Here’s Why is Crypto Market is Struggling to Recover (Feb 13)?

Frank Bevah
Frankbevah is a Senior Crypto Market Analyst and Stock & Crypto Journalist with 4 years of experience. He specializes in market analysis, trends, and reporting on the dynamic crypto and stock markets, providing insights and expert commentary.
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Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Here's Why is Crypto Market is Struggling to Recover (Feb 13)?

Highlights

  • Crypto market is facing pressure from institutional selling and ETF outflows.
  • Fear sentiment and leveraged liquidations are fueling ongoing market declines.
  • CPI data release could significantly impact near-term crypto price movements.

The crypto market has dropped by 0.84%, now valued at $2.29 trillion, mainly due to institutional selling. Ethereum faces ongoing corrections after failing to surpass crucial resistance at $2,150. XRP continues its downward slide, encountering resistance at its lower trendline. 

Bitcoin, Ethereum, and XRP have all experienced significant declines, with BTC down by over 5%, ETH by 6%, and XRP by 4% this week. The bearish trend persists, and these cryptocurrencies remain under pressure as their prices continue to weaken.

Why Crypto Market Is Facing Difficulties in Recovery?

The crypto market is currently facing significant challenges, driven by a combination of institutional selling pressure, fear sentiment, and leveraged liquidations. Major outflows from exchange-traded funds (ETFs) have raised concerns, with Bitcoin spot ETFs alone seeing a net outflow of $410 million on February 12. 

Ethereum ETFs also recorded substantial outflows, amounting to $113 million. Meanwhile, BlackRock, one of the largest institutional investors, transferred $227 million in Bitcoin and $29.5 million in Ethereum to Coinbase, signaling possible sell-side pressure.

This wave of selling is compounded by heightened market anxiety, with the CMC Fear & Greed Index showing extreme fear (index 8), reflecting widespread caution among investors. Adding to the turmoil. Over $3.6 trillion was wiped off the market in just 90 minutes, as gold and silver saw declines.

The liquidation of leveraged long positions has exacerbated the downward pressure, with Bitcoin alone seeing $105.26 million in liquidations within 24 hours. The market’s near-term outlook depends largely on the upcoming U.S. Consumer Price Index (CPI) data. 

A hotter-than-expected CPI report could spur further selling, driven by concerns over inflation and the Federal Reserve’s interest rate decisions.

With no signs of fresh institutional demand and major players opting for risk reduction, the crypto market remains under significant pressure. Investors are closely watching the CPI data, which could determine the future trajectory of crypto prices in the short term.

Bitcoin, Ethereum, XRP Price Prediction as Market Faces  Pressure

Bitcoin price has dropped by 0.61% over the past 24 hours, now trading at $67,308. If it holds above the key support of $65,000, there’s potential for a rebound toward the $70,000 resistance. 

However, a break below this support could lead to a decline toward $60,000. Bitcoin was rejected at the $70,000 mark on Sunday and experienced four straight days of losses, falling 5.5% by Thursday. The risk of a government shutdown adds to the overall market uncertainty.

Ethereum (ETH) is down 0.51%, currently priced at $1,969.21. If it holds above the $1,950 support level, a bounce back to $2,000 could be on the cards. A drop below this support would risk a return to the $1,700 low.

XRP also saw a 1.18% decline to $1.37. If it stays above $1.37, it could consolidate, but a break beneath this level may lead to a drop toward $1.10.

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Frequently Asked Questions (FAQs)

1. Why is the crypto market struggling to recover?

The crypto market is facing selling pressure from institutional investors, fear sentiment, and ETF outflows, which are causing price declines.

2. What caused the recent drop in Bitcoin's price?

Bitcoin’s price fell due to institutional selling, heightened fear sentiment, and liquidations of leveraged positions in the market.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Frankbevah is a Senior Crypto Market Analyst and Stock & Crypto Journalist with 4 years of experience. He specializes in market analysis, trends, and reporting on the dynamic crypto and stock markets, providing insights and expert commentary.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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