The cryptocurrency market is currently experiencing significant volatility, with Bitcoin (BTC), the leading digital currency, facing increased selling pressure. This downward trend is attributed to a combination of microeconomic data and shifting investor sentiment, which continue to impede any upward momentum. Over the past 24 hours, Bitcoin has seen a nearly 7% decline after reaching its highest point in three weeks. Ethereum, another major player in the crypto space, has also been affected, experiencing a drop of nearly 10%.
Bitcoin Faces Strong Selling Pressure
Binance, the largest cryptocurrency trading platform by volume, has reported a notable surge in Bitcoin selling activities. According to an analysis by Cryptoquant’s on-chain expert, Darkfost, Binance’s hourly Net Taker Volume—a crucial indicator of market sentiment—turned significantly negative. It registered a substantial $325 million, marking the highest negative volume ever recorded in 2025. This shift occurred in response to disappointing U.S. economic reports, including weaker-than-expected PMI and job openings data.
These economic reports have led to a decline in the attractiveness of riskier assets like Bitcoin, prompting increased sell-offs. While some analysts fear this could indicate a long-term bearish trend, others believe it could merely be a short-term market reaction.
Ethereum Sees Its First Big Drop of the Year
Ethereum has not been immune to the selling pressure, marking its first significant price decline of 2025. This drop comes amid rising expectations that the Federal Reserve might refrain from implementing a previously anticipated rate cut at its upcoming meeting on January 29. Despite the lack of panic among Ethereum investors, there has been a notable outflow of 86 million ETH from exchange-traded funds (ETFs).
Nevertheless, some positive developments are emerging. For instance, Coinbase, another leading cryptocurrency exchange, has experienced an increase in buying momentum, likely bolstered by strong ETF data reported earlier in the week. If this buying trend persists, Ethereum may have the potential to rebound.
What’s Next for the Crypto Market?
Despite the current pressure on Bitcoin and Ethereum, there remains the possibility of a market recovery if ETF inflows and buying interest continue to rise. However, experts advise caution, particularly with upcoming events, such as political changes, adding uncertainty to the market landscape.
At present, Bitcoin’s price has fallen by 6.5%, trading at $95,433, resulting in a market cap decrease to $1.89 trillion. Similarly, Ethereum (ETH) has experienced a decline, with its price now at $3,339, marking a 9% drop over the last 24 hours.
As the crypto market navigates these turbulent times, staying informed and exercising caution is crucial for investors and traders. The interplay between market dynamics and macroeconomic factors continues to shape the future trajectory of Bitcoin, Ethereum, and the broader cryptocurrency landscape.
