Bitcoin (BTC) and Ethereum (ETH) Market Cap Has Shed Over $1.3 Trillion Since Donald Trump Took Office

After dropping more than 14 percent last week, Bitcoin (BTC) price has been retesting a crucial support level of around $78k in the past two days.

The cryptocurrency market, led by Bitcoin (BTC) and Ethereum (ETH), has shed more than $1.3 trillion in valuation since U.S. President Donald Trump took the oath of office for his second term. The crypto market has experienced heightened selling pressure during the past eight weeks amid the mixed fundamentals, especially from the political environment.

Announcing the strategic Bitcoin and crypto reserve, which was highly anticipated, the Trump administration has also brought to light the ongoing tariff trade wars, which have changed the entire market dynamics. Consequently, on-chain data shows institutional investors have dramatically reduced their appetite for crypto assets, led by the U.S. spot BTC ETFs which have lost over $4.3 billion in the past two months.

However, despite the pessimism surrounding the crypto market, there are still some positive developments that could bode well for the future of digital assets in the long term.

Bitcoin Price Expectations Today

After dropping more than 14 percent last week, Bitcoin (BTC) price has been retesting a crucial support level of around $78k in the past two days. In the two-hour timeframe, BTC price has been forming a potential bearish continuation pattern, with the next target around $73.7k.

According to Arthur Hayes, co-founder of BitMEX, Bitcoin price will likely continue in bearish sentiment until major global central banks – led by the Fed, PBOC, ECB, and BoJ – kickstarts quantitative easing (QE) to stir up growth in their respective economies.

The plan:Be fucking patient. $BTC likely bottoms around $70k. 36% correction from $110k ATH, v normal for a bull market. Then we need stonks, $SPX and $NDX to enter free fall. Then we need TradFi muppet to go under. THEN we get Fed, PBOC, ECB, and BOJ all easing to make… pic.twitter.com/616lWvWv8b

— Arthur Hayes (@ArthurHayes_, December 10, 2024

The world’s leading cryptocurrency dropped to a low of $77k on Monday, which is crucial as it coincides with the 0.382 Fibonacci Retracement level. A break below this level might open up major sell orders towards the 0.5 Fibonacci Retracement, around $68k.

On the other hand, if the bulls manage to defend the current support level, then a rebound towards the 0.236 Fibonacci Retracement, around $88k, is possible.

Ethereum Price Prediction

The Ethereum (ETH) market has led the wider altcoin industry in bearish sentiment in the recent past. The large-cap altcoin, with a fully diluted valuation of about $225 billion and a 24-hour average trading volume of about $41 billion, closed last week below a crucial support range between $2.1k and $2.2k.

As a result, it is safe to assume that the Ethereum sellers have the higher ground over the buyers. In the past 24 hours, Ether’s price retested the rising trendline of a regular chart of the weekly timeframe. However, a consistent close below $1,760 will trigger a heavy selloff in the coming weeks for Ether.

According to crypto analyst Benjamin Cowen, Ethereum price will likely bottom out after the Fed ends the prolonged Quantitative Tightening (QT).

Crypto analyst predicts when ETH price will bottom out - Benzinga

XRP Price Prediction

Ripple Labs’ XRP price has been forming a potential reversal pattern since early December 2024, characterized by a head and shoulders (H&S) formation coupled with a bearish divergence of the weekly Relative Strength Index.

In the past few days, the XRP price has been retesting a crucial support level around $2, which coincides with the possible neckline of the H&S pattern.

If the XRP buyers fail to defend the current support level, a major selloff towards $1.5, which coincides with the 0.618 weekly Fibonacci Retracement, will be inevitable.

The post Bitcoin, Ethereum, XRP price analysis: Crucial levels to watch appeared first on AM Cryptocurrency News.