Crypto Prices Today 25 February 2024: Bitcoin and Ethereum Crawling Up

Overall, the crypto market appears to be experiencing a decline after experiencing significant price appreciation, especially in Bitcoin. This indicates potential selling pressure from market players trying to take advantage, with the possibility of higher volatility in the future.

Tokocrypto trader, Fyqieh Fachrur, said that this potential volatility comes along with several negative sentiments that could push the majority of crypto assets to decline.

“Currently, the crypto market is faced with two negative sentiments which are likely to push the majority of risk assets down,” said Fyqieh to Liputan6.com, quoted on Sunday (25/2/2024).

First, the news about the results of the FOMC minutes has influenced the movement of the US Dollar and directly affected crypto because of its negative correlation.

Fyqieh explained that many analysts currently assume that news from the FOMC will increase the value of the US Dollar again, which will likely push the majority of risk assets to decline.

Currently, attention to the FOMC is still focused on inflation which continues to rise. However, the FOMC has a track record of encouraging risk asset prices to decline, so it is likely that current conditions were influenced by the publication of the announcement.

Apart from that, the Fed continues to give signals that it will delay reducing interest rates. Fed Vice Chairman Philip Jefferson said on Thursday he was still considering lowering interest rates later this year.

This statement comes just a day after the FOMC meeting minutes showed a similar stance. The minutes of the meeting also suggested that the Fed should proceed with a cautious rate cut, reinforcing the idea that rates will remain high for a longer period of time.

“This attitude is supported by the country's economic data which turned out to be better than expected,” explained Fyqieh.

The second sentiment comes from Bitcoin ETF outflow data. On February 21, the BTC ETF recorded a net outflow of USD 35.6 million or equivalent to IDR 555.2 billion assuming an exchange rate of IDR 15,598 per US dollar), which may be a profit-taking action by investors.

This was the first negative reading since January 25, following 17 consecutive days of net inflows, largely led by BlackRock and Fidelity.