Crypto Market Falls Before FOMC Amid Chip Stock Selloff
Worries about Wednesday’s FOMC decision have been heightened by a huge selloff in the semiconductor industry, which has dampened investor faith in Bitcoin. A further factor influencing sentiment was the diminishing expectation that the Clarity Act would be approved before to the August Senate vacation recess. With Bitcoin’s price ranging from $65,648 to $63,016 in the last day, the overall market capitalisation of cryptocurrencies fell by more than 3%. The cryptocurrency markets’ mood mirrored the anxiety around Wednesday’s interest rate announcement by the Federal Reserve. Market participants anticipate that the Federal Reserve would raise interest rates in order to address the persistent inflationary pressures impacting the economy, since inflation has remained over the Reserve’s 2-percent objective. The CME FedWatch program, which monitors interest rate traders’ expectations, indicates that there is a 32% chance of a quarter percent increase on Wednesday. Markets have pegged the chances of a 0.25% rate hike and a 0.50% rate hike for the next FOMC meeting in September at 57% and 22%, respectively.
As markets await earnings reports from big IT companies, a further decline in chip stocks has also affected crypto market sentiment. Notable falls were witnessed by Asian markets as the trading day came to a close, with South Korea’s KOSPI benchmark seeing a drop of more than 10%. On Wall Street, the tech-heavy Nasdaq Composite is presently seeing losses of almost 1%. The total market value of all cryptocurrencies has dropped 3.6% in the last day, reaching $2.16 trillion. Out of the top 100 cryptocurrencies, only one is seeing a rise of more than 1% overnight, while over 80% are seeing losses of 1% or more. Despite the general fall in crypto market value, trading volumes spiked by fifteen percent. The digital assets were able to reduce their losses due to a combination of factors, including the slight retreat of the US dollar and the fall in crude oil prices. The biggest cryptocurrency, Bitcoin, is down 4.1% at $62,883.40 right now. At its present level, it is around 50% lower than its all-time high of $126,198.07, reached on October 7, 2025. There has been a 28.1% drop in value for the original coin so far this year.
The net outflow of $12 million from Bitcoin Spot ETF products in the US on Monday was significantly lower than the net outflow of $240 million observed on Friday. A total of $9 million was removed from the iShares Bitcoin Trust ETF. Based on market capitalisation data, Bitcoin is still ranked thirteenth among all assets globally. Between SpaceX (at number twelve) and Tesla (at number fourteen), the market leader in cryptocurrencies is located. At its current price of $1,865.71, Ethereum has lost 5.4% of its value. At its current price, the leading alternative coin is 62% behind its all-time high of $4,953.73, which was reached on August 25, 2025. Variations between $1,974.68 and $1,865.64 were seen in the 24-hour trade. To this day, Ethereum is still reeling from losses that exceed 37% for the year. After seeing a net outflow of $71 million on Friday, Ethereum Spot ETF products in the US witnessed a net inflow of $12 million on Monday. All of the flows were represented by the iShares Ethereum Trust ETF. According to market capitalisation, Ethereum is now the 86th most valuable asset in the world.
The price of the fourth-ranked BNB dropped to $564.00 after a 2% drop overnight. BNB is now trading at a level 59% below its all-time high of $1,370.55, which it reached on October 13, 2025. No. 6 XRP, a cryptocurrency focused on payments, fell 5.8 percent overnight and is now selling at $1.04, around 73% below its all-time high of $3.84, which it hit on January 4, 2018. With an overnight drop of 6.2%, Solana’s price settled at $72.44, putting it in seventh place. At its all-time high of $294.33 on January 19, 2025, SOL is trading at a discount of around 75% from its previous high. Positioned eighth overall, TRON saw a 1.8% drop overnight and is now worth $0.3244. At its current trading price, the cryptocurrency is 26% below its all-time high, which was $0.4407 on December 4, 2024. Nearly 30% lower than its all-time high of $76.85 hit on June 16, Hyperliquid, which is rated 9th, fell 9.6% overnight, trading at $54.05. The tenth-ranked cryptocurrency, Memecoin Dogecoin, fell 5% overnight and is now trading at $0.0694. DOGE is now trading at a 91% discount to its all-time high of $0.7376, which it reached on May 8, 2021.
