The crypto market moved lower on Thursday as hotter-than-expected U.S. inflation data, heavy Bitcoin ETF outflows, and rising macroeconomic uncertainty pressured investor sentiment.
Summary
- The crypto market fell 1.6% as hotter-than-expected U.S. inflation data fueled fears of prolonged high interest rates.
- Bitcoin dropped below the key $80,000 level while Ethereum, Solana, XRP, and other major altcoins posted losses between 2% and 6%.
- Spot Bitcoin ETFs recorded roughly $635 million in net outflows as rising oil prices and geopolitical uncertainty further pressured risk sentiment.
The total crypto market capitalization dropped roughly 1.6% over the past 24 hours to around $2.58 trillion. Bitcoin (BTC) fell below the key $80,000 psychological level, sliding from this week’s high near $82,300 to an intraday low around $79,600 before recovering slightly near $79,800 at press time.
Ethereum (ETH) declined nearly 2% toward the $2,260 region, while major altcoins, including Solana (SOL), XRP (XRP), BNB (BNB), Toncoin (TON), and Hyperliquid (HYPE), posted losses ranging between 2% and 6%.
Per CoinGlass data, more than $410 million worth of crypto positions were liquidated over the past 24 hours, with long liquidations accounting for the majority of the wipeout.
The latest selloff accelerated after the U.S. Producer Price Index surged 6% year-over-year, significantly above market expectations.
The stronger inflation reading reinforced fears that the Federal Reserve could keep interest rates elevated for longer, reducing expectations for near-term rate cuts and triggering a broader risk-off move across speculative assets.
Higher interest rates tend to reduce liquidity in financial markets and increase the attractiveness of safer fixed-income yields relative to volatile assets like cryptocurrencies.
Bitcoin’s drop below the key $80,000 support level further weakened sentiment and triggered additional selling pressure across the broader altcoin market.
Investor sentiment also deteriorated after U.S. spot Bitcoin ETFs recorded roughly $635 million in net outflows in a single session, signaling that institutional demand has started cooling after several weeks of strong inflows.
The ETF outflows added to concerns that large investors may be reducing exposure amid growing macroeconomic uncertainty and fading short-term momentum.
Altcoins such as Ethereum and Solana also came under pressure as institutional flows across the broader crypto market weakened.
Meanwhile, WTI crude futures held above $101 per barrel on Thursday after the U.S. intensified pressure on Iran through fresh sanctions targeting entities involved in Iranian oil sales to China.
Although investors shifted focus toward the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping, geopolitical uncertainty surrounding the Iran conflict and global trade tensions continued to support elevated oil prices.
Rising oil prices often increase inflationary pressure across the global economy, which can further reduce appetite for speculative assets such as cryptocurrencies.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
