Crypto Stable, PCE Data Determines Direction
The crypto market moved cautiously in the US session on Wednesday after volatility at the start of the week. Bitcoin held steady in the $112,000–$113,000 area and Ethereum around $4.1,000, with market participants awaiting new clues on the direction of US interest rate cuts following Jerome Powell's cautious comments. The focus next turns to Friday's PCE data, which could shift Fed policy expectations.
Institutional fund flows remain fragile: the spot Bitcoin ETF recorded daily outflows of over $100 million and the Ether ETF around $140 million, indicating caution following Powell's "cautious" tone. Price-wise, some altcoins remained volatile; selective rallies emerged but were inconsistent amidst sentiment still weighing interest rates and growth prospects.
Structurally, the market is still digesting the massive liquidation that wiped out over $1.5–$1.7 billion earlier this week, although the latest daily liquidation rate has begun to decline (around $290–$370 million/24 hours), indicating that forced selling pressure is easing. If BTC can hold the $112,000 range and the PCE doesn't overheat, there's room for a gradual recovery. Conversely, a hot data print or continued ETF outflows could prolong the consolidation phase and put pressure on high-beta altcoins.
Source: Newsmaker.id
