Global AI Selloff Hurts Crypto Market Sentiment

WASHINGTON (dpa-AFX) - Sentiment in the crypto market suffered amidst a global selloff in AI related stocks. South Korea's KOSPI index declined 3.7 percent whereas Japan's Nikkei 225 shed more than a percent. The tech-heavy Nasdaq Composite is currently trading below the flatline. Amidst the weak sentiment, overall crypto market capitalization has declined more than half percent whereas Bitcoin traded between $82,446 and $81,107.Meanwhile, the CME FedWatch tool that tracks the expectations of interest rate traders currently shows the likelihood of another quarter-percent rate hike in October at 14.9 percent versus 18.8 percent a day earlier and 22.1 percent a week earlier. The next FOMC meeting is 8 days away.In respect of the December FOMC, expectations of a half percentage rate hike from the current level of 3.75-4.0 percent have decreased to 12.9 percent from 16.2 percent a day earlier and 18.7 percent a week earlier. Simultaneously likelihood of a quarter percentage rate hike has increased to 75.3 percent from 72.5 percent a day earlier and 69.3 percent a week earlier. The final FOMC of the year is scheduled for December 9.The fading rate hike expectations from the Federal Reserve however failed to erase the negative sentiment towards cryptocurrencies triggered by the selloff in technology and artificial intelligence stocks. The decline in the six-currency Dollar Index to 101.73 from 101.98 a day earlier also failed to boost crypto market sentiment.The CMC Crypto Fear and Greed Index that tracks the crypto market sentiment has dropped further in the neutral territory, to 48 from 49 a day earlier and 55 a week earlier.Aggregate liquidations during the 24-hour period amounts to $157 million. Liquidation of long positions amounted to $109 million, while the liquidation of short positions amounts to 48 million only.Overall cryptocurrency market capitalization has dropped 0.59 percent to $2.73 trillion. The rally is accompanied by a 7-percent dip in trading volumes.Bitcoin (BTC), the largest cryptocurrency is currently trading 0.57 percent lower on an overnight basis at $81,664.66. Despite gains of 1.4 percent in the past 30 days, Bitcoin is trading with year-to-date losses of 8 percent.Bitcoin Spot ETF products in the U.S. witnessed net inflows jumping to $527 million on Monday versus net outflows of $82 million on Friday. Market leader iShares Bitcoin Trust ETF (IBIT) topped with inflows of $665 million.Bitcoin is currently 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 Broadcom.Ethereum (ETH) has dropped 0.40 percent overnight to $2,396.53. The leading alternate coin has lost 4.5 percent in the past week.Ethereum Spot ETF products in the U.S. witnessed net outflows increasing to $103 million on Monday from $70 million on Friday. iShares Ethereum Trust ETF (ETHA) topped with net outflows of $95 million.Ethereum is currently ranked 61st in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.4th ranked BNB (BNB) rallied 0.42 percent overnight resulting in price increasing to $729.98.5th ranked XRP (XRP), a payments-focused cryptocurrency slipped 0.42 percent overnight and is currently trading at $1.29.The price of 7th ranked Solana (SOL) slipped 0.39 percent overnight to $104.35. U.S.-listed Solana Spot ETF products witnessed net outflows decreasing to $7 million on Monday from $13 million on Friday. Bitwise Solana Staking ETF (BSOL) topped with net outflows of $5 million.TRON (TRX) ranked 8th overall is currently trading 0.41 percent lower at $0.3304.9th ranked Hyperliquid (HYPE) erased 0.63 percent on an overnight basis to $78.90.U.S.-listed Hyperliquid Spot ETF products witnessed nil flows on both Monday and Friday.10th ranked Zcash (ZEC) rallied 1.5 percent overnight and the cryptocurrency is currently trading at $1,154.79. U.S.-listed Zcash Spot ETF products witnessed net outflows of $10 million on Monday as compared with net outflows of $1 million on Friday.For More Cryptocurrency News, visit rttnews.comCopyright(c) 2026 RTTNews.com. All Rights ReservedCopyright RTT News/dpa-AFX