Bitcoin, Ethereum, XRP Fall Together…FOMC Will Determine Direction

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

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

According to investment media FXStreet on April 28 (local time), Bitcoin (BTC) fell below $77,000, giving back its recent upward trend, while Ethereum (ETH) and XRP (XRP, Ripple) also entered the same correction phase. The overall altcoin market is following Bitcoin's downward structure, and market sentiment is rapidly cooling.

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 are around $58 billion, and assets under management are approximately $101 billion, but there is a possibility that further outflows could intensify bearish pressure on the market.

Ethereum spot ETFs also saw an outflow of $50 million, weighing down investor sentiment. In contrast, the XRP spot ETF showed a 'stagnant' state with no fund inflows or outflows for the day. Overall, as a wait-and-see attitude deepens in the market, there is a spreading movement to reduce exposure to risk assets.

The macro environment is also a burden. Although the ceasefire in the US-Iran conflict is maintained, 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 holding back on its direction ahead of the US Federal Reserve's (Fed) interest rate decision and Chairman Jerome Powell's remarks.

Technically, the upside is blocked, and the downside is being tested. Bitcoin is holding above support levels of $75,644 and $73,492 but is 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 is facing increased downward pressure towards the $1.33 lower support zone after breaking the $1.40 support level.

*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.*