Crypto expert Crypto Wimar has explained why Bitcoin, Ethereum and XRP prices crashed, highlighting the ongoing selling pressure. The crypto market also faces the risk of further downward pressure from macro factors such as Japan’s upcoming interest rate hike.
Why Bitcoin, Ethereum, and XRP Prices Crashed
In one X messageCrypto Wimar revealed that Wintermute has dumped 40% of its holdings in the past three weeks, contributing to the crash in Bitcoin, Ethereum and XRP prices. The crypto expert further noted that the market maker is still dumping millions into it BTC and ETH on Binance, putting these coins at risk of further declines.
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Bitcoin, Ethereum and XRP prices are also collapsing as crypto market investors brace for one Japanese interest rate hike by the BOJ at their December 19 meeting. Polymarket data shows that there is currently a 97.4% chance that the BOJ will raise rates by 25 basis points. A rate hike in Japan will impact the crypto market as it puts a spotlight on the yen carry trade, where investors look to sell their assets before the yen strengthens and their debt becomes more expensive.
Meanwhile, it’s worth noting that Bitcoin, Ethereum, and XRP prices have crashed after each Fed rate cut this year. This similar price action comes as the Fed cut rates by 25 basis points last week. These crypto assets had seen a notable rebound prior to the Fed’s interest rate decision last week, indicating that the cut was already priced in.
Demand for Bitcoin, Ethereum and XRP also appears to be declining, even among institutional investors. Crypto analysis platform according to CryptoQuant that Bitcoin Treasuries growth is losing momentum, noting that the rate of accumulation is slowing despite 117 new companies adding BTC to their Treasuries this year. Ethereum Treasury company BitMine is also the only company that has continued to accumulate ETH at an impressive pace during this market downturn.
BTC threatens to fall below $50,000
Crypto analyst Titan of Crypto has indicated that the Bitcoin price could still fall below $50,000, putting Ethereum and XRP at risk of crashing as well. In one X messagethe analyst raised the possibility that a BTC bear pennant is forming.
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He noted that this is not a structure that market investors typically want to see a bull market. Crypto’s Titan added that the structure is still developing, but it is worth keeping a close eye on.
Meanwhile, the analyst’s accompanying chart showed that the Bitcoin price could fall below $50,000 as early as February next year. It is worth mentioning that veteran trader Peter Brandt had also previously predicted that BTC could fall below $50,000, based on his belief that the flagship crypto is already in crisis. bear market.
Featured image from Getty Images, chart from Tradingview.com