Bitcoin maintains its stability above $92,000 thanks to index funds
At the time of writing this report, Bitcoin (BTC) is maintaining its stability above the $92,000 level, supported by significant inflows of money into exchange-traded funds (ETFs), which have proven to be key factors contributing to the support of the digital currency's price. Expectations regarding interest rate cuts by the U.S. Federal Reserve also contribute to creating optimism within the market, enhancing the likelihood of further increases in the short term.
However, despite this relative stability, markets have experienced slight fluctuations due to global economic pressures that have affected financial markets in general. After Bitcoin reached $94,588 the previous day, economic uncertainty has been the main factor preventing Bitcoin from maintaining this rise for long, leading to a slight decline.
Ethereum boosts bullish momentum amid strong financial inflows
As for Ethereum (ETH), the currency has entered a phase of relative stability at $3,300, with the MACD indicator showing positive signals confirming the potential for Ethereum to enter an upward trend. The Relative Strength Index (RSI) also indicates the possibility of raising the price towards $3,513 if the bullish momentum continues.
Additionally, Ethereum exchange-traded funds have recorded a significant influx of funds over the past two days, reflecting growing interest from institutions. Nevertheless, the 200-day exponential moving average at $3,456 may pose an obstacle to any sharp upward movements.
Ripple under pressure: Will support hold at $2.00?
While Bitcoin and Ethereum continue to show stability and growth, Ripple (XRP) is facing significant pressure. Sellers are attempting to break the important support level at $2.00, reflecting a state of continuous decline in the currency's price. Despite limited money flows into Ripple's exchange-traded funds, selling pressure continues to impact its performance.
If buyers cannot push the price above the 50-day exponential moving average at $2.26, the currency may slide towards the next support levels at $1.98 - $1.82. There may be further pressure on Ripple if the Relative Strength Index (RSI) continues to decline, currently in the negative territory at 44.
The impact of the Federal Reserve's decisions on markets: Are we witnessing significant fluctuations?
Markets are closely watching the U.S. Federal Reserve's announcement on monetary policy, where a 25 basis point rate cut is expected. The FedWatch tool indicates an 87.6% probability of a rate cut at the upcoming meeting, which could provide a strong impetus for financial markets to recover.
However, the official statement that will be issued after the meeting, along with the press conference to be held by Jerome Powell, the chair of the board, will be a pivotal point, as investors look for any signals regarding the future direction of the central bank's monetary policy. Statements regarding future trends could significantly influence financial markets over the coming weeks, including cryptocurrency markets.
Money flows into exchange-traded funds: promising trends
Data indicates that Bitcoin exchange-traded funds have witnessed strong financial inflows, with BlackRock's IBIT fund attracting about $199 million on Tuesday, while Grayscale's BTC fund recorded $34 million on the same day. This shows that Bitcoin is gaining increased acceptance in traditional financial markets.
Regarding Ethereum, it has seen massive financial inflows totaling $178 million, with Fidelity's FETH fund leading in this area, attracting $51 million. In contrast, Ripple has seen continuous inflows over the past 17 days, with $9 million recorded on Tuesday, indicating growing institutional interest in its exchange-traded funds.
Conclusion: future expectations
Bitcoin continues to maintain its stability above $92,000, while Ethereum faces the possibility of entering a new bullish phase. For Ripple, under its current pressures, the biggest challenge is maintaining support at $2.00. Nevertheless, the Federal Reserve's decision remains the main factor that will influence market movements in the short and medium term.
