- Ethereum led cryptocurrency declines, falling up to 3.2% over 24 hours.
- Major cryptocurrencies, including Bitcoin and Binance Coin, also posted losses as the U.S. dollar strengthened.
- The U.S. Dollar Index (DXY) reached its highest level since August, affecting demand for digital assets.
- Nears $530 million in crypto liquidations were recorded, mostly from long positions, with Ethereum experiencing the largest share.
- Only Solana and tron ended in positive territory among the major tokens.
Top cryptocurrencies declined in early Thursday trading as the strengthening U.S. dollar reduced appetite for digital assets. Ethereum fell as much as 3.2%, leading losses among the ten largest cryptocurrencies by market value.
The U.S. Dollar Index (DXY) climbed to 99.1, its highest mark since August 11, ahead of a scheduled speech by Federal Reserve Chair Jerome Powell. As the dollar rose, demand weakened for assets priced in dollars such as Bitcoin and Gold.
Bitcoin dropped by 0.6% in the past 24 hours, trading near $122,200. The asset had recently benefited from $426 million in inflows to U.S.-listed spot exchange-traded funds (ETFs). Retail sentiment for Bitcoin shifted lower after the decline, with traders suggesting that prices above $120,000 could support future gains.
Ethereum declined further than other major cryptocurrencies, falling to about $4,300. Market sentiment for Ethereum stayed neutral, with average discussion levels reported. Binance Coin also lost ground, trading at $1,279—about 4.2% down from its recent all-time high. Despite this, Binance Coin remained the third-largest token by market value, having recently overtaken XRP.
XRP slipped by 2.3% to $2.80, as negative sentiment increased and trading discussion decreased. Cardano and Dogecoin fell 1.9% and 1.7% respectively. Meanwhile, Solana edged up by 0.2% and Tron gained 0.1%, the only major coins to finish in positive territory.
On the equities front, companies with major cryptocurrency holdings or interests also recorded losses. Shares of MicroStrategy dropped by 1.1% in pre-market trading. Bitmine Immersion Technologies fell up to 2.3%, while crypto mining firms Marathon Digital and Riot Platforms were down by as much as 0.5%. Coinbase, a major digital asset exchange, slipped 1.1%.
According to Coinglass data, the overall decline triggered almost $530 million in liquidations over the previous 24 hours. About $360 million of those liquidations were from long positions, which are bets that asset prices would rise. Ethereum saw the largest liquidations at $165 million, followed by Bitcoin at $124 million.
Minutes from the Federal Open Market Committee’s September meeting showed agreement on the need for more interest rate cuts, yet members differed on how much and when. Officials also cited persistent inflation and data delays due to the ongoing U.S. government shutdown as major concerns.
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