Key facts
- Ether fell 4% to $1,850, underperforming bitcoin.
- A sell-off in Asian semiconductor stocks, including Taiwan Semiconductor and Japan's Nikkei 225, preceded the crypto market decline.
- Hyperliquid's HYPE token dropped 10%, marking its steepest weekly decline since June.
- U.S. spot ether ETFs attracted nearly $97 million in inflows this week, with BlackRock's funds receiving the majority.
- Oil prices surged as Middle East tensions escalated, with Brent crude reaching $85 a barrel.
Ether experienced a significant sell-off, dropping 4% to $1,850, underperforming bitcoin which fell 2% to $63,400. The decline in cryptocurrencies was attributed to a broader sell-off in Asian semiconductor stocks, with Japan's Nikkei 225 slumping 5% and Taiwan Semiconductor also seeing substantial losses. Hyperliquid's HYPE token was the hardest hit among major cryptocurrencies, falling 10% on the day and 12% for the week. Other tokens like Solana, XRP, BNB, TRON, and Dogecoin also registered losses.
Despite the downturn, U.S. spot ether ETFs saw inflows of nearly $97 million over the first three days of the week, with BlackRock's funds attracting the majority of the investment. Market participants described the move as consolidation under resistance rather than a confirmed reversal, with sentiment gauges remaining in extreme fear.
In contrast to the risk-off sentiment in equities and crypto, oil prices surged. Brent crude rebounded to approximately $85 a barrel, marking a 12% weekly gain, driven by escalating Middle East tensions and reduced shipping traffic through the Strait of Hormuz. This rise in oil prices is rekindling inflation concerns.