Crypto Markets Tumble As Week Starts Bearish For Stocks

Major cryptocurrencies started the week with bearish price action, with Bitcoin and Ethereum mirroring today’s downward momentum in the stock markets after an over-exuberant performance last week.

The combined crypto market cap is down 1.5% over the past 24 hours after leading assets fell. Bitcoin (BTC) is down 0.6% and last changed hands for $90,7260, while Ethereum (ETH) dropped 1.6% to $3,060, and BNB Coin (BNB) dipped 2,3% to $615.5.

Notable gainers include Solana (SOL) with a 3.8% rally, placing it just 7% below its all-time high of $260. Ripple (XRP) jumped 7.2%, marking a seven-day surge of 90.4%. Mantra (OM) also continued its ascent, with OM posting record highs and making its way into the top 40 by market cap after soaring 20.5% in 24 hours and 197% in one week.

Hedera (HBAR) was the strongest performing top 100 cryptocurrency over the past 24 hours with 34%, followed by OM, and then Stellar (XLM) with 26.5%. Goatseus Maximums (GOAT) suffered the heaviest daily loss with a 14.3% drawdown, while Pyth Network (PYTH) fell 6.8%, and Injective (INJ) dipped 6%.

Stonks slide

U.S. stocks are also off to a bearish start to the week, with the Nasdaq 100 crashing 2.4%, the S&P 500 falling 1.32%, and the Dow Jones Industrial Average shedding 0.70%.

The price action mirrored bearishness in most Asian markets. Japan’s Nikkei 225 dipped 1.09%, Taiwan’s Taiex slid 0.86%, India’s NIFTY 50 slumped 0.36%, Singapore’s Straits Times index retraced 0.32%, and China’s SSE Composite index fell 0.21%.

The pullback may indicate that investors are hedging their bets after the U.S. Federal Reserve signaled it is in no rush to make interest rate cuts last week.

However, Korea’s KOSPI index bucked the trend with a 2.16% bounce, as did Hong Kong’s Hang Seng index with a 0.77%, and Australia’s ASX 200 with a 0.18% increase.

ETF frenzy cooled late last week

While last week’s bullish momentum was marked by eye-watering inflows to spot crypto ETFs, the week closed with capital flowing out of the sector as institutional appetites for digital assets abated.

U.S.-based Bitcoin ETFs hosted a weekly inflow of $1.67 billion, despite $400 million and $370 million exiting the funds on Thursday and Friday — comprising the third and fourth heaviest daily outflows on record, according to SoSoValue.

U.S.-based Ether ETFs posted their strongest week on record, with $515.2 million entering the funds last week. The momentum was propelled by an all-time high daily inflow of $295.5 million on Nov. 11, and came in spite of a $59.9 million outflow on Friday.