The cryptocurrency market experienced a sharp decline over the past 24 hours, with the #CoinDesk 20 Index dropping by 5% to 3,833 points.
Market leaders bitcoin (BTC) and ether (ETH) fell nearly 2%, accompanied by larger losses in major altcoins such as XRP, BNB, and SOL. ASTR, the native token of Aster DEX, which recently flipped Hyperliquid in 24-hour volume, fell 4% as the decentralized exchange saw abnormal price movements in the XPL perpetual trading pair.
However, a few coins, including MNT, CRO, KAS, OKB, and XMR, managed modest gains of around 1%.
This market downturn coincides with a stronger dollar index, pushed higher by Thursday’s #US GDP and jobless claims data. Meanwhile, market flow dynamics turned bearish.
“#etf behavior changed from a primary absorber of supply to a net seller this week. Yesterday, Bitcoin ETFs posted $258 million of outflows while Ethereum ETFs recorded $251 million of outflows, marking four straight days of red for ETH funds,” analysts at BRN told CoinDesk.
At the same time, whales have become net sellers, offloading 147,000 BTC since August 21 — the fastest drop since the bull cycle that began in early 2023, according to #CryptoQuant .
Analysts at Bitunix exchange warned that recent tariff announcements have increased market uncertainty, with sentiment oscillating between “rising inflation” and “slowing growth.” On Thursday, President Donald Trump announced steep tariffs of 25% to 100% on trucks, furniture, and pharmaceuticals, effective October 1, which could further pressure inflation.
The #Fed ’s preferred inflation gauge, the core personal consumption expenditure for August, expected Friday, is projected to show a 2.9% year-over-year rise, matching July’s pace. Month-on-month, it’s forecast to have increased 0.2%, slightly below July’s 0.3%, according to FactSet. A softer-than-expected print could temper the dollar’s rally, putting a floor under bitcoin and the wider crypto market.
Traders should remain vigilant about regulatory developments related to digital asset treasuries, or DATs, as a WSJ report late Thursday cited concerns from U.S. regulators about unusual trading volumes and stock price volatility in over 200 companies linked to crypto treasury strategies.
A regulatory pressure on these digital asset treasuries, or DATs, could accelerate market sell-offs.
Additionally, geopolitical developments warrant attention, as reports are circulating about Russia's aerial incursions in Europe. WTI crude oil is already up 4% for the week, the best performance since June. Stay alert!
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