Bitcoin and Ethereum Prices Crash Post “Disappointing” U.S. Economic Data

The crypto market is under pressure as Bitcoin (BTC), the leading cryptocurrency, struggles to sustain its recent gains. Over the past 24 hours, Bitcoin has dropped nearly 7%, wiping out its three-week high. Ethereum (ETH) has also taken a hit, with its price falling by almost 10%.

Binance Reports Sharp Bitcoin Sell-Off

Binance, the world’s largest crypto exchange by trading volume, has seen a significant surge in Bitcoin selling. CryptoQuant analyst Darkfost noted that Binance’s hourly Net Taker Volume—a key indicator of market sentiment—plunged to -$325 million, the highest negative value recorded in 2025.

The sell-off was fueled by disappointing U.S. economic data, including weaker-than-expected PMI and job openings figures. These reports have made risky assets like Bitcoin less attractive, leading to increased sell-offs. While some analysts are concerned about a potential long-term bearish trend, others view this as a temporary reaction to economic news.

Ethereum Sees First Big Drop of 2025

Ethereum, the second-largest cryptocurrency, has also experienced a significant drop, marking its first major price dip this year. The decline coincides with rising expectations that the Federal Reserve may hold off on a rate cut during its upcoming January 29 meeting.

Although Ethereum investors remain calm, outflows from ETH exchange-traded funds (ETFs) have reached $86 million, adding to the bearish sentiment.

Coinbase Stands Strong

While Binance faces selling pressure, Coinbase, another leading exchange, has observed increased buying activity. This trend appears to be supported by strong ETF data earlier in the week. If the buying momentum persists, Ethereum could recover some of its losses in the near term.

What’s Next for the Crypto Market?

While Bitcoin and Ethereum are under pressure, there’s still hope for a potential recovery if ETF inflows and buying interest rise. For now, experts advise caution, especially with upcoming events like Trump’s inauguration adding uncertainty to the market.

Currently, Bitcoin’s price has dropped by 6.5%, trading at $95,433, showing a 6.5% decrease over the last 24 hours. This has also caused its market cap to fall to $1.89 trillion.

Similarly, Ethereum (ETH) has experienced a decline, with its price now at $3,339, marking a 9% drop in the last 24 hours.

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