of Bitcoin and Ethereum prices The cryptocurrency market has failed to record the “Santa Rally” like other major assets and is crashing again. This comes as BTC and ETH continue to face significant selling pressure from crypto ETFs facing sustained outflows.
Why Bitcoin and Ethereum prices are plummeting
Bitcoin and Ethereum prices are falling again due to selling pressure from BTC and ETH ETFs. According to arkham dataBlackRock deposited 2,292 BTC ($200 million) and 9,976 ETH ($29 million) into Coinbase yesterday and may sell these coins. This week, the world's largest asset management company BTC and ETH Send these coins to Coinbase for offloading.
According to further data from Arkham, BlackRock deposited 2,838.78 Bitcoin ($255 million) and 29,928 Ethereum ($91.29 million) into Coinbase on December 22nd. Crypto ETF Significant outflows continue to be recorded. The BTC ETF has net outflows of $330 million this week, and the ETH ETF has net outflows of $11 million for the week.
This indicates that institutional investor interest in Bitcoin and Ethereum is waning at the moment, giving a bearish outlook for the largest crypto assets by market capitalization. a coin share report A report released earlier this week revealed that Bitcoin ETFs saw $460 million in outflows last week, while Ethereum ETPs saw $555 million in outflows.
From a macro perspective, the prices of Bitcoin and Ethereum also continue to fall as it seems unlikely that the Fed will cut interest rates at the January FOMC meeting. recent US GDP And the odds that the Fed will keep interest rates unchanged next month have soared following reports on jobless claims.
Bear market risk is becoming more important
a CryptoQuant analysis Based on the Bitcoin Composite Market Index (BCMI), we revealed that bear market risk is increasingly relevant. Although BCMI is currently below equilibrium, it is said to be well above its historical low zone. This suggests that there is still room BTC price to fall to the bottom.
CryptoQuant's analysis shows that from a data-driven perspective, this bearish period It's not just about experiencing setbacks. If history repeats itself, we expect BTC to form a more durable bottom if BCMI returns to 2019-2023 levels. The analysis added that this is a scenario worth considering, as at this stage the market appears to be in a downward transition rather than a complete reset.
Related article: Key Ethereum indicators hit new all-time highs – can price regain $3,000?
At the time of writing, the price of Bitcoin was trading around $87,700 and had fallen over the past 24 hours. data From CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com
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