Cryptocurrency Market Under Pressure: Bitcoin and Ethereum Experience Significant Drops
The cryptocurrency market is facing increased selling pressure, with Bitcoin (BTC) and Ethereum (ETH) experiencing significant price drops over the last 24 hours. This downturn is attributed to shifting market sentiment and disappointing microeconomic data.
Whales Accumulate Bitcoin
Despite the market downturn, some investors are taking advantage of the lower prices to accumulate Bitcoin. According to on-chain data, whales have been actively buying Bitcoin, which could potentially lead to a price rebound.
Bitcoin Faces Strong Selling Pressure
Binance, the largest cryptocurrency trading platform by volume, has seen a sharp rise in Bitcoin selling. The hourly Net Taker Volume, a key indicator of market sentiment, turned significantly negative, hitting $325 million, the highest recorded in 2025. This drop is largely attributed to disappointing U.S. economic reports, including weaker-than-expected PMI and job openings data.
Ethereum Sees Its First Big Drop of the Year
Ethereum has also experienced a significant price drop, recording its first major decline in 2025. The price dip comes amid rising expectations that the Federal Reserve might skip an anticipated rate cut in its upcoming January 29 meeting. Despite this, some positive signs are emerging, with Coinbase, another leading exchange, seeing buying momentum, likely supported by strong ETF data earlier in the week.
Market Outlook
While the current market downturn may seem alarming, experts advise caution and suggest that a potential recovery is possible if ETF inflows and buying interest rise. The upcoming events, including Trump’s inauguration, add uncertainty to the market, making it essential for investors to remain vigilant.
Current Market Prices
As of now, Bitcoin’s price has dropped by 6.5%, trading at $95,433, showing a 6.5% decrease over the last 24 hours. This has also caused its market cap to fall to $1.89 trillion. Similarly, Ethereum (ETH) has experienced a decline, with its price now at $3,339, marking a 9% drop in the last 24 hours.
Conclusion
In conclusion, the cryptocurrency market is facing increased selling pressure, with Bitcoin and Ethereum experiencing significant price drops. While the current market downturn may seem alarming, experts advise caution and suggest that a potential recovery is possible if ETF inflows and buying interest rise. Investors should remain vigilant and monitor market developments closely.
Source: Coinpedia.org
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