Key Highlights:
- Bitcoin and Ether stabilized after heavy outflows from U.S. spot-linked ETFs caused a notable drop in prices.
- New U.S. tariffs alongside the Federal Reserve’s current interest rate stance are contributing to market fluctuations, yet a buying trend is starting to build.
- Institutional support is proving to buffer volatility, although ETF investors remain cautious, reflecting a hesitance in broader market sentiment.
Background:
Crypto markets began the week stable, with BTC achieving around $114,500 and ETH maintaining above $3,550. Following a volatile selloff triggered by ETF outflows, total outflows last Thursday and Friday approached $1 billion for Bitcoin and $152 million for Ether, breaking a long trend of inflows. Fresh tariffs imposed by President Trump across Asian and European markets have dampened investor sentiment, leading to increased selling pressure.
“The dip was driven by concerns over Trump’s tariff stance and the Fed’s signal that it’s not keen to cut rates soon. But opportunistic buyers are already stepping in before U.S. markets open, indicating the fear may be overdone,” said Jeff Mei, COO at BTSE.
The market’s recovery process continues, with XRP and Dogecoin showing notable gains and attracting buyers.
For further reading, refer to the full article on CoinDesk.
