Cryptocurrencies traded higher overnight as market sentiment revived, supported by a retreating dollar, easing bond yields, and increased expectations for a Federal Reserve rate cut. Bitcoin and Ethereum led gains among major coins, while ETF outflows slowed. The aggregate crypto market capitalization rose 1.4 percent.
The cryptocurrency market experienced a minor rebound, with most top coins posting gains overnight. This uptick came amidst a revival in sentiment, driven by several macroeconomic factors. The 6-currency Dollar Index fell to 99.97 from a previous close of 100.20, after reaching a high of 100.36 on Wednesday. Bond yields eased across various tenors and regions, reducing the opportunity cost of holding non-interest-bearing assets like cryptocurrencies. Specifically, yields on 30-year U.S. Treasuries declined 0.17 percent, while the ten-year bond softened by 0.43 percent; the 5-year and 2-year tenors eased more than half a percent each.
Renewed expectations for a 25-basis-point rate cut by the Federal Reserve on December 10 further boosted optimism. The CME FedWatch tool showed the probability rising to 67.3 percent from 62 percent a day earlier. In the U.S., outflows from Bitcoin Spot ETF products dropped to $137 million on Wednesday from $566 million the previous day. Ethereum Spot ETF outflows also declined to $111.9 million from $219 million on Tuesday.
Bitcoin gained 1.3 percent to $103,079.28, marking a 24-hour high of $104,535; it remains 18 percent below its all-time high of $126,198.07 recorded on October 7. The coin posted a weekly loss of 6.4 percent but year-to-date gains of over 10.3 percent in 2025. Ethereum rallied 2.8 percent to $3,389.74, with year-to-date gains of 1.8 percent and 32 percent below its all-time high. Other notable performers included XRP, up 3.5 percent to $2.30; BNB, up 1.2 percent to $954.81; and Solana, up 1.9 percent to $159.10 despite year-to-date losses of 15.9 percent.
Among the top 100 cryptocurrencies, 56 gained more than 1 percent overnight, while only 10 declined by more than 1 percent. Standouts included Internet Computer (ICP) with a 28.3 percent rally and Zcash (ZEC) up 15.8 percent. However, Story (IP) fell 7.5 percent, and OKB dropped nearly 4 percent. Trading volume decreased 44 percent to $160 billion. For context, gold futures rose 0.57 percent to $4,015.52 per troy ounce, holding year-to-date gains of over 52 percent.