XRP News Today: XRP Slips 10% on Fed Outlook – BTC Dips Below $100k

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Bitcoin Falls Below $100,000 on Fed Outlook

On Wednesday, bitcoin (BTC) fell below $100k for the first time in five sessions. Investors reacted to the Fed’s upward revisions to inflation and Fed Funds rate projections. A higher-for-longer interest rate path can increase borrowing costs and affect demand for riskier assets.

The Fed’s policy outlook overshadowed market optimism that BTC would become a US strategic reserve (SBR) asset. Wednesday’s pullback also underscored the Fed’s continued influence on the crypto market.

Commenting on BTC’s price movements, Tony Sycamore, market analyst at IG, said,

“Bitcoin trades lower at $100,904 (-5.0%) as risk sentiment took a hit and US yields and the US dollar (rallied) after this morning’s hawkish FOMC rate cut. In a post above on BTC yesterday, we noted the bearish divergence evident on the RSI and the possible formation of a daily candle with a loss of momentum, which we said would increase “the chances of a corrective pullback.”

US BTC-Spot ETF Market: Will BlackRock’s ETF Save the Day?

On Tuesday, December 17, the US BTC spot ETF market extended its inflow streak to 14 sessions, the longest since February. BlackRock’s ( BLK ) iShares Bitcoin Trust ( IBIT ) ensured the winning streak stayed alive with net inflows of $741.4 million. Excluding IBIT, the US BTC spot ETF market had a net outflow of $247.5 million.

Early flow trends for the Wednesday session suggest that IBIT needs another great day to extend the inflow streak to 15 sessions. According to Farside Investors:

• Grayscale Bitcoin Trust (GBTC) had net outflows of $35.9 million.
• The Invesco Galaxy Bitcoin ETF (BTCO) saw net outflows of $25.2 million.
• Bitwise Bitcoin ETF (BITB) and ARK 21Shares Bitcoin ETF (ARKB) also reported net outflows.

Excluding iShares Bitcoin Trust (IBIT), the US BTC spot ETF market saw a total net outflow of $84.3 million.

US BTC spot ETF market demand remains key to price trends, with the current inflow streak pushing BTC to an all-time high of $108,237.

Bitcoin Price Outlook

On Wednesday, December 18, BTC fell 5.61%, reversing Tuesday’s gain of 0.37% to close at $100,189.

Short term BTC price trends will depend on US BTC spot ETF flows, SBR related news and US government BTC sales. A significant BTC sell-off by the US government amid waning demand for BTC spot ETFs could reactivate oversupply fears, potentially pulling towards $95,000. Conversely, BTC spot ETF market inflows and progress towards an SBR could push BTC towards $110,000.