- A crypto crash is underway today, with top altcoins leading the losses.
- Top altcoins like Zcash, edgeX, HYPE, and Sui tokens being in the red.
- The decline happened as the risk-off sentiment prevailed.
A crypto crash is happening today, with top altcoins like Humanity Protocol (H), edgeX (EDGE), Zcash (ZEC), Hyperliquid (HYPE), and Sui (SUI) falling by over 7% in the last 24 hours. The total market capitalization of all tokens fell by over 1.7% in the last 24 hours to over $2.63 trillion.
Crypto Crash Triggered by Risk-Off Sentiment
The crypto market crash is happening as investors embrace a risk-off sentiment after the recent consumer inflation report. Data showed that the headline consumer price index (CPI) rose to 3.8% from the year-to-date low of 2.6%.
The risk-off sentiment is also visible by the ongoing US dollar index (DXY), which has jumped to $100 for the first time in weeks. Similarly, US government bond yields continued rising, with the five-year rising to over 5%.
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At the same time, global US stocks plunged, with the Dow Jones, Nasdaq 100, and S&P 500 dropping by over 1%. The Dow Jones dropped by over 537 points, while the Nasdaq 100 fell by over 400 points in the same period. South Korea’s Kospi Index dropped by over 6% on Friday.
Selling the News After the CLARITY Act Markup
The crypto market crash is happening as investors sell the CLARITY Act passing news. It passed in the Senate Banking Committee in a bipartisan manner, implying that it will pass in the full Senate and be signed into law by President Donald Trump.
Most of the large players in the crypto industry welcomed the progress as it had stalled in the past few months amid the stablecoin yield issues.
Therefore, while the CLARITY Act is positive for the crypto industry, the crypto market is falling as investors sell the news.
Crypto Market Crashing Happening Amid Falling Demand
The cryptocurrency market is falling as demand from investors continues plunging. Data compiled by CoinMarketCap shows that the volume in the crypto market dropped by over 22% in the last 24 hours to $84 billion.
Similarly, the futures open interest has plunged by over 2% in the last 24 hours to $129 billion, a sign that investors are using less leverage in the market.
More data shows that top crypto ETFs have continued seeing outflows in the past few days. Data shows that spot Ethereum ETFs shed over $83 million in assets this month, bringing the cumulative total net inflows to $11.8 billion.
Similarly, spot Bitcoin ETFs shed over $1 billion in assets this week, bringing this month’s net inflow to $252 million. Other altcoin ETFs have also not had any inflows in the past few days.
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