The cryptocurrency market is feeling the heat as Bitcoin, a pioneering cryptocurrency, is under increasing selling pressure as changes and shifting economic data & sentiment continue to push back growth. In the past 24 hours, Bitcoin has dropped nearly 7% after reaching a three-week high. Ethereum closely follows, experiencing a nearly 10% drop.

Bitcoin Faces Strong Selling Pressure

Binance, the largest cryptocurrency trading platform by volume, has shown a strong increase in Bitcoin selling. According to Cryptoquant analyst Darkfost, Binance's hourly net trading volume, a key indicator of market sentiment, has shifted to a significant negative level, reaching $325 million, the highest recorded in 2025.

This decline comes after disappointing economic reports from the United States, including PMI data and weaker-than-expected job numbers.

These reports make risk assets like Bitcoin less attractive, leading to higher sell-off conditions. While some worry this may signal a long-term bearish trend, others believe this is just a short-term reaction.

Ethereum Witnesses First Major Price Drop of the Year

Meanwhile, Ethereum is also not escaping pressure, recording its first major price drop of 2025. The decline comes amid rising expectations that the Federal Reserve may skip the anticipated interest rate cut in the upcoming meeting on January 29.

Although Ethereum investors are not panicking, the inflow of ETH into exchanges has seen an outflow of $86 million.

Despite this, some positive signs are emerging, such as Coinbase, another leading exchange, witnessing buying momentum, potentially supported by strong ETF data earlier in the week. If this trend continues, Ethereum may recover.

What Will Happen Next in the Cryptocurrency Market?

While Bitcoin and Ethereum face pressure, there is still hope for recovery if ETF inflows and buying demand increase. Currently, experts advise caution, especially with upcoming events like Trump's inauguration adding to market uncertainty.

Currently, the price of Bitcoin has decreased by 6.5%, trading at $95,433, indicating a 6.5% drop in the last 24 hours. This has also caused its market capitalization to fall to $1.89 trillion. Similarly, Ethereum (ETH) has also decreased in price, now at $3,339, marking a 9% drop in the last 24 hours.

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