On Thursday, the cryptocurrency market experienced another downturn, with stocks linked to digital currencies also declining due to a significant upward revision in U.S. economic growth figures.
The latest report from the U.S. government revealed that the gross domestic product (GDP) grew at an annualized rate of 3.8% during the second quarter, surpassing both the previous estimate of 3.3% and initial reports suggesting a 3% increase.
In addition, initial jobless claims fell sharply to 218,000 from last week’s figure of 232,000 and were well below expectations set at 235,000 — challenging assumptions about a weakening employment market.
This unexpectedly strong data dampened hopes for further interest rate cuts by the Federal Reserve next month. Traders now see a higher probability—17%, up from just 8% yesterday—that rates will remain unchanged according to CME FedWatch.
The yield on U.S. Treasury bonds for ten years surged close to 4.20%, marking its highest point in three weeks following these reports; this contributed to declines in American stock markets as Nasdaq dropped over one percent before trimming losses back down half percent.
Bitcoin (BTC) had already been trading weakly recently but fell beneath $111k—its lowest since early September—and later rebounded slightly above $111k yet still showing negative performance around minus one-point-six-percent within twenty-four hours period; Ethereum (ETH) dipped under four thousand dollars experiencing decline by four-point-five-percent same timeframe while Solana (SOL) Dogecoin (DOGE) Avalanche(AVAX) Sui(SUI<//spa/span/)) faced even steeper drops too.
Ethereum has lost ground against Bitcoin after months outperforming it—the ETH/BTC ratio returned flat year-to-date compared with twenty-percent rise observed merely four weeks ago.
Solana’s popularity surged amid hype surrounding newly established digital asset treasury companies alongside increased corporate adoption however saw six percent drop past day alone along nearly twenty percent fall throughout last week.
Stocks lower
Crypto-related stocks suffered substantial losses across board Thursday: MicroStrategy(MSTR)—largest corporate holder bitcoin slipped four-and-half percentage points whereas Coinbase(COIN)—major crypto exchange declined little over fourth percentage point miners fared worse still Cipher Mining(CIFR) despite early rally news Google AI hosting deal went down nine-point-four-percentage HIVE Digital(HIVE), Bitdeer(BTDR), Bitfarms(BITF) plunged between six-eight percentages range likewise stablecoin issuer Circle(CRCL) retreated same extent Galaxy Digital(GLXY) slid three-seven extending sector-wide weakness.