that Bitcoin and Ethereum prices The cryptocurrency market is falling again as it failed to record a ‘Santa rally’ like other major assets. This is as BTC and ETH continue to face significant selling pressure from cryptocurrency ETFs, which are facing ongoing outflows.
Why Bitcoin and Ethereum prices are plummeting
Bitcoin and Ethereum prices fell again due to selling pressure from the BTC and ETH ETFs. According to arkham dataBlackRock deposited 2,292 BTC ($200 million) and 9,976 ETH ($29 million) into Coinbase yesterday and will likely sell these coins. This is the second letter sent this week by the world’s largest asset manager. BTC and ETH To Coinbase to offload these coins.
Additional data from Arkham shows that BlackRock deposited 2,838.78 Bitcoin ($255 million) and 29,928 Ethereum ($91.29 million) into Coinbase on December 22. Cryptocurrency ETF We continue to see significant outflows. The BTC ETF had total net outflows of $330 million this week, while the ETH ETF had net outflows of $11 million for the week.
This indicates that institutional interest in Bitcoin and Ethereum is currently waning, giving us a bearish outlook for the largest crypto assets by market capitalization. no way CoinShares Report Bitcoin ETFs saw outflows of $460 million last week, while Ethereum ETPs saw outflows of $555 million, according to data released earlier this week.
From a macro perspective, Bitcoin and Ethereum prices also continued to fall as the Federal Reserve appears unlikely to cut interest rates at the January FOMC meeting. recent US GDP The jobless claims report has triggered the possibility that the Federal Reserve will keep interest rates steady next month.
Downside risks are becoming more important
no way CryptoQuant Analysis Based on the Bitcoin Combined Market Index (BCMI), it was stated that bearish market risk is becoming more important. BCMI is currently known to be below equilibrium but well above historical bottoms. This suggests that there is still room for more. BTC price Let it fall downward.
According to CryptoQuant analysis, from a data-driven perspective, this opens up the possibility for Bitcoin to transition to: bearish You’re not just experiencing a downturn. If history repeats itself, BTC is expected to form a more durable bottom when BCMI revisits 2019 to 2023 levels. At this stage, the market appears to be in a downward transition rather than a complete reset, so it is a scenario worth considering.
Related Reading: Key Ethereum Indicators Hit All-Time Highs. Can the price recover $3,000?
At the time of this writing, Bitcoin price is said to be trading around $87,700 over the past 24 hours. data From CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com
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