The crypto market took a sharp hit today, with most major tokens posting heavy losses. Bitcoin fell below $117,000, Ethereum plunged by 25.17% to $3,650, and other altcoins like Solana and XRP followed the same trend.
The sell-off came after a surprise $130 million outflow from Bitcoin ETFs, breaking a 12-day streak of steady inflows. With prices hitting recent highs, some traders also locked in profits, adding to the pressure.
Another factor weighing on sentiment is the upcoming speech by Fed Chair Jerome Powell, which could influence the outlook on interest rates. Many investors are holding back until they hear what Powell has to say.
While prices are falling, things aren’t looking disastrous. According to on-chain data, the market isn’t in panic mode.
CryptoQuant analyst Axel Adler Jr notes that Bitcoin is still trading within what he calls the “growth zone.” This is the range between the Investor Price Median at $92,000 and the Hype Alert Threshold at $139,000.
“We’re not in the danger zone of excessive speculation,” Adler said on X.
In simpler terms, this means people are still holding or gradually buying, not chasing wild gains or panic selling. That’s usually a good sign for market stability.
The Advanced Sentiment Index is sitting at around 64%, which shows a positive outlook, but not overconfidence. If Bitcoin can stay above the $92,000 mark, it’s likely to keep support from long-term holders. This creates a strong base, even if prices remain volatile in the short term.
With Powell’s Tuesday speech coming up, all eyes are on what the Fed will signal next. If interest rates stay high for longer, crypto could face more pressure. On the other hand, any sign of easing could bring a fresh wave of buying.
Still, given the current sentiment and on-chain strength, there’s room for Bitcoin to climb gradually, as long as things don’t get too overheated.
Even after today’s sharp drop, Bitcoin isn’t showing signs of panic or irrational hype. As long as it holds above key support levels, the rally may just be taking a pause, not ending.
Analyst Axel Adler defines it as the range between $92,000 and $139,000, where investor interest is strong but not overheated.
Yes, his tone on interest rates can sway risk sentiment, which directly impacts crypto volatility.
Not necessarily—on-chain data shows investors are still accumulating and sentiment remains positive.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
All eyes are on the U.S. Federal Reserve today as it prepares to announce its…
South Dakota has joined the growing list of U.S. states exploring Bitcoin as part of…
The LINK price today hovered near $11.95 at the time of writing as its spot…
The BTC price USD trades within a subdued range shows its hard struggle to regain…
What does someone who made millions from Dogecoin see in Pepeto? Early Dogecoin investors buying…
Digitap ($TAP) is entering a phase where price action and product development are starting to…
