Bitcoin, Ethereum Prices Edge Lower: What Is Driving Crypto Markets?

Cryptocurrency prices remained under pressure, with major digital assets recording declines over the past seven days. Bitcoin, Ethereum, BNB, XRP and Solana reflected a broad pullback across the market.

At the time of writing, Bitcoin was trading at $83,364.24, down 0.29 per cent over the past 24 hours and 1.12 per cent over the past seven days. The cryptocurrency had a market capitalisation of around $1.67 trillion, while its 24-hour trading volume stood at $26.67 billion, according to coinmarketcap data.

Binance Research noted that Bitcoin gained 9.3 per cent after the September US Federal Reserve rate hike, while Ethereum rose 2.70 per cent. It added that Bitcoin’s resilience could be tested if long-term US Treasury yields rose further.

Ethereum was trading at $2,502.48, down 1.09 per cent over 24 hours and 4.52 per cent over the week. BNB was trading at $742.03, down 0.38 per cent over the past 24 hours and 3.50 per cent over the week. XRP was trading at $1.36, down 0.70 per cent in 24 hours and 7.39 per cent over seven days. Solana was trading at $107.16, down 1.25 per cent over 24 hours and 9.79 per cent over the past week.

What Is Driving Crypto Prices?

Bitcoin and Ethereum have come under pressure amid concerns over inflation. Prateek Gupta, head of business, Mudrex said, “Bitcoin and Ethereum are trading as macro-sensitive assets, with interest-rate expectations, bond yields and oil prices shaping market direction. Sticky inflation and expectations of tighter monetary policy are weighing on risk appetite.”

He added that outflow in crypto exchange-traded funds (ETFs) of more than $278 million in early October had added to selling pressure, while Ethereum faced further pressure from weaker institutional flows and its greater sensitivity to equity-market movements.

What Is The Near-Term Outlook For Bitcoin And Ethereum?

The near-term direction of Bitcoin and Ethereum will depend on macroeconomic developments. Gupta said, “If core inflation continues to ease, oil prices moderate and institutional inflows recover, Bitcoin could attempt to retest recent highs near $86,000. However, renewed inflationary pressure, rising yields and further ETF outflows could push prices lower.”

He added that Ethereum’s recovery would depend on improving institutional demand and progress on network upgrades.