Key Takeaways
- • Total crypto market capitalisation fell 2.8% to $2.72T on Wednesday, its lowest level in nearly a month, as big tech stock sell-offs and a jump in rate-hike expectations after above-forecast US core inflation pressured risk assets.
- • Bitcoin dropped below its 50-day moving average to a low of $80.4K after failing to climb above $84K, with buyers returning as European trading began and the price recovering toward $81.3K, according to FxPro analysts.
- • Only six of the top 100 coins by market capitalisation were rising, with Filecoin (-9.1%) and SushiSwap (-8.5%) among the steepest decliners among liquid coins.
- • The sentiment index fell to 53, a new low since 17 September, and staying in the upper half of the scale would signal a genuine shift away from bear-market conditions.
- • Wintermute warns that reduced crypto ETF inflows and high US Treasury yields could extend the decline, while CryptoQuant reports stablecoin reserves on exchanges at an annual low.
Summary
The crypto market accelerated its decline on Wednesday, with total market capitalisation falling 2.8% to $2.72T, its lowest level in nearly a month, according to FxPro Analyst Team. The sell-off followed a slump in big tech stocks and a surge in the probability of interest rate hikes after US core inflation exceeded expectations. Of the top 100 coins by market capitalisation, only six were rising. Among the most liquid tokens, Tron and Hyperliquid fell modestly, while Filecoin and SushiSwap posted declines of 9.1% and 8.5%, respectively.
Bitcoin fell after the inflation data was published, but it had already been selling off as it attempted to climb above $84K. Low liquidity and the broader risk-asset sell-off pushed the price below its 50-day moving average to a low of $80.4K. Buyers stepped in as trading opened in Europe, lifting the price back toward the $81.3K signal line. FxPro notes that bulls currently control the situation and that market participants are buying dips.
Market sentiment is also being tested. The sentiment index dropped to 53, its lowest reading since 17 September. According to the report, the index spent only a single day in its upper half between October 2025 and August 2026, so holding that range would indicate a fundamental shift in sentiment.
On-chain and flow indicators are mixed. Wintermute warns that declining crypto ETF investment and high US government bond yields could keep pressure on the market. CryptoQuant data shows stablecoin reserves on exchanges have fallen to an annual low, while the ratio of Bitcoin volume to stablecoins is near an annual high. Strategy founder Michael Saylor has argued that a new bull cycle is beginning, citing bank interest in digital assets, securities tokenisation and crypto lending. Separately, the Alpenglow mainnet upgrade is scheduled for launch on 21 October and is expected to cut final transaction confirmation time from 12.8 seconds to 150 milliseconds.
Bitcoin fell after the inflation data was published, but it had already been selling off as it attempted to climb above $84K. Low liquidity and the broader risk-asset sell-off pushed the price below its 50-day moving average to a low of $80.4K. Buyers stepped in as trading opened in Europe, lifting the price back toward the $81.3K signal line. FxPro notes that bulls currently control the situation and that market participants are buying dips.
Market sentiment is also being tested. The sentiment index dropped to 53, its lowest reading since 17 September. According to the report, the index spent only a single day in its upper half between October 2025 and August 2026, so holding that range would indicate a fundamental shift in sentiment.
On-chain and flow indicators are mixed. Wintermute warns that declining crypto ETF investment and high US government bond yields could keep pressure on the market. CryptoQuant data shows stablecoin reserves on exchanges have fallen to an annual low, while the ratio of Bitcoin volume to stablecoins is near an annual high. Strategy founder Michael Saylor has argued that a new bull cycle is beginning, citing bank interest in digital assets, securities tokenisation and crypto lending. Separately, the Alpenglow mainnet upgrade is scheduled for launch on 21 October and is expected to cut final transaction confirmation time from 12.8 seconds to 150 milliseconds.
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