The crypto market has dropped by 0.84%, now valued at $2.29 trillion, mainly due to institutional selling. Ethereum faces ongoing corrections after failing to surpass crucial resistance at $2,150. XRP continues its downward slide, encountering resistance at its lower trendline.
Bitcoin, Ethereum, and XRP have all experienced significant declines, with BTC down by over 5%, ETH by 6%, and XRP by 4% this week. The bearish trend persists, and these cryptocurrencies remain under pressure as their prices continue to weaken.
Why Crypto Market Is Facing Difficulties in Recovery?
The crypto market is currently facing significant challenges, driven by a combination of institutional selling pressure, fear sentiment, and leveraged liquidations. Major outflows from exchange-traded funds (ETFs) have raised concerns, with Bitcoin spot ETFs alone seeing a net outflow of $410 million on February 12.
Ethereum ETFs also recorded substantial outflows, amounting to $113 million. Meanwhile, BlackRock, one of the largest institutional investors, transferred $227 million in Bitcoin and $29.5 million in Ethereum to Coinbase, signaling possible sell-side pressure.
This wave of selling is compounded by heightened market anxiety, with the CMC Fear & Greed Index showing extreme fear (index 8), reflecting widespread caution among investors. Adding to the turmoil. Over $3.6 trillion was wiped off the market in just 90 minutes, as gold and silver saw declines.
The liquidation of leveraged long positions has exacerbated the downward pressure, with Bitcoin alone seeing $105.26 million in liquidations within 24 hours. The market’s near-term outlook depends largely on the upcoming U.S. Consumer Price Index (CPI) data.
A hotter-than-expected CPI report could spur further selling, driven by concerns over inflation and the Federal Reserve’s interest rate decisions.
With no signs of fresh institutional demand and major players opting for risk reduction, the crypto market remains under significant pressure. Investors are closely watching the CPI data, which could determine the future trajectory of crypto prices in the short term.
Bitcoin, Ethereum, XRP Price Prediction as Market Faces Pressure
Bitcoin price has dropped by 0.61% over the past 24 hours, now trading at $67,308. If it holds above the key support of $65,000, there’s potential for a rebound toward the $70,000 resistance.
However, a break below this support could lead to a decline toward $60,000. Bitcoin was rejected at the $70,000 mark on Sunday and experienced four straight days of losses, falling 5.5% by Thursday. The risk of a government shutdown adds to the overall market uncertainty.
Ethereum (ETH) is down 0.51%, currently priced at $1,969.21. If it holds above the $1,950 support level, a bounce back to $2,000 could be on the cards. A drop below this support would risk a return to the $1,700 low.
XRP also saw a 1.18% decline to $1.37. If it stays above $1.37, it could consolidate, but a break beneath this level may lead to a drop toward $1.10.
Source: https://coingape.com/trending/heres-why-is-crypto-market-is-struggling-to-recover-feb-13/
