Bitcoin recovered above $83,000 as easing geopolitical tensions in the Middle East helped restore investor confidence, although broader cryptocurrency markets remained under pressure from rising U.S. Treasury yields, a stronger dollar and continued outflows from exchange-traded funds (ETFs).
The world’s largest cryptocurrency gained approximately 1% over the past 24 hours, trading at $83,044.55 after reaching an intraday high of $83,418.29. The recovery followed comments from U.S. President Donald Trump suggesting that Washington would not launch military strikes against Iran before the midterm elections. Trump also described ongoing discussions as productive, helping ease concerns about a potential escalation in the region.
Despite Bitcoin’s rebound, sentiment across the digital asset market remained cautious, with several major cryptocurrencies recording losses.
Cryptocurrency Market Capitalization Reaches $2.8 Trillion
The global cryptocurrency market capitalization increased by 0.14% over the previous 24 hours to approximately $2.8 trillion, while trading volumes surged 21%, reflecting heightened market activity.
However, the modest increase in overall market value concealed significant volatility among individual digital assets.
Of the 100 largest cryptocurrencies by market capitalization, approximately 24 recorded daily gains exceeding 1%, while 47 experienced losses of more than 1%.
Liquidations across the cryptocurrency derivatives market exceeded $1 billion during the reporting period. Long positions accounted for approximately $826 million, compared with $197 million in short-position liquidations.
The substantial imbalance suggests that traders betting on higher cryptocurrency prices suffered the greatest losses during the recent market volatility.
Federal Reserve Expectations and Rising Treasury Yields Weigh on Sentiment
Macroeconomic developments continued to influence cryptocurrency trading, particularly expectations surrounding U.S. monetary policy.
Market participants assigned a 19.4% probability to a 25-basis-point interest rate increase by the Federal Reserve in October, indicating relatively limited expectations of further monetary tightening at the upcoming policy meeting.
Meanwhile, the yield on the benchmark 10-year U.S. Treasury note climbed to 5.248%, representing an increase of 0.36% from the previous close. Government bond yields declined across much of Europe.
The U.S. dollar also strengthened, with the Dollar Index rising 0.18% to 102.32 from 102.14 in the previous session.
Higher Treasury yields and a stronger dollar can reduce demand for speculative investments, including cryptocurrencies, as investors reassess risk exposure and seek returns from traditional financial instruments.
Bitcoin Price Recovers, but Weekly Losses Continue
Bitcoin (BTC) traded at $83,044.55, gaining approximately 1% over the previous 24 hours.
The cryptocurrency fluctuated between $80,336.91 and $83,418.29 during the session, highlighting continued uncertainty despite its latest recovery.
Bitcoin remained approximately 34% below its reported record high of $126,198.
Over the previous seven days, Bitcoin declined 4.2%, while its year-to-date losses narrowed to 5.1%.
According to market capitalization rankings published by CompaniesMarketCap, Bitcoin moved up one position to become the world’s 12th-largest asset, placing it between Broadcom and Saudi Aramco.
Bitcoin ETF Outflows Moderate
U.S.-listed spot Bitcoin ETFs continued to experience investor withdrawals, although the pace of outflows slowed.
Net outflows declined to $244 million on Thursday, compared with $485 million on Wednesday.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) recorded the largest withdrawals, totaling approximately $197 million.
The reduction in ETF outflows offered some encouragement to investors, although continued withdrawals indicated that institutional demand remained under pressure.
Ethereum Falls Below $2,500 as ETF Withdrawals Continue
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, moved in the opposite direction from Bitcoin.
Ether declined approximately 1.3% over the previous 24 hours to $2,496.23, trading between $2,406.15 and $2,540.17 during the session.
The cryptocurrency remained nearly 50% below its reported all-time high of $4,953.
Ethereum’s weekly losses reached 9.2%, while its year-to-date decline stood at 15.6%.
Institutional investment products linked to Ethereum also experienced continued withdrawals.
U.S.-listed spot Ethereum ETFs recorded net outflows of $73 million on Thursday, compared with $161 million on Wednesday and $202 million on Tuesday.
BlackRock’s iShares Ethereum Trust ETF (ETHA) accounted for the largest share of Thursday’s withdrawals, with approximately $71 million leaving the fund.
Ethereum maintained its position as the world’s 61st-largest asset by market capitalization, according to CompaniesMarketCap.
BNB, XRP and Solana Record Losses
Several leading alternative cryptocurrencies, commonly known as altcoins, remained under selling pressure despite Bitcoin’s recovery.
BNB, the fourth-largest cryptocurrency, declined 2.4% to $741.54.
XRP, a cryptocurrency associated with cross-border payments, slipped 0.27% to $1.38.
Solana (SOL), ranked seventh by market capitalization, dropped approximately 2.1% to $110.31.
The token remained around 63% below its reported record high of $294.33.
U.S.-listed spot Solana ETFs recorded net outflows of $4 million on Thursday, improving slightly from the previous day’s $5 million in withdrawals.
The Bitwise Solana Staking ETF (BSOL) registered approximately $5 million in outflows.
Meanwhile, TRON (TRX) posted a marginal gain of 0.05%, trading at $0.3345.
Hyperliquid and Zcash Face Additional Selling Pressure
Hyperliquid (HYPE), the ninth-largest cryptocurrency, declined 2.97% to $85.72.
The token traded approximately 13% below its reported all-time high of $97.98.
U.S.-listed Hyperliquid investment products experienced net withdrawals of $10 million on Thursday, attributed entirely to outflows from the 21Shares Hyperliquid Staking ETF (THYP).
Zcash (ZEC), ranked tenth, recorded a sharper decline of 8.7%, bringing its price to $1,205.60.
The privacy-focused cryptocurrency remained approximately 80% below its reported record high of $5,941.80.
Spot Zcash investment products listed in the United States experienced net outflows of $19 million on Thursday, compared with $9 million on Wednesday.
The increase in withdrawals reflected continued selling pressure affecting several major digital assets.
Starknet Surges Nearly 29%, While Algorand Leads Declines
While many major cryptocurrencies struggled, Starknet (STRK) emerged as one of the strongest performers.
The token, ranked 89th by market capitalization, surged approximately 29% over the previous 24 hours, extending its weekly gains to nearly 68%.
The rally followed reports that Starknet was considering a move away from Ethereum to develop quantum-resistant capabilities by 2027.
Despite the sharp recovery, STRK remained approximately 98% below its February 2024 record high of $3.6619.
At the opposite end of the market, Algorand (ALGO), ranked 63rd, recorded the largest daily decline among the top 100 cryptocurrencies, falling more than 10%.
The contrasting performances highlighted the increasingly selective nature of cryptocurrency investment activity.
Bitcoin Outlook: Geopolitical Developments Remain in Focus
Bitcoin’s recovery above $83,000 suggests that easing geopolitical concerns can quickly improve sentiment across cryptocurrency markets.
However, the broader market continues to face several challenges, including elevated U.S. Treasury yields, dollar strength, ETF withdrawals and uncertainty surrounding Federal Reserve policy.
The substantial volume of liquidations also demonstrates how quickly leveraged positions can be affected by sudden market movements.
Investors are likely to monitor developments involving the United States and Iran, upcoming economic indicators and institutional investment flows for signs of whether Bitcoin’s recovery can be sustained.
For now, the cryptocurrency market remains divided, with Bitcoin showing signs of stabilization while Ethereum and several major altcoins continue to experience selling pressure.
