- Cryptocurrency Today: Bitcoin, Ethereum, and XRP Show Technical Weakness as Risk-Avoidance Sentiment Declines

Bitcoin (BTC) held steady above the short-term support level at $76,000, after extending its losses from its weekly high of $79,486, following the hawkish tone of the Federal Reserve (Fed) and the uncertainty surrounding peace negotiations between the United States and Iran.

Altcoins, including Ethereum (ETH) and Ripple (XRP), continued to lose momentum, with their prices falling below short-term demand levels. Ethereum’s price hovers above $2,250, down from its weekly peak of $2,404, while Ripple trades at $1.37, down nearly 5% from its weekly high of $1.45.

- Markets Assess the Fed’s Hawkish Tone Amid a Retreat in Risk Appetite:
The Federal Open Market Committee (FOMC) kept interest rates unchanged for the fourth consecutive cycle in the range of 3.50% - 3.75% on Wednesday.

The recent press conference by Federal Reserve Chair Jerome Powell was likely more significant. In his remarks, Powell pointed to risks of rising inflation driven by global energy prices, with West Texas Intermediate crude having surpassed $100 at the time of writing.

The main reason behind higher oil and gas prices lies in the conflict unfolding in the Middle East, and the uncertainty surrounding peace negotiations. Powell emphasized that the committee needs to assess the impact of both energy-related shocks and tariffs before considering easing the current restrictive monetary policy.

In a surprising move, the outgoing chair of the Federal Reserve announced that he would continue serving as governor after the anticipated leadership transition. He confirmed that his decision to remain on the board is intended to ensure the central bank can “conduct monetary policy without taking into account political factors.”

During the press conference on Wednesday, Powell said: “After my presidential term ends on May 15, I will continue to serve as a governor for a period that will be determined later.”

The hawkish stance of the Federal Reserve appears to be weighing on the cryptocurrency market, as evidenced by the Fear and Greed Index staying at 29, near the lower bound of the fear zone, down from last week’s average of 46.

Cryptocurrency Fear and Greed Index | Source: Alternative

Institutional interest in spot Bitcoin exchange-traded funds (ETFs) has cooled this week, with outflows of $263 million on Monday, $90 million on Tuesday, and about $138 million on Wednesday.

Total cumulative inflows now stand at $58.07 billion, with an average net assets under management of $99.27 billion, according to SoSoValue.

Bitcoin ETF Inflows | Source: SoSoValue

Ethereum spot ETF funds saw a third consecutive day of outflows totaling $88 million on Wednesday. SoSoValue data shows that investors withdrew nearly $50 million on Monday and about $22 million on Tuesday. Total inflows were $11.94 billion, while assets under management were $13.10 billion.

Ethereum ETF Inflows | Source: SoSoValue

Meanwhile, XRP spot ETFs recorded modest net cash inflows of $3.59 million on Wednesday, compared with $2.20 million logged on Tuesday. Total inflows now stand at $1.30 billion, with an average net assets under management of $1.04 billion.

XRP ETF Inflows | Source: SoSoValue
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