Cryptocurrency prices experienced a decline amidst rising global trade tensions. Still, strong inflows continue to be driven by ETH ETFs.
The cryptocurrency market experienced a slide on Wednesday, with Bitcoin (BTC) and Ethereum (ETH) both slipping more than 1%, amidst broader macro uncertainty following new trade announcements by U.S. President Donald Trump.
Bitcoin dipped 1.2% on the day to just above $118,000 after experiencing record highs of $123,000 last week. Meanwhile, ETH dropped 2.9% in the past 24 hours to $3,607, following Monday’s rally above $3,700, its highest level since December, according to CoinGecko.
XRP experienced more prominent losses on the day, decreasing by more than 9% to $3.24. Solana (SOL) dropped by more than 6% to $189.
SOL’s drop comes one day after the coin broke above $200 for the first time since February. Shawn Young, Chief Analyst at MEXC, said in a statement shared with The Defiant that SOL’s rally above $200 reflects a “broader validation of its evolving market narrative and appeal.”
The overall cryptocurrency market capitalization is currently at $3.93 trillion, having decreased by 6% over the past 24 hours, according to CoinGecko. Over the same period, a trading volume of $220 billion was recorded.
In the past 24 hours, crypto positions experienced over $561 million in liquidations, according to CoinGlass. Long positions constituted the majority at $442 million, while shorts totaled $119 million. Ethereum experienced the most liquidations at nearly $123 million, followed by altcoins at around $84 million. Bitcoin liquidations amounted to approximately $55 million.
ETH ETFs Celebrate First Anniversary
In the exchange-traded fund (ETF) space, ETH ETFs attracted nearly $534 million in inflows on Tuesday, marking the third-largest single-day inflow on record. These latest inflows prolong a 13-day streak of positive flows.
This follows just a week after ETH ETFs attained an all-time high with over $726 million in a single day. Notably, July 23 also commemorates the one-year anniversary of ETH ETFs launching in the U.S.
Gilbert explained that with clearer U.S. regulatory guidance on ETF staking expected soon, liquid staking tokens like stETH could become key tools for institutions, helping them to access the “full potential of staking rewards while staying liquid.”
Meanwhile, U.S. spot Bitcoin ETFs saw negative net flows for the second consecutive day, totaling nearly $68 million on Tuesday, according to SoSoValue.
Trump Leads Trade Talks
President Trump’s recent trade announcements contribute to today’s market downturn.
On Tuesday night, Trump announced a major trade deal with Japan on his social media platform, Truth Social; the deal involves a $550 billion investment.
“A massive Deal with Japan was just completed, perhaps the largest Deal ever made. Japan, at my direction, will invest $550 Billion Dollars into the United States, which will receive 90% of the Profits,” Trump claimed in his post. “This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it.”
The president also added that Japan will open its country to trade, including cars and trucks, rice and certain other agricultural products, and other goods, as well as pay reciprocal tariffs of 15% to the U.S.
Earlier today, Trump stated that he would only lower tariffs if a nation agreed to open its markets. “IF NOT, MUCH HIGHER TARIFFS! Japan’s Markets are now OPEN (for first time ever!). USA BUSINESSES WILL BOOM!” he posted on Truth Social.
On Tuesday, Trump also announced a trade agreement with the Philippines on Truth Social; this deal would allow a 19% tariff on certain goods. The Philippines is among several nations that received notices from the White House about steep tariffs set to take effect on August 1.
