Dovish Fed Hints, Surging ETF Flows Buoy Crypto Markets

WASHINGTON (dpa-AFX) - Cryptocurrencies surged ahead on Friday as global markets cheered the dovish comments from a Fed official that spotlighted the potentially disinflationary trends in the U.S. economy. The repricing of Fed rate hike expectations, the easing in bond yields, the massive inflows to U.S.-listed Bitcoin and Ethereum Spot ETF products as well as the heavy liquidation of crypto short positions catalyzed an emphatic rally in the cryptocurrency markets.Overall cryptocurrency market capitalization has jumped more than 4 percent overnight to $2.73 trillion. Bitcoin touched a high of $82,262 and Ethereum rose to a high of $2,545.62 during the past 24 hours.Recent comments from Fed Governor Waller about giving disinflation a chance, reverberated in global markets, resulting in a repricing of Fed rate hike expectations. Governor Waller's comments about raising rates if inflation comes in hotter than expected, meanwhile put the market's spotlight on the inflation data for August due next week. Annual headline inflation stood at 3.4 percent in July, declining from 3.5 percent in June and 4.2 percent in May. The core inflation rate, excluding volatile food and fuel costs stood at 2.5 percent in July, declining from 2.6 percent in June and 2.9 percent in May.Bitcoin Spot ETF products in the U.S. witnessed net inflows jumping to $731 million on Thursday from $101 million on Wednesday. iShares Bitcoin Trust ETF (IBIT) topped with net inflows of $454 million followed by ARK 21Shares Bitcoin ETF (ARKB) that recorded inflows of $138 million.Ethereum Spot ETF products in the U.S. witnessed net inflows of $141 million on Thursday, reversing course from the net outflows of $48 million recorded on Wednesday. iShares Ethereum Trust ETF (ETHA) topped with net inflows of $72 million followed by Fidelity Ethereum Fund (FETH) that received net inflows of $65 million.A massive liquidation of short positions also supported the surge in cryptocurrency prices. During the past 24 hours, the liquidation of short positions in the crypto market far exceeded the liquidation of long positions. Liquidation of long positions amounted to $88, far lower than the liquidation of short positions which amounted to $480 million. The aggregate liquidations during the 24-hour period stood at $568 million.Anxiety ahead of the monthly payrolls data due from the U.S. on Friday morning capped overnight gains. Addition to non-farm payrolls is expected to record 56 thousand in August versus a decline of 23 thousand in July and an addition of 20 thousand in June. The unemployment rate is expected to remain steady at July's level of 4.1 thousand. The unemployment rate was at 4.2 percent in June and 4.3 percent in May.Amidst the market developments, overall crypto market capitalization has rallied 4.1 percent overnight to $2.73 trillion. The increase in market capitalization was accompanied by a 53-percent surge in trading volumes.At current prices, Bitcoin's dominance of the crypto market is 59.7 percent. Ethereum accounts for 11.3 percent of the market while other cryptocurrencies including stablecoins account for 29.0 of the overall cryptocurrency market.Bitcoin (BTC), the largest cryptocurrency is currently trading 4.5 percent higher on an overnight basis at $81,027.07. The leading cryptocurrency has gained 2.1 percent over the course of the past week, dragging down year-to-date losses to 7.4 percent.Bitcoin is continuing in the 12th position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com. The leading cryptocurrency is positioned between 11th ranked Saudi Aramco and 13th ranked Meta Platforms.Ethereum (ETH) is trading 5.4 percent higher at $2,524.75. The leading alternate coin has added 1.3 percent over the course of the past week. Year-to-date losses have dropped to 14.9 percent.Ethereum has improved one notch to the 63rd position in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.4th ranked BNB (BNB) jumped 2.4 percent overnight resulting in price increasing to $719.55.5th ranked XRP (XRP), a payments-focused cryptocurrency surged 6.2 percent overnight and is currently trading at $1.44. Weekly gains are around 2.5 percent.The price of 7th ranked Solana (SOL) rallied 3.8 percent overnight to $103.93. U.S.-listed Solana Spot ETF products witnessed net inflows of $6 million on Thursday.TRON (TRX) ranked 8th overall is currently trading 0.2 percent higher at $0.3280.9th ranked Hyperliquid (HYPE) is trading 6.6 percent higher on an overnight basis, at $86.87.Zcash (ZEC) positioned as 10th rank overall surged close to 20 percent overnight to trade at $994.90.For More Cryptocurrency News, visit rttnews.comCopyright(c) 2026 RTTNews.com. All Rights ReservedCopyright RTT News/dpa-AFX