $0.7376, which it hit on May 8, 2021.
