Bitcoin briefly touched $105,000 on Wednesday morning before absolutely cratering once US markets opened. It dropped 4% in just a couple of hours, crashing back below $100,000. Ethereum got crushed even worse, falling nearly 5% under $3,200, while Solana and XRP both tanked hard.
This pattern of overnight gains getting wiped out during US trading hours has been happening for weeks now. The Coinbase Premium, which tracks the price difference between Coinbase and Binance, has been negative since late October. That basically means American investors aren’t buying; they’re either selling or sitting on the sidelines.
That’s the longest stretch of negative Coinbase Premium since March-April, when Bitcoin fell from over $100,000 down to $75,000. Not exactly the kind of comparison bulls want to hear right now.
Crypto stocks got destroyed too. Circle dropped 9.5% after earnings, while miners like Bitfarms, Bitdeer, and IREN all fell 5-10%. The whole sector is just bleeding.
The Fed situation isn’t helping either. What everyone thought was a slam-dunk rate cut in December has turned into complete chaos inside the central bank. Policymakers are split between worrying about inflation versus worrying about the job market weakening.
Since the Fed’s October meeting, Bitcoin ETFs have seen over $1.8 billion in outflows. That tells you everything about American institutional appetite right now; it’s basically nonexistent.
Conclusion
Overall, U.S. traders are dragging crypto down, institutions are pulling back, and Fed uncertainty is killing sentiment, leaving Bitcoin and the wider market stuck in a sharp, sentiment-driven downturn.
Also Read: Bitcoin Drops
