Bitcoin, Ethereum, XRP Fall Together… FOMC to Set the Direction

▲ Bitcoin (BTC), Ethereum (ETH), XRP (XRP)/ChatGPT generated image ©

Bitcoin, Ethereum, and XRP have all turned bearish, leading to a renewed 'risk-off' sentiment spreading across the market.

According to investment media FXStreet on April 28 (local time), Bitcoin (BTC) fell below $77,000, giving back its recent gains, and Ethereum (ETH) and XRP (Ripple) also entered the same correction phase. As altcoins broadly followed Bitcoin's downward trend, market sentiment rapidly cooled.

The biggest variable is ETF fund flows. Bitcoin spot ETFs recorded a net outflow of approximately $263 million on Monday alone, breaking a nine-day streak of net inflows. Cumulative net inflows stand at about $58 billion, and assets under management are around $101 billion, but if further outflows continue, there is a possibility that downward pressure on the market will intensify.

Ethereum spot ETFs also saw an outflow of $50 million, weighing down investor sentiment. In contrast, XRP spot ETFs showed a 'stagnant' state with no fund inflows or outflows during the day. As a wait-and-see attitude deepened across the market, there was a widespread movement to reduce exposure to risky assets.

The macro environment is also a burden. While a ceasefire is maintained amidst the US-Iran conflict, the possibility of a diplomatic resolution remains unclear. Additionally, the Fear & Greed Index plummeted from 47 to 33 the previous day, pushing investor sentiment back into the 'fear' zone. The market is also reserving its direction ahead of the US Federal Reserve (Fed)'s interest rate decision and Chairman Jerome Powell's remarks.

Technically, the upside is capped, and the downside is being tested. Bitcoin is holding above its support levels of $75,644 and $73,492 but remains trapped below the long-term resistance of $82,427. Ethereum is showing a bearish trend below $2,300, increasing the likelihood of testing the $2,243 support level, and XRP, after breaking the $1.40 support, is facing increased downward pressure towards the lower support zone of $1.33.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*