Cryptocurrencies continue to fall sharply at the beginning of this week. Bitcoin (BTC) is dropping significantly and is in danger of falling below $82,000 after having approached $88,000 last Friday. Most 'altcoins' are also painted red. Ethereum (ETH) is down 2% and threatens to drop below $1,800, while tokens like XRP, Dogecoin (DOGE), and Cardano (ADA), among others, are experiencing declines of up to 5%. Other cryptocurrencies like Solana (SOL) are diverging from the general market downturn.
Despite these widespread declines, spot Bitcoin exchange-traded funds (ETFs) recorded net inflows of $196 million last week. In contrast, their Ethereum counterparts closed the trading week with a net loss of $8 million.
These declines occurred after the U.S. stock market ended the week with significant losses, heavily influenced by the latest macroeconomic data and the trade war in the United States. First, the data from the Personal Consumption Expenditures Price Index, known as the PCE index, remained stable at 2.5% in January, matching analysts' consensus forecasts. Meanwhile, the core rate, which excludes food and energy, accelerated one-tenth more than expected, to 2.8%.
This indicator is the Federal Reserve's (Fed) favorite for guiding monetary policy, so this upside surprise could further complicate interest rate cuts in the coming months.