Key facts
- Crypto market cap fell to $2.82 trillion, down $90 billion in 24 hours.
- Bitcoin price fell over 4% in 48 hours, trading near $81,700.
- Japan's annual inflation rate reached 2.1% in September 2026.
- US 10-year Treasury yield climbed to 4.98% on Friday.
- Spot Bitcoin ETFs experienced $635.6 million in outflows on Thursday.
The cryptocurrency market experienced a significant downturn, with its market capitalization falling to $2.82 trillion, a decrease of nearly $90 billion over 24 hours. Bitcoin prices extended a 48-hour decline to over 4%, trading near $81,700. This selloff was attributed to several factors, including rising inflation in Japan and renewed concerns over artificial intelligence spending.
Japan's annual inflation rate accelerated to 2.1% in September 2026, the highest since December 2025, supporting expectations of further monetary tightening by the Bank of Japan. This led to a strengthening of the Japanese yen against the US dollar and a rise in the dollar index. Meanwhile, a selloff in US tech stocks, including Meta and Nvidia, due to doubts about AI capital expenditures, prompted investors to move towards safer assets like government bonds. This weakness in tech stocks correlated with a decline in crypto assets, leading to substantial outflows from spot Bitcoin, Ethereum, and Solana ETFs on Thursday, although XRP ETFs saw minor inflows.
Volatility was also influenced by the expiry of approximately $1.31 billion in Bitcoin options and $250 million in Ethereum options on Deribit. The put/call ratios for Bitcoin and Ethereum indicated a bearish sentiment around the expiry.