Key Highlights
- Bitcoin traded near $83,300 after falling roughly 3% over 24 hours, while the broader crypto market capitalization dropped toward $2.9 trillion.
- XRP was among the biggest large-cap losers, falling more than 8% at one point as ETH, SOL and DOGE also traded lower.
- Crypto liquidations reached about $617 million over 24 hours, including $546 million in long positions.
- U.S. spot Bitcoin ETFs attracted $346.9 million on September 23, while Ethereum ETFs recorded another $104.5 million.
- The U.S. 10-year Treasury yield moved above 5.1% as markets priced a substantially higher path for Federal Reserve rates.
The crypto market turned lower on Thursday as a sharp rise in U.S. Treasury yields pressured risk assets and reversed part of the rally seen at the beginning of the week.
The global cryptocurrency market capitalization stood around $2.92 trillion, down roughly 3.4% over 24 hours, according to CoinGecko. Bitcoin accounted for about 57% of the total market.
Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL) and Dogecoin (DOGE) were all trading lower, reversing part of the rally that had pushed Bitcoin above $87,000 earlier this week.
Bitcoin Falls Back Toward $83,000
Bitcoin was trading around at $83,942.62 at 10:00 a.m. ET (14:00 UTC), down from $85,686.06 at the same time a day earlier according to CoinGecko. The decline has erased part of Bitcoin’s early-week rally.
The reversal comes only days after Bitcoin broke above $86,000 amid a sharp short squeeze and strong spot ETF demand. U.S. Bitcoin ETFs recorded $999 million in net inflows on September 21 alone as BTC accelerated higher.
Ethereum, XRP, Solana and Dogecoin Turn Lower
Ethereum was trading near $2,660, with CoinGecko data showing a 24-hour range between approximately $2,635 and $2,698. ETH remained up more than 8% over seven days despite Thursday’s pullback.
XRP experienced a much sharper sell-off. The token fell as low as $1.45 over the previous 24 hours and was trading around $1.50 later in the session, according to CoinGecko.
The decline came even as U.S. spot XRP ETFs recorded $18.04 million in net inflows on September 23, taking cumulative inflows across the products to roughly $1.75 billion, according to ETF flow data from Sosovalue.
Solana traded around $114.83, with its 24-hour range stretching from $112.72 to $116.32, according to CoinGecko.
Dogecoin traded near $0.0946 after falling more than 5% over 24 hours, with DOGE reaching a low near $0.0917, CoinGecko data showed.
Treasury Yields Hit Crypto as Fed Rate Expectations Rise
Thursday’s crypto weakness coincided with another sharp move in the U.S. bond market.
The benchmark 10-year Treasury yield moved above 5.1%, reaching levels last seen in 2007, while the 20-year yield approached 5.5% as investors adjusted to the prospect of higher interest rates for longer.
Interest-rate markets were pricing a federal funds target range of 4.75% to 5% by June 2027, compared with the current 3.75% to 4% range. If realized, that would amount to four additional quarter-point increases.
That pricing reflects market expectations rather than a commitment from the Federal Reserve.
The Fed already raised its target rate by 25 basis points at its September meeting. Traders can track changing market-implied probabilities for future decisions through the CME FedWatch Tool.
Higher Treasury yields can increase the relative appeal of government debt while raising financing costs across markets, creating pressure on risk assets including technology stocks and cryptocurrencies.
$617 Million Liquidated as Long Traders Get Hit
The decline also triggered another large derivatives flush.
Around $617 million in cryptocurrency positions were liquidated over the previous 24 hours, with long positions accounting for about $546 million and short liquidations totaling roughly $71 million, according to CoinGlass data.
Bitcoin accounted for around $191 million in liquidations, while Ethereum positions contributed another $140 million.
The positioning is notable because the market was dealing with the opposite setup only days earlier.
Bitcoin’s surge above $85,000 earlier in the week triggered heavy short liquidations as traders betting against the rally were forced out. Thursday’s decline instead hit traders positioned for further upside.
The reversal shows how quickly leverage shifted following Bitcoin’s breakout.
Bitcoin ETFs Add Another $346.9 Million
Spot ETF demand has remained considerably stronger than the derivatives market would suggest.
U.S. spot Bitcoin ETFs recorded $346.9 million in net inflows on September 23, according to Farside Investors.
BlackRock’s IBIT led with $166.3 million, followed by Fidelity’s FBTC at $143.2 million. Morgan Stanley’s MSBT added $32.4 million.
The September 23 inflow followed $999 million on September 21 and another $714.7 million on September 22.
That means U.S. spot Bitcoin ETFs absorbed more than $2 billion across those three trading sessions alone.
Ethereum ETFs Also Remain Positive
U.S. spot Ethereum ETFs recorded $104.5 million in net inflows on September 23, according to Farside Investors.
BlackRock’s ETHA contributed $50.8 million, while Fidelity’s FETH attracted $41.3 million.
The funds had previously attracted $270 million on September 21 and $162.2 million on September 22.
The ETF numbers create one of the more notable divergences in Thursday’s market: spot institutional products continued receiving capital even as crypto prices moved lower and leveraged long positions were liquidated.
Crypto Stocks Also Come Under Pressure
The risk-off move extended to U.S.-listed crypto companies.
Strategy, Coinbase and Circle were all trading lower around Thursday’s U.S. session after Bitcoin slipped below $84,000. Strategy led the early decline, falling more than 3% in premarket trading, while Coinbase and other crypto-linked shares also moved lower, according to market reports.
The weakness follows strong gains earlier in the week when Bitcoin’s move above $85,000 lifted Coinbase, Strategy, Robinhood and several Bitcoin miners.
Coinbase had closed September 23 at $198.13, down 1.46% on the session, while Robinhood closed at $122.70, down 1.25%. Strategy finished at $162.20, down 3.07%, and MARA closed at $13.35, down 2.05%.
What Is Driving the Crypto Market Today?
Thursday’s decline is being driven by a combination of rising bond yields, higher expectations for future Fed rates and the unwinding of leveraged long positions rather than a single crypto-specific event.
The global crypto market has lost more than 3% over 24 hours, while Bitcoin has fallen back toward $83,000 and XRP has significantly underperformed BTC and ETH, according to CoinGecko market data.
At the same time, ETF flows show that investors in U.S. spot Bitcoin and Ethereum funds have continued adding exposure. Bitcoin ETFs attracted $346.9 million on September 23 and Ethereum products added $104.5 million, according to Farside Investors.
That leaves the market with two competing forces: tightening macro conditions and leveraged selling on one side, and continued spot ETF demand on the other.
Bitcoin’s ability to hold the low-$83,000 region will now be closely watched after BTC gave back much of its move above $86,000. Treasury yields and expectations for the Fed’s next rate move are also likely to remain major macro variables for crypto traders.
