Bitcoin and Altcoins Weaken After Fed Rate Cut
Bitcoin (BTC) is trading just above $90,000 on Thursday. The broader cryptocurrency market remains cautious. Altcoins like Ethereum (ETH) and Ripple (XRP) are also down. This happens despite the Federal Reserve cutting its benchmark lending rate on Wednesday.
The Fed lowered rates to 3.50%-3.75%. But Bitcoin fell to an intraday low of $89,389 on Thursday. Fed Chair Jerome Powell warned about inflation risks and a slow labor market. This cautious message lowered hopes for more rate cuts soon. Investors booked profits early and became more careful. The FedWatch Tool shows traders expect rates to stay steady in January.
Strong ETF Inflows in Bitcoin, Ethereum, and XRP
Bitcoin spot Exchange Traded Funds (ETFs) saw nearly $225 million in net inflows on Wednesday. BlackRock’s IBIT ETF led with about $193 million. Total ETF inflows are near $58 billion, with net assets of around $122 billion, per SoSoValue data.
Ethereum ETFs also attracted $58 million in inflows on Wednesday. Ethereum has $13.15 billion in ETF volume and $21.43 billion in net assets. These steady inflows may boost Ethereum demand into the New Year.
XRP spot ETFs gained $10 million, up slightly from the day before. Since launching on November 13, XRP ETFs have had no outflows. Total inflows amount to $954 million, with $940 million in net assets.
Market Outlook: Bitcoin Holds Key Support Level
Bitcoin stays above its $90,000 support level despite selling pressure. Important moving averages like the 50-day, 100-day, and 200-day EMAs are above current prices, showing a downtrend. The Relative Strength Index (RSI) fell to 44, signaling rising bearish momentum.
If Bitcoin closes below $90,000, sellers could push it toward $87,719. However, the Moving Average Convergence Divergence (MACD) still shows a buy signal. This could help Bitcoin rebound to resistance near $94,150 if buying strengthens.
Ethereum trades under $3,200, below key EMAs, indicating weak momentum. The RSI suggests further downside risk near $3,000, but MACD hints buyers may return if support holds.
XRP faces heavy selling pressure near $2.00 support. It remains below major moving averages that keep a bearish outlook. The RSI and MACD show little momentum, so XRP may stay weak unless it climbs above $2.24.
