Positive sentiment dominates the crypto market as Bitcoin has surpassed the $116k mark, fueled by ongoing expectations of a rate cut from the Federal Reserve. The overall market capitalization has seen an increase of over one percent in the last 24 hours. The surge in cryptocurrency markets comes in the wake of the persistent inflation. Data indicates that headline annual inflation has increased, as anticipated, to 2.9 percent, up from 2.7 percent in July. The core component held firm at 3.1 percent, aligning with expectations.
In a month-on-month comparison, headline inflation rose to 0.4 percent, up from 0.2 percent in July. Markets were anticipating a rise to 0.3 percent. The core component, however, held firm at 0.3 percent, aligning with expectations. Amidst data indicating price pressures and reigniting worries about stagflation, market participants are anticipating a dovish approach from the Federal Reserve. In the last 24 hours, expectations for a rate cut have intensified significantly. Reports indicates a shift in expectations, with a projected increase of 50 basis points, elevating rates to 7.5 percent from 6.1 percent just a day prior. Expectations of a 25-basis points rate cut have decreased to 92.5 percent from 93.9 percent a day earlier. The uptick in sovereign bond yields and the resurgence of the U.S. Dollar did not manage to suppress the positive sentiment in the crypto market. Over 50 percent of the top 100 cryptocurrencies continue to show overnight gains exceeding one percent. In contrast, just 7 are experiencing overnight losses exceeding a percent.
The overall cryptocurrency market capitalization has seen a 1.1 percent rise overnight, reaching $4 trillion. Meme category cryptos experienced a notable increase of 3.6 percent in market capitalization. The Made in America cryptocurrencies saw a notable overnight increase of 1.8 percent in market capitalization. The market capitalization of the cryptocurrencies earmarked for the U.S. Strategic Crypto Reserve saw an overnight increase of 1.3 percent. Bitcoin holds steady at the 8th position, while Ethereum has climbed to the 22nd rank in the global asset rankings based on market capitalization, according to companiesmarketcap.com. In the U.S., crypto ETF products have been experiencing robust inflows, bolstering overall market sentiment. In the U.S., Bitcoin-based Spot ETF products experienced inflows totaling $553 million, a decrease from $742 million reported on Wednesday. The IBIT has seen impressive inflows, reaching a total of $366 million.
On Thursday, Ethereum-based Spot ETF products saw net inflows of $113 million, a decrease from the $172 million recorded the previous day. FETH has seen a surge in inflows, reaching a remarkable $88 million. Bitcoin, having reached a peak of $116,317 in the last 24 hours, has now pulled back to $114,916, reflecting overnight gains of 0.72 percent and a weekly increase of 1.5 percent. Despite a 5.4 percent decline in BTC over the last 30 days, the year-to-date gains remain impressive at over 23 percent. The cryptocurrency is presently trading approximately 8 percent lower than its all-time high of $124,457.12, which was reached on August 14. Ethereum has experienced a notable increase of 2.3 percent, propelling the leading alternative coin to a value of $4,512.74, now sitting just 9 percent shy of its all-time high. Despite experiencing a 3.9 percent decline over the past 30 days, Ethereum has surged by 35.5 percent in 2025. The trading activity over the past 24 hours fluctuated between $4,561 and $4,398. Solana has ascended to the 5th position overall, experiencing an overnight surge of 4.9 percent. The coin is presently valued at $238.82, marking a decline of approximately 19 percent from its all-time high. SOL stands out as the top-ranking cryptocurrency, showcasing impressive gains over the past 30 days.
BNB, currently ranked 6th, saw an overnight increase of 1.1 percent, bringing its trading price to $908.60. BNB reached an all-time high of $909.38 earlier in the trading session. Dogecoin, holding the 8th rank, surged by 5 percent overnight and is now trading at $0.2618. DOGE stands out as the highest-ranking cryptocurrency, uniquely positioned as the sole asset in the top 10 that has experienced losses on a year-to-date basis. TRON, now positioned at 9th overall, saw a 0.8 percent increase overnight and is currently trading at $0.3477. Cardano, currently holding the 10th rank, experienced a 1 percent rally overnight, bringing its trading price to $0.8867. MemeCore, currently sitting at the 49th rank, led the overnight gains among the top 100 cryptocurrencies, achieving an impressive increase of over 10 percent. 56th ranked Bonk recorded an impressive increase of 7.3 percent. In the last 24 hours, Pump.fun, currently ranked 54th, and Pudgy Penguins, holding the 50th position, both saw an increase of over 6.7 percent.