Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are experiencing declines on Friday after witnessing three consecutive days of losses, effectively testing their crucial support levels. Despite the presence of potential bullish RSI divergences, the overall bearish sentiment continues to affect the likelihood of any short-term recovery.
Bitcoin managed to recover slightly, trading at $66,000 on Friday after hitting a new yearly low of $58,115 earlier in the week, marking its lowest point since October 2024. The cryptocurrency has been under significant pressure due to intensified institutional selling, highlighted by net outflows of $1.35 billion from spot Exchange-Traded Funds (ETFs) reported through Thursday. This downward trend is exacerbated by ongoing geopolitical uncertainties and the Federal Reserve’s hawkish monetary policy, both of which are dampening investor appetite for riskier assets.
The overall cryptocurrency market capitalization has seen fluctuations, dropping from $2.12 trillion to $2.02 trillion before staging a modest rebound to around $2.06 trillion, where it stabilized at the time of writing as trading became active in Europe. The strain on cryptocurrencies intensified following a fresh downward movement in stock indices, which typically signals broader market unease.
In the last 24 hours, the performance of the most liquid coins varied significantly. AAVE led the pack with a gain of 5.6%, followed by Solana, which rose by 0.7%, and Theta Network, up by 0.1%. In contrast, Algorand, Polkadot, and NEAR Protocol lagged behind, showing declines of 6.7%, 6.2%, and 6.1%, respectively.
As the markets approach the start of active trading in the US, all eyes will be on how these cryptocurrencies respond amid prevailing bearish conditions and the critical support levels they are currently testing.
