Crypto expert Crypto Wimar has discussed the recent decline in Bitcoin, Ethereum, and XRP prices, citing persistent selling pressure. The crypto market also faces potential further declines due to macroeconomic factors, such as the upcoming interest rate hike in Japan.
Reasons Behind The Crash in Bitcoin, Ethereum, And XRP Prices
In an X post, Crypto Wimar shared that Wintermute has offloaded 40% of its holdings over the past three weeks, contributing to the drop in Bitcoin, Ethereum, and XRP prices. The crypto analyst further noted that the market maker continues to sell millions in BTC and ETH on Binance, which could lead to additional price declines.
Related Insights
The decline in Bitcoin, Ethereum, and XRP prices is also occurring as investors prepare for a Japan interest rate hike from the BOJ during their meeting on December 19. Polymarket data indicates a 97.4% chance of a 25 basis points rate increase. Such a rate hike influences the crypto market, prompting investors to sell assets ahead of a stronger yen, which would increase their debt costs.
Additionally, it is essential to note that Bitcoin, Ethereum, and XRP have seen price drops after each Fed rate cut this year. A similar trend is following last week’s 25 basis points Fed cut, despite a notable rebound in these assets leading up to the decision, suggesting the cut was already priced in.
Interest in Bitcoin, Ethereum, and XRP seems to be declining, even among institutional investors. Crypto analytics platform CryptoQuant reported that Bitcoin treasury growth is slowing down, despite 117 new companies adding BTC to their treasuries this year. The only notable exception is BitMine, which continues to accumulate ETH rapidly amid the current market downturn.
BTC Likely to Fall Below $50,000
Crypto analyst Titan of Crypto has suggested that Bitcoin’s price could potentially drop below $50,000, which would also affect Ethereum and XRP prices. In an X post, the analyst highlighted the possibility of a BTC bear pennant formation.
Related Insights
He remarked that this is not a pattern investors generally wish to see in a bull market. Titan of Crypto indicated that this pattern is still evolving, but it’s one to watch carefully.
Additionally, the analyst’s chart indicated that Bitcoin could fall below $50,000 as early as February next year. Notably, veteran trader Peter Brandt also previously predicted that BTC might decline below $50,000, convinced that the leading cryptocurrency is already in a bear market.
Featured image from Getty Images, chart from Tradingview.com
