- Cryptocurrency Today: Bitcoin, Ethereum, and XRP Show Technical Weakness Amid Risk-Avoidance Sentiment
Bitcoin (BTC) held steady above the short-term support level at $76,000 after widening its losses from its weekly high of $79,486, following the hawkish tone from the Federal Reserve (Fed) and uncertainty surrounding peace talks between the United States and Iran.
Alternative coins, including Ethereum (ETH) and Ripple (XRP), continued to lose momentum, with their prices falling below short-term demand levels. Ethereum’s price hovered above $2,250, down from its weekly peak of $2,404, while Ripple traded at $1.37, down nearly 5% from its weekly high of $1.45.
- Markets Assess the Fed’s Hawkish Tone Amid a Decline in Risk Appetite:
The Federal Open Market Committee of the Federal Reserve kept interest rates unchanged for the fourth consecutive cycle in the 3.50% - 3.75% range on Wednesday.
The most recent press conference by Federal Reserve Chair Jerome Powell was likely more significant. In his remarks, Powell pointed to risks of higher inflation driven by global energy prices, with West Texas Intermediate crude surpassing $100 at the time of writing.
The main reason oil and gas prices have risen is the ongoing conflict in the Middle East and the uncertainty surrounding peace negotiations. Powell emphasized that the committee must assess the impact of both energy-related shocks and tariffs before considering easing the current restrictive monetary policy.
In a surprising move, the outgoing head of the Federal Reserve announced that he will remain in office as governor after the anticipated leadership transition. He confirmed that his decision to stay on the board aims to ensure the central bank can “conduct monetary policy without regard to political factors.”
Powell said during the Wednesday press conference: “After my presidential term ends on May 15, I will continue to serve as a governor for a period to be determined later.”
The impact of the Fed’s hawkish stance appears to be affecting the cryptocurrency market, as shown by the Fear and Greed Index remaining at 29, near the lower bound of the fear zone, down from last week’s average of 46.
Crypto Fear & Greed Index | Source: Alternative
Institutional interest in spot Bitcoin exchange-traded funds (ETFs) declined this week, with outflows of $263 million on Monday, $90 million on Tuesday, and about $138 million on Wednesday.
Total cumulative inflows have now reached $58.07 billion, with an average net assets under management of $99.27 billion, according to SoSoValue.
Bitcoin ETF Inflows | Source: SoSoValue
Spot Ethereum ETFs saw the third consecutive day of outflows on Wednesday, totaling $88 million. SoSoValue data shows that investors withdrew nearly $50 million on Monday and about $22 million on Tuesday. Total inflows amounted to $11.94 billion, while assets under management were $13.10 billion.
Ethereum ETF Inflows | Source: SoSoValue
Meanwhile, spot XRP ETFs recorded modest net inflows of $3.59 million on Wednesday, compared with $2.20 million recorded on Tuesday. Total inflows are now $1.30 billion, with an average net assets under management of $1.04 billion.
XRP ETF Inflows | Source: SoSoValue$BTC $ETH $XRP
