Why are Bitcoin, Ethereum, and XRP’s prices down? ETF flows, Fed rates, and more…
The cryptocurrency market lost $120 billion this week, reversing January's recovery. Bitcoin's price dropped from $94,500 to $90,000, driven by $729 million in outflows from U.S. spot ETFs over two days. Market sentiment was dampened by rising expectations of a Fed rate pause, now at 86.7% probability. Key economic data in January may further influence risk asset sentiment.
Altcoins declined more sharply than Bitcoin. XRP fell 14%, erasing nearly half its January gains, with key support at $2. If broken, it could drop to $1.80. Ethereum dropped 6% to $3,000, hovering near a symmetric triangle pattern. A bullish breakout could target $3,600, while a drop below $2,900 may lead to further declines. Despite the pullback, the altcoin season index improved from 25 to a neutral 57, indicating underlying strength. Institutional demand pause and Fed policy concerns drove the mid-week correction, though key support levels may help stabilize prices.
ambcrypto01/09 05:02