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Bitcoin drops to 41K, down 15% since the ETF listing, support seen at 38K.

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Bitcoin drops to 41K, down 15% since the ETF listing, support seen at 38K.

Yesterday, the US stock market ended a three-day losing streak, with the tech-heavy Nasdaq rising 1.35%, the S&P 500 rising 0.88%, and the Dow Jones closing up 0.54%. The latest job data showed a continued tight labor market, and Federal Reserve officials have started downplaying optimistic expectations of a rate cut in March. Bitcoin, on the other hand, has been declining since the launch of ETFs, dropping by 15% from 48,969.

US Economy Remains Strong, Federal Reserve Downplays March Rate Cut Expectations

The US Department of Labor reported on Thursday that initial jobless claims decreased by 16,000, with a seasonally adjusted figure of 187,000, the lowest level since September 2022. Retail sales data released on Wednesday also exceeded market expectations.

This week, Federal Reserve officials, including Christopher Waller, pushed back against market expectations of a rate cut, suggesting that the pace and timing of rate cuts will be slower than anticipated.

According to the CME FedWatch Index, the market's expectation of a one-point rate cut by the Federal Reserve in March has dropped to 54.6%, lower than the previous 70%.

Bitcoin Miners Sell Coins, BTC Falls to 41K

Latest on-chain data from CryptoQuant indicates a significant increase in selling activity by Bitcoin miners. In the past 24 hours, miners have sold nearly 10,600 BTC, equivalent to approximately $455.8 million. Additionally, the Bitcoin network's hashrate has dropped by 34% since last Friday, from a peak of 629 EH/s to a low of 414 EH/s, due to limited electricity usage in Texas caused by cold weather.

Bitcoin Down 15% Since ETF Listing

Bitcoin has dropped from $48,969 since the ETF listing, with a decline of 15%.

Matrixport analyst Markus Thielen, who previously sparked controversy with rapid shifts in his bullish and bearish views, has once again released a report stating a short-term bearish outlook for Bitcoin at $38,000 and a bullish outlook for Ethereum at $3,000.

From a technical analysis perspective, $38K is indeed the next support level for Bitcoin.

Matrixport Analyst: Short-term Bearish on BTC; ETH to Rise to $3,000 Soon