Cryptocurrencies are trading on a broadly negative note on Wednesday morning as markets react to the hotter-than-expected levels of producer price inflation in the U.S. The latest data, close on the heels of the higher-than-expected levels of consumer price inflation in the U.S. spooked market sentiment. Overall cryptocurrency market capitalization has decreased more than a percent in the past 24 hours.
Data released by the U.S. Bureau of Labor Statistics on Wednesday morning showed headline annual producer price inflation rising to 6 percent in April from an upwardly revised 4.3 percent in March. Markets had expected it to rise to 4.9 percent only. The core component thereof recorded 5.2 percent versus 4.3 percent that markets had anticipated. On a month-on-month basis, headline producer price inflation registered 1.4 percent, sharply higher than 0.5 percent that markets had factored in. The core component also heavily surpassed 0.3 percent that markets had considered to jump to 1 percent.
Consumer price inflation data released a day earlier from the U.S. had also showed higher than expected levels of annual inflation - both headline and core readings. Though month-on-month readings matched expectations, the core component thereof rose above expectations.
The spike in inflation, both at the factory gate as well as at the consumer's end to levels that the market had not anticipated has sharply impacted rate cut expectations from the Federal Reserve. According to the CME FedWatch tool that tracks the expectations of interest rate traders, the likelihood of the Fed rate falling below the current level of 3.50-3.75 percent by the end of 2026 is 2.3 percent only. The probability has fallen from 13.1 percent a week ago and 30.8 percent a month ago.
Cryptocurrencies being typically non-interest bearing, a potential rise in interest rates increases the opportunity cost of holding it. The increased likelihood of interest rates staying high for longer than expected has impacted crypto market sentiment. CoinMarketCap's Fear and Greed Index, an indicator of crypto market sentiment has slipped further in the "neutral" territory, to 47 from 49 a day earlier and 50 a week ago.
The high component of long positions in the liquidation statistics also reinforces the weak market sentiment. According to data from Coinglass, crypto liquidations - forced closure of a trader's leveraged position by an exchange or lending protocol for insufficient funds (margin or collateral) to cover potential losses - in the past 24 hours stood at $338 million, comprising long positions of $270 million and short positions of $68 million.
Overall crypto market capitalization has slipped more than 1 percent in the past 24 hours to $2.65 trillion. The 24-hour trading volume has however increased 2.8 percent to $90 billion. Around 15 of the top 100 cryptocurrencies are trading with overnight gains of more than a percent whereas more than 50 are trading with overnight losses of more than a percent.
Bitcoin (BTC), the largest cryptocurrency is trading 1.2 percent lower at $79,680.95. The current price is around 37 percent below the all-time high of $126,198.07 recorded on October 7, 2025. The original cryptocurrency has lost 2.1 percent in the past week and 8.95 percent on a year-to-date basis.
Bitcoin Spot ETF products in the U.S. witnessed net outflows of $233 million on Tuesday versus net inflows of $27 million on Monday. Fidelity Wise Origin Bitcoin Fund (FBTC) topped with net outflows of $86 million. ARK 21Shares Bitcoin ETF (ARKB) followed with net outflows of $85 million.
Bitcoin continues to be ranked 12th in the global ranking of all assets as per market capitalization published by companiesmarketcap.com, positioned between Tesla, Inc. (TSLA) ranked 11th and Meta Platforms (META) ranked 13th in the list.
Ethereum (ETH) declined 0.57 percent overnight as it traded at $2,263.82. The leading alternate coin is trading 54 percent below the all-time-high of $4,953.73 recorded on August 25, 2025.
Ethereum Spot ETF products in the U.S. witnessed net outflows rising to $131 million on Tuesday from $17 million on Monday. iShares Ethereum Trust ETF (ETHA) topped with outflows of $102 million.
Ethereum has slipped 4 notches to the 64th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
4th ranked BNB (BNB) added 1.9 percent overnight resulting in price increasing to $669.25. BNB is trading 51 percent below the all-time high of $1,370.55 touched on October 13, 2025.
5th ranked XRP (XRP) dropped 0.76 percent overnight and is currently trading at $1.42, around 63 percent below the all-time high of $3.84 touched on January 4, 2018.
The price of 7th ranked Solana (SOL) dropped 3.1 percent overnight to $91.95. SOL's current price is around 69 percent below its all-time-high of $294.33 recorded on January 19, 2025.
TRON (TRX) ranked 8th overall rallied 0.46 percent overnight and is currently changing hands at $0.3495. The trading price is 21 percent below the cryptocurrency's all-time high of $0.4407 recorded on December 4, 2024.
9th ranked Dogecoin (DOGE) rallied more than 2 percent overnight and is currently trading at $0.1110. DOGE is trading 85 percent below the peak price of $0.7376 recorded on May 8, 2021.
10th ranked Hyperliquid (HYPE) dropped 3.2 percent in the past 24 hours. HYPE is trading at $39.34, around 34 percent below the all-time high of $59.39 recorded on September 18, 2025.
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