The sentiment in the crypto market remains subdued as investors eagerly await critical updates on U.S. GDP growth and initial jobless claims, which are expected to significantly influence the Federal Reserve’s monetary policy outlook. The second estimate of the Q2 GDP and the weekly data on initial jobless claims are scheduled for release on Thursday morning.

In July, the U.S. Bureau of Economic Analysis had reported an annualized GDP growth of 2.8% for the second quarter, up from 1.4% in the first quarter and 3.4% in the last quarter of the previous fiscal year. This data is particularly important as global markets, including the crypto market, experienced significant volatility in early August due to fears of a recessionary spiral in the United States.

Investors are also keenly monitoring the initial jobless claims data for the week ending August 24, as they anticipate a potential rate cut by the Fed in September. The number of unemployment benefit claims remained steady at 232,000 last week, mirroring figures from the previous week and close to the levels seen earlier in August. These numbers serve as a leading indicator of labor market conditions and have gained added importance after Fed Chair Jerome Powell emphasized the Fed’s focus on employment risks over inflation during his Jackson Hole speech.

Amid this uncertainty around monetary policy, the overall crypto market capitalization dipped by 0.17% overnight to $2.1 trillion.

The meme cryptocurrency segment saw a 0.50% drop in market cap, led by declines in six out of the nine top-ranked cryptocurrencies within the top 100 overall. Dogecoin (DOGE), the highest-ranked meme cryptocurrency at 8th place, experienced a slight overnight decline of 0.21%.

In the AI & Big Data sector, market capitalization fell by 1.6% overnight due to a decline in NVIDIA’s share price, despite the company exceeding earnings and guidance expectations. This drop in NVIDIA’s stock impacted the broader tech sector and spilled over into the AI segment within the crypto market. NEAR Protocol (NEAR), ranked 19th overall and the most valuable in this category, saw its market cap decrease by over 2% in the past 24 hours.

The NFT & Collectibles category recorded a more significant overnight decline of 2.6% in market capitalization. This decline comes as OpenSea received a Wells Notice from the SEC, indicating potential enforcement action against the NFT marketplace known for facilitating buying, selling, creating, and trading NFTs. The top-ranked cryptocurrency in this category, Artificial Superintelligence Alliance (FET), plummeted by 9.6% overnight.

Bitcoin saw a marginal dip of 0.01% overnight, trading at $59,732.14, which is about 19% below its all-time high. Over the past week, BTC has lost 2.4%, reducing its year-to-date gains to 41%. In the last 24 hours, Bitcoin traded between $60,174.55 and $57,890.68.

Bitcoin Spot ETF products in the U.S. saw outflows of $105 million, down from $127 million the previous day. For the second consecutive day, Ark 21Shares Bitcoin ETF (ARKB) led these outflows, although they decreased to $59 million from Tuesday’s record outflows of $102 million. Notably, no ETF recorded net inflows on Wednesday.

Ethereum gained 0.8% in the past 24 hours to trade at $2,545.18, around 48% below its previous peak. Weekly losses stand at approximately 3.4%, while gains in 2024 are just over 11.5%. Ether traded between $2,558.80 and $2,457.87 in the past day.

Surprisingly, Ether Spot ETF products rebounded with inflows of $5.9 million compared to outflows of $3.4 million a day earlier, marking their first net inflows since August 14.

BNB (BNB), ranked 4th, saw a slight overnight decline of 0.02%, trading at $543.02. Solana (SOL), ranked 5th, dropped by 1.1% overnight to $145.48. XRP (XRP), ranked 7th, decreased by 0.82% overnight to $0.5738. Dogecoin (DOGE), ranked 8th, edged down by 0.21% to $0.1008. Toncoin (TON), ranked 9th, rallied by 1.4% overnight to $5.58. TRON (TRX), ranked 10th, increased by 0.2% to $0.1597.

Among the top 100 cryptocurrencies, Helium (HNT), ranked 57th, led with gains exceeding 10% overnight. Conversely, DOGS (DOGS), ranked 80th, was the biggest laggard with a decline of over 10%.

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