Crypto Slides as ETFs See Heavy Outflows
Cryptocurrencies experienced a decline as macro uncertainties and waning expectations for rate reductions impacted the market. Market leader Bitcoin saw a drop to $92,971 before bouncing back. In the past day, Ethereum saw a drop, reaching a low of $3,007. Overall market capitalization hit a 24-hour low of $3.17 trillion. Notable withdrawals from Bitcoin Spot ETF products in the U.S. reflected a careful approach by institutional investors, subsequently affecting market sentiment negatively. On Friday, Bitcoin Spot ETF products faced notable net outflows amounting to $492 million, largely influenced by the iShares Bitcoin Trust, which recorded its highest outflows to date at $463 million. Over the last week, Bitcoin Spot ETF products saw a total of $1.1 billion in net outflows. On Friday, Ethereum Spot ETF products saw net outflows of $178 million, bringing the total outflow to $728 million for the week.
Anticipation for a reduction in rates from the Federal Reserve has waned due to the unpredictability linked to the accumulation of economic data releases. Reports shows a 43.6 percent chance of a quarter percentage rate cut in December. The figure was at 44.4 percent just one day ago and was noted at 62.4 percent a week before. Fear and Greed Index, shows a continued decline in market sentiment. The index has fallen to 17 from 18 just a day earlier, indicating a rise in anxiety among both retail and institutional investors that has adversely affected sentiment. Data shows that in the last 24 hours, crypto liquidations reached $619.55 million, with $397.33 million in long positions and $222.23 million in short positions. Less than 25 of the leading 100 cryptocurrencies are showing increases beyond one percent in the year 2025. About 65 of the leading 100 cryptocurrencies are presently facing year-to-date losses exceeding 1 percent.
In light of the ongoing challenges faced by both institutions and retail investors, the total market capitalization of cryptocurrencies has decreased by 0.9 percent in the last 24 hours, currently at $3.25 trillion. In the last 24 hours, 66 of the top 100 cryptocurrencies have experienced a decline of over 1 percent, while only 2 are showing overnight gains exceeding 1 percent. The trading volume over the past 24 hours has increased by more than 56 percent, hitting $172 billion. Cryptocurrencies in the AI & Big Data sector encountered notable setbacks, with a drop surpassing 4 percent. Top ranked Bittensor, currently sitting at 33rd overall, experienced a decline of 4.4 percent. NEAR Protocol, which secured the second position in its category and 34th overall, experienced a significant overnight decline of 9.4 percent. The privacy category saw a decrease in market cap of almost 2.7 percent. Zcash, leading its category and sitting at 12th overall, experienced a decline of 4.9 percent in the last 24 hours. Monero, holding the second position in its category and 18th overall, experienced a decline of 7.7 percent in the last 24 hours. The losses in the Meme category of cryptocurrencies were limited to around 1.3 percent.
Price movements in the cryptocurrency market correspond with the dollar’s strength and gold’s decline. The Dollar Index, measuring the dollar’s strength against a group of six currencies, is presently trading above the neutral point. The current value is 99.36, in contrast to the last close of 99.30. Gold Futures for December settlement are currently priced at $4,081.35 per troy ounce, showing a decline of 0.31 percent overnight. Bitcoin has seen a drop of 0.66 percent overnight and a notable 9.8 percent over the past week, currently trading at $95,767.54, placing it around 24 percent below its all-time high of $126,198.07. Ethereum experienced a decline of over one percent overnight, now trading at $3,199.88, with a year-to-date decline of 3.9 percent. XRP, now in the 4th position, saw a decrease of 0.13 percent overnight, settling at $2.27. BNB experienced a drop of 1.5 percent overnight, settling at $933.71. Solana closed at $142.08 following a 0.62 percent drop. TRON decreased by 1.6 percent to $0.2933, Dogecoin also saw a decline of 1.6 percent to $0.1624, and Cardano experienced a drop of 2.5 percent to $0.4952. Uniswap gained 1.8 percent, and Ethena rallied 1.2 percent, the only two top-100 cryptocurrencies in the green. NEAR Protocol and Internet Computer stood out as the most significant decliners among the top 100, with both facing a drop of over 9 percent.
