Bitcoin ETFs Stabilize Amid Price Volatility

In the United States, Bitcoin exchange-traded funds (ETFs) are amassing substantial assets even as the cryptocurrency’s value hovers around $90,000. According to data from Glassnode, these ETFs have created a notable support level in the market landscape since the previous year. In particular, two significant market corrections from March to August 2024 and January to April 2025 saw Bitcoin prices dip to this support level before bouncing back. Despite negative net weekly ETF inflows during these phases, the price support remained resilient.

Are ETF Buying Trends Shifting Again?

Currently, a familiar pattern is recurring in the market. Bitcoin has dropped 28% from its October peak of $126,000, closing in on the ETF price support near $83,000. Since December began, net outflows from ETFs have been noted, while Bitcoin’s price settled around $90,000 after a 1.3% daily decline. It has shown a considerable rebound from the low of $84,600 recorded on December 2.

In the meantime, U.S. ETF offerings currently hold $117.6 billion in Bitcoin, representing about 6.55% of its total supply. This underlying demand suggests that the price might again stabilize near the $83,000 level.

How Might the Federal Reserve’s Approach Influence the Crypto Sector?

Attention is now on the imminent Federal Open Market Committee (FOMC) meeting. Current data from CME FedWatch indicates a likely quarter-point interest rate reduction. The debate centers on whether this move signifies cautious easing due to inflation or a potential miscalculation given persistent service inflation figures.

Mark Pilipczuk, Chief Marketing Officer of CF Benchmarks, emphasizes that the market envisages only a single cut, with further changes anticipated post-June. He suggests that alluding to an earlier cut could drive Bitcoin positively.

According to Shivam Thakral, CEO of BuyUCoin, Bitcoin rests within robust on-chain and ETF support channels, with historical patterns hinting at upward momentum. Thakral notes that a consistent recovery depends on renewed ETF inflows and macroeconomic stability, warning that an assertive Federal Reserve stance might dampen recovery hopes.

Ethereum and Solana Stir the Markets with New Developments

Away from Bitcoin, noteworthy activities are emerging in the broader crypto sphere. Ethereum’s recent wallet activities have reignited staking interest. Meanwhile, Solana experiences a boost in developer engagement, coinciding with several GameFi project launches. These shifts indicate that altcoin investments remain appealing despite general market downturns.

• The broader market remains relatively unchanged over the past 24 hours.
• Ethereum saw a slight 0.8% decline, while Solana rose by 1.2%.
• XRP maintained stability, though Avalanche experienced a drop of over 2%.
• Meme tokens continued to display minor fluctuations amid low trading volumes.

Stakeholders are keenly watching the developments in these various fronts, hoping to discern clearer trends and directions in a market characterized by volatility and opportunity alike.