Bitcoin briefly touched $105,000 on Wednesday morning before collapsing completely once U.S. markets opened. It fell by 4% in just a few hours, crash return below $100,000. Ethereum was crushed even more, falling almost 5% $3,200while Solana and XRP both tanked hard.
This trend of overnight gains fading during US trading hours has been happening for weeks now. THE Coinbase Premiumwhich tracks the price difference between Coinbase and Binancehas been negative since the end of October. This essentially means that US investors are not buying; either they sell or they stay away.
This is the longest period of negative Coinbase Premium since March-April, when Bitcoin fell from over $100,000 to $75,000. That’s not exactly the kind of comparison bulls want to hear right now.
Crypto stocks were also destroyed. Circle fell 9.5% after profits, while miners like Bitfarms, Bitdeer and IREN all fell 5-10%. The whole sector is bleeding.
THE Fed the situation doesn’t help either. What everyone thought would be a sharp rate cut in December turned into total chaos at the central bank. Policymakers are divided between concerns about inflation and concerns about the weakening of the labor market.
Since the October Fed meeting, Bitcoin ETFs have seen outflows of over $1.8 billion. That tells you everything about America’s institutional appetite right now; it’s practically non-existent.
Conclusion
Overall, US traders are dragging crypto down, institutions are pulling back, and Fed uncertainty is killing sentiment, leaving Bitcoin and the market as a whole stuck in a strong sentiment-driven downturn.
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