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. For now, BTC is holding near the $87,000 level, ETH is trading below $3,000, and XRP is hovering around $1.88. Dogecoin, Solana and Cardano are also trading lower.
U.S. government data showed that the economy grew at an annual rate of 4.3% in the third quarter, much higher than the 3.3% expected by markets. While this means a healthy and fast-growing economy, it has triggered short-term pressure on risk assets, including cryptocurrencies.
Historically, strong GDP readings have often led to short-term pullbacks in Bitcoin, usually in the range of 4% to 5%. Market watchers note that the last three GDP releases followed a similar pattern, with Bitcoin dipping briefly before moving higher again.
At the same time, crypto sentiment remains weak. The Fear and Greed Index is at 29, showing fear in the market, while the average crypto RSI sits near oversold levels, hinting heavy selling in recent sessions.
ETF Outflows Add to Pressure
Another major reason for today’s decline is the selling from crypto exchange-traded funds. Last week, crypto funds recorded $952 million in net outflows, snapping a three-week streak of inflows. Investors have now pulled money from crypto funds in six of the past ten weeks.
Ethereum ETFs saw the biggest hit, with $555 million in outflows, while Bitcoin funds lost $460 million. This selling has added pressure to prices, especially for Bitcoin and Ethereum.
However, not all assets are seeing exits. Solana and XRP continued to attract inflows, with $48.5 million and $62.9 million added last week, showing selective interest in certain altcoins.
Despite today’s decline, analysts say the bigger picture remains positive. A strong U.S. economy reduces recession risks, which is generally supportive for financial markets over time. In past cycles, periods of strong growth have eventually helped crypto recover and move higher.
Leverage in the market is also playing a role. As prices fall, leveraged positions are being unwound, adding to volatility and sharp moves in both directions.
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