Crypto Market Drops 5% Amid Strong Dollar, ETF Outflows

Crypto Market Update

• The CoinDesk 20 Index dropped 5%, with major cryptocurrencies like Bitcoin and Ethereum falling nearly 2%.
• Altcoins such as XRP, BNB, and SOL experienced larger losses. ASTR, from Aster DEX, fell by 4% due to abnormal price movements in the XPL-USDT trading pair.
• A few tokens, including MNT, CRO, KAS, OKB, and XMR, gained around 1%.

Market Influences

• The downturn is associated with a stronger dollar driven by recent U.S. GDP and jobless claims data.
• ETFs have shifted from being net buyers to sellers, with Bitcoin ETFs seeing $258 million of outflows and Ethereum ETFs $251 million.
• Whales have sold 147,000 BTC since August 21.

Regulatory and Geopolitical Factors

• Trump's tariffs on trucks, furniture, and pharmaceuticals add market uncertainty.
• U.S. regulators expressed concerns about unusual trading volumes linked to crypto treasury strategies, which may increase selling pressure.
• Geopolitical tensions highlighted by Russia's actions in Europe, with WTI crude oil up 4% this week.

Market Movements

• BTC: Up 0.4% at $109,669.81 (24hrs: -2.17%)
• ETH: Up 0.74% at $3,916.83 (24hrs: -3.12%)
• CoinDesk 20: Up 0.18% at 3,820.89 (24hrs: -3.25%)

Derivatives and Futures

• There are capital outflows from futures markets for BTC and ETH, leading to a decline in open interest.
• Volume in crypto perpetuals listed on Aster DEX reached over $46 billion in the past 24 hours.

Technical Analysis

• XRP is approaching a critical support level of $2.65-$2.70. A break below could lead to a further drop towards $2.00.

ETF Flows

• Spot BTC ETFs saw daily net outflows of -$253.4 million.
• Spot ETH ETFs saw daily net outflows of -$251.2 million.