- Cryptocurrencies Today: Bitcoin, Ethereum, and XRP Show Technical Weakness Amid Risk-Averse Sentiment
Bitcoin (BTC) remained stable above the short-term support level at $76,000 after extending its losses from its weekly high of $79,486, following the hawkish tone from the Federal Reserve (Fed) and the uncertainty surrounding the US-Iran peace negotiations.
Altcoins, including Ethereum (ETH) and Ripple (XRP), continue to lose momentum, with their prices falling below short-term demand levels. Ethereum is trading above $2,250, down from its weekly peak of $2,404, while Ripple is trading at $1.37, nearly 5% below its weekly high of $1.45.
- Markets Assess the Fed's Hawkish Tone Amid Declining Risk Appetite:
The Federal Open Market Committee (FOMC) kept interest rates unchanged for the fourth consecutive cycle at 3.50% - 3.75% on Wednesday.
The recent press conference by Federal Reserve Chair Jerome Powell was likely more significant. Powell pointed to the risks of rising inflation driven by global energy prices, with West Texas Intermediate crude surpassing $100 at the time of writing.
The main reason for the rise in oil and gas prices is the ongoing conflict in the Middle East and the uncertainty surrounding peace negotiations. Powell emphasized the need for the committee to assess the impact of energy shocks and tariffs before considering easing the current restrictive monetary policy.
In a surprising move, the former Federal Reserve Chair announced he will remain on the board as a governor after the leadership transition. He confirmed that his decision to stay aims to ensure the central bank can "conduct monetary policy without regard to political factors."
During the Wednesday press conference, Powell said: "After my term ends on May 15, I will continue to serve as a governor for a period to be determined."
The hawkish stance of the Federal Reserve appears to be impacting the cryptocurrency market, as evidenced by the Fear & Greed Index remaining at 29, near the fear zone’s lower end, down from last week’s average of 46.
Cryptocurrency Fear & Greed Index | Source: Alternative
Institutional interest in spot Bitcoin ETFs declined this week, with outflows of $263 million on Monday, $90 million on Tuesday, and about $138 million on Wednesday.
Total inflows now amount to $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 experienced their third consecutive day of outflows on Wednesday, totaling $88 million. Data from SoSoValue shows investors withdrew nearly $50 million on Monday and about $22 million on Tuesday. Total inflows stand at $11.94 billion, with assets under management at $13.10 billion.
Ethereum ETF Flows | Source: SoSoValue
Meanwhile, XRP spot ETFs saw modest inflows of $3.59 million on Wednesday, compared to $2.20 million on Tuesday. Total inflows now reach $1.30 billion, with an average net assets under management of $1.04 billion.
XRP ETF Flows | Source: SoSoValue
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##FedHoldsRateButDividesDeepen #I
