Bitcoin falls below $88,000... Market adopts a wait-and-see attitude ahead of the Fed's statement.
Ahead of the Federal Reserve's benchmark interest rate decision, the cryptocurrency market adopted a wait-and-see approach, with the price of Bitcoin falling below $88,000.
On the morning of the 28th local time, according to data from cryptocurrency market website CoinGecko, Bitcoin was trading at approximately $87,640, showing little fluctuation compared to 24 hours prior. It was down 3.5% on a weekly basis, failing to recover the $90,000 mark. Ethereum also fell 0.5% from the previous day, trading around $2,920, continuing to struggle to break through $3,000.
Investor sentiment is shrinking... ETF inflows have also stagnated.
Investor sentiment in the cryptocurrency market remains weak. The "Cryptocurrency Fear & Greed Index" remains in the "fear" range. Analysis firm Glassnode notes, "Institutional demand remains weak, and the 30-day net inflow trend for Bitcoin and Ethereum spot ETFs is still negative."
Glassnode commented, "Spot trading volume remained stable, but failed to support the formation of a regular trend." This suggests that investor confidence in "risky assets" has weakened.
Hyperliquid surged 22%... Pump also rose 17%.
Among individual cryptocurrencies, Hyperliquid's token HYPE stands out. It surged 22.6% in the past 24 hours, leading the market. This strong performance appears to stem from the fact that the Hyperliquid ecosystem's physical asset platform, TradeXYZ, has surpassed $10 billion in daily trading volume, with open interest reaching a record high of $790 million.
Pump.fun, the Meme coin issuing platform, saw its PUMP token rise by over 17%. On the other hand, River, which had risen the previous day, plummeted by approximately 29% in a single day, exhibiting extreme volatility. Polygon's POL token fell by 5%.
The scale of liquidations remained relatively stable. According to Coinglass data, approximately $200 million in leveraged positions were liquidated in the past 24 hours. The proportions of short and long positions were roughly equal. TradeXYZ's silver futures contracts were particularly affected, with over $42.63 million liquidated, particularly due to the decline in precious metal prices.
Ethereum spot ETFs saw inflows exceeding those of Bitcoin ETFs.
Meanwhile, unusual flows have emerged in the spot ETF market. According to data from cryptocurrency analytics platform SosoValue, on the 26th alone, the Ethereum spot ETF recorded a net inflow of $117 million, bringing its total net asset value to $176.2 billion. On the same day, however, the Bitcoin spot ETF saw inflows of only $6.84 million, with total net assets of $113.5 billion.
The anticipation surrounding the Fed's statement... interest rates are expected to remain unchanged.
Market attention is focused on the Federal Reserve's benchmark interest rate decision, due on Wednesday. According to CNBC, the market widely expects the Fed to keep rates unchanged at the current level of 3.5-3.75%. Given that interest rates and policy direction could cause significant volatility in traditional asset markets, including cryptocurrencies, a wait-and-see approach is likely to continue in the short term.
Amidst macroeconomic uncertainty and shrinking demand from institutional investors, the rebound momentum of major cryptocurrencies such as Bitcoin appears limited. The market is expected to react more sensitively to the Federal Reserve's stance and changes in the macroeconomic environment.
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TP AI Precautions
This article uses a language model based on TokenPost.ai for article summarization. The main content may be omitted or may not be factual.
