Bitcoin Slumps to $41K, Sliding 15% Since ETF Listing, Support Level at $38K

Yesterday, US stocks 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 rising 0.54%. The latest employment data showed a continued tight labor market, and Federal Reserve officials have started downplaying market optimism for a rate cut in March. Bitcoin, on the other hand, has been falling since the launch of the ETF, dropping 15% from $48,969.
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US Economy Continues Strong, Fed Downplays Rate Cut Expectations in March
Bitcoin Miners Sell Coins, BTC Falls to 41K
Bitcoin Has Fallen 15% Since the ETF Launch
The US Department of Labor reported on Thursday that initial jobless claims decreased by 16,000, seasonally adjusted to 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 for a rate cut, suggesting that the pace and timing of the rate cut will be slower than expected by the market.
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According to the CME FedWatch Index, market expectations for a one-point rate cut in March have dropped to 54.6%, lower than the previous 70%.
The latest on-chain data from CryptoQuant shows a significant increase in selling activity by Bitcoin miners. In the past 24 hours, miners have sold nearly 10,600 BTC, equivalent to about $455.8 million. Additionally, the Bitcoin network’s hashrate has dropped 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 has been falling since the ETF launch, dropping 15% from $48,969.
Matrixport analyst Markus Thielen, who previously sparked controversy with rapid shifts in his bullish and bearish views, has released another report. He is bearish on Bitcoin in the short term, with a target price of $38,000, and bullish on Ethereum with a target price of $3,000.
From a technical perspective, $38,000 is indeed the next support level for Bitcoin.
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Matrixport Analyst: Bearish on BTC in the Short Term; Bullish on ETH, Which Will Rise to $3,000 Soon
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Further Reading
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US Stocks Continue to Rise, Bitcoin and Ethereum Continue to Rise After Breaking Below Moving Averages