Bitcoin, Ethereum and XRP are trading lower today as crypto markets react to strong U.S. economic data and selling pressure from crypto investment funds. BTC is around $87,000, ETH under $3,000, and XRP near $1.88, with Dogecoin, Solana and Cardano also trading lower. U.S. government data showed the economy grew at an annual rate of 4.3% in the third quarter, well above the 3.3% expected by markets. While the pace signals a healthy economy, it has contributed to short-term pressure on risk assets, including cryptocurrencies.
Historically, strong GDP readings have often triggered brief pullbacks in Bitcoin, typically around 4% to 5%. Market observers note that the last three GDP releases followed a similar pattern, with Bitcoin dipping briefly before moving higher again. Crypto sentiment remains weak, with the Fear and Greed Index at 29 and the RSI near oversold levels, signaling heavy selling in recent sessions. ETF outflows have added to the declines, with crypto funds recording $952 million in net outflows last week, led by Ethereum and Bitcoin funds with $555 million and $460 million respectively.
Solana and XRP attracted inflows of $48.5 million and $62.9 million, signaling selective interest among certain altcoins. Analysts say the bigger picture remains positive, as a strong U.S. economy reduces recession risks and past cycles show crypto recovering after periods of growth. Leverage in the market is unwinding as prices fall, contributing to volatility.
Leave a Reply