Ethereum Dips to $2.06K as ETH Stablecoin Market Share Plunges
Ethereum (ETH) price plunged to $2.06K on Wednesday as selling pressure intensified after hotter-than-expected US inflation and concerns about Federal Reserve rate hikes.
The overall crypto market pulled back, with Bitcoin down 1.53% to $73,682.62 and Ethereum down 2.81% to $2,064.95. The total crypto market cap stands at $2.44 trillion, down 1.71% over 24 hours as the bearish trend persisted.
Ethereum’s stablecoin market share has fallen to a historic low of 46%, with $32.5 billion in supply lost over the past year. Competitors like Tron and Solana captured most of this migration, suggesting a structural shift in liquidity preference toward lower-fee networks.
The latest US Bureau of Labor Statistics data reveals that both headline and core inflation exceeded market expectations in October, with core CPI rising 0.3% and overall prices increasing 0.4%.
This sustained price pressure directly challenges the prospect of a dovish pivot from the Federal Reserve. Before the release, Fed Governor Christopher Waller explicitly said a core CPI increase of 0.3% or more could justify a 50-basis-point rate hike.
For crypto investors, this macroeconomic data point significantly increases the likelihood of aggressive monetary tightening at the upcoming December FOMC meeting, which historically suppresses risk-asset valuations and limits liquidity inflows into digital assets.
Meanwhile, Standard Chartered planned to extend its prime brokerage service to Bitcoin and Ether on 24X’s platform. Eligible institutions can access crypto and foreign exchange through one execution system.
Standard Chartered acts as the central counterparty; 24X provides execution and matching. The announcement did not disclose client volumes or fees.
This is a measured positive for ETH’s institutional access because a bank-led route may make trading more familiar to eligible firms.
Driving the price down, U.S. spot Ether ETFs recorded $184.6 million in net withdrawals, their third consecutive outflow day. BlackRock’s ETHA accounted for $119.3 million. These fund flows reflect ETF demand, not overall ETH ownership or activity on the Ethereum network.
This is bearish for near-term ETF demand because withdrawals reduce buying pressure from those products. The wider picture remains mixed: institutional access is expanding, but inflows have not yet confirmed renewed fund appetite.
Also, Deutsche Bank’s custody service for German institutional and corporate clients is now live, and under BaFin/MiCA authorization it supports BTC, ETH and some stablecoins such as USDC.
The bank uses a multi-layer control mechanism to manage keys and plans to expand to Asia and launch tokenisation services in 2027.
The service aligns with its target of an 8% compound annual growth rate in corporate banking through 2028, but the initial scope is limited: it is not aimed at retail users, it does not provide deposit insurance, and trading functionality has not yet been confirmed.
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