## Cryptocurrency Market Faces Decline Amid Rising Bond Yields and Geopolitical Tensions

### Market Overview

The prices of leading cryptocurrencies have experienced a decline over the past 24 hours, influenced by a surge in bond yields and escalating geopolitical tensions in the Middle East. Additionally, a significant rise in crude oil prices has further dampened market sentiment.

### Bond Yields Impact

Yields on government bonds have increased, raising the opportunity cost of holding cryptocurrencies, which are generally non-interest bearing. Specifically, ten-year U.S. Treasury yields rose by more than 0.5%, while yields on five-year and two-year Treasuries spiked around 0.4%. Even the longer-term 30-year U.S. Treasuries saw an overnight yield increase of 0.2%.

### Cryptocurrency Market Capitalization

Amid this financial landscape, the overall cryptocurrency market capitalization has decreased by 1.7% overnight, settling at $2.2 trillion. None of the top 10 non-stablecoin cryptocurrencies are trading in positive territory over the past 24 hours. Seven of the top 10 have maintained weekly gains, whereas three are showing losses on a year-to-date basis.

### Major Cryptocurrencies Performance

**Bitcoin (BTC):**
Bitcoin slipped 1.4% overnight, trading at $62,845.11, which is about 15% below its all-time high. Over the past week, BTC has gained 3.2% and has accumulated more than 48% gains in 2024. In the last 24 hours, Bitcoin traded between $64,043.99 and $62,685.82.

Data from Farside Investors on Bitcoin Spot ETF products in the U.S. showed a net inflow of $202.6 million on Monday, compared to $252 million on Friday. The iShares Bitcoin Trust (IBIT) led with inflows of $224.1 million.

**Ethereum (ETH):**
Ethereum dropped by 1.8% in the past 24 hours, trading at $2,687.31, roughly 45% below its previous peak. Weekly gains stand at approximately 0.90%, while gains for 2024 have decreased to 17.7%. Ether traded between $2,748.81 and $2,668.89 over the last 24 hours.

Farside Investors data on Ethereum Spot ETF products in the U.S. revealed a net outflow of $13.2 million on Monday, compared to an outflow of $5.7 million on Friday. No ETFs recorded net inflows on Monday, with Grayscale Ethereum Trust (ETHE) showing net outflows of $9.5 million.

### Other Notable Cryptocurrencies

**BNB (BNB):**
Ranked 4th, BNB shed 1.5% overnight to trade at $554.53.

**Solana (SOL):**
Ranked 5th, Solana lost 1.8% overnight to trade at $156.85.

**XRP (XRP):**
Ranked 7th, XRP recorded an overnight decline of 1.4%, trading at $0.5899.

**Dogecoin (DOGE), TRON (TRX), Toncoin (TON):**
Ranked 8th, 9th, and 10th respectively, all erased more than 3% in the past 24 hours.

### Gainers and Losers

**Helium (HNT) and Akash Network (AKT):**
Ranked 59th and 83rd respectively, both recorded overnight gains exceeding 10%. Helium, a blockchain-based network for the Internet of Things (IoT), added 30% over the last month due to reports of two large U.S. carriers attempting to offload their traffic onto the Helium MOBILE Network. Akash Network, an AI-focused cryptocurrency, gained close to 17% over the past week, buoyed by anticipation ahead of NVIDIA’s earnings update on Wednesday.

**DOGS (DOGS):**
Ranked 96th and native to Telegram as a meme coin, DOGS experienced a steep decline of 19%. With eight out of nine meme cryptos ranked among the top 100 recording overnight declines, the meme category’s market capitalization fell by 2.3%.

### Digital Asset Investment Products

Firm rate cut hints by Fed Chair Jerome Powell at the Jackson Hole economic symposium spurred inflows into digital asset investment products. CoinShares’ Digital Asset Fund Flows Weekly report showed inflows of $533 million for the week ending August 24, up from $30 million the previous week. Year-to-date flows increased to $22.7 billion.

### Breakdown by Asset Class

**Bitcoin-Based Products:**
Bitcoin products topped with inflows of $543 million.

**Multi-Asset Products:**
Received inflows exceeding $20 million.

**Ethereum-Based Products:**
Recorded outflows exceeding $35 million.

### Assets Under Management (AUM)

Close to 80% of the cumulative AUM of $89.4 billion is attributed to Bitcoin products, accounting for an AUM of $71.4 billion. Bitcoin’s market dominance stands at around 56%. Ethereum products hold an AUM of $11.2 billion, while multi-asset portfolios command assets under management of $4.3 billion. Solana-based products have an AUM of $1.2 billion, and Binance-based products hold $580 million.

### Provider-Wise Analysis

Inflows were led by iShares ETF with $346 million, followed by Fidelity ETF at $88 million and Ark 21 Shares ETF at $84 million. ProShares ETF also recorded inflows of $38 million, while Grayscale Investments saw outflows of $189 million.

iShares ETF tops with a cumulative AUM of $23.4 billion, representing a share of 26.2%. Despite year-to-date outflows exceeding $18.9 billion, Grayscale Investments still accounts for an AUM of $21.6 billion or 24.2% of the cumulative AUM of $89.4 billion. Fidelity commands an AUM of $11.4 billion, followed by 21Shares with assets under management totaling $3.1 billion. The top three—iShares, Grayscale Investments, and Fidelity—account for more than 63% of total AUM.

### Country-Wise Analysis

Weekly inflows to the United States amounted to $498 million. Hong Kong saw inflows close to $16 million, followed by Switzerland with around $13.9 million and Brazil with $8 million. Germany recorded outflows close to $9 million.

Of the cumulative AUM of $89.4 billion, $68 billion or 76% is held in the United States. Switzerland follows with an AUM exceeding $4.6 billion, while Canada accounts for an AUM of $4.4 billion. Germany holds an AUM of $3.7 billion, followed by Sweden with an AUM of $2.9 billion.

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