In the United States, Bitcoin ETFs continue to accumulate assets even as prices hover around the $90,000 range. According to Glassnode data, the cumulative cost basis of ETFs has formed a significant support level in the market since last year. Notably, two major corrections since 2024, occurring from March to August 2024 and January to April 2025, hit bottom at this cost base before rebounding. Despite net weekly ETF inflows turning negative during both periods, the price floor remained intact.
ETF Buying Pressure Climbs Back to Critical Levels
Currently, the market is witnessing a similar pattern. Bitcoin has declined by 28% from its peak of $126,000 in October, nearing the ETF cost band of $83,000. Since the beginning of December, net outflows from ETFs have been observed. The price has decreased by 1.3% in the last 24 hours, settling around $90,000. It has shown significant recovery from the trough of $84,600 tested on December 2.
Meanwhile, U.S. ETF products currently hold Bitcoin worth $117.6 billion, accounting for approximately 6.55% of the total supply. This structural demand indicates that the price might find support again near $83,000.
Fed’s Rate Decision to Play a Decisive Role in Crypto Markets
All eyes are on the upcoming FOMC meeting scheduled for Wednesday. CME FedWatch data suggest that a quarter-point interest rate cut is almost certain. The critical question, however, is whether this cut represents a safe easing step related to inflation or a political mistake given that service inflation remains above target.
Additionally, Mark Pilipczuk, CMO of Kraken’s subsidiary CF Benchmarks, notes that markets are pricing in only a single rate cut, with the next move not expected until before June. However, he emphasizes that hinting at an earlier cut could create positive momentum for Bitcoin.
Shivam Thakral, CEO of BuyUCoin, highlights that Bitcoin is situated within a strong on-chain and ETF support zone, with historical risk-reward dynamics indicating an upward trend. Thakral expresses that a sustainable recovery requires renewed acceleration in ETF inflows and macro stability, though a hawkish Fed stance could weaken recovery expectations.
Market Observations: Ethereum and Solana’s New Moves
Beyond Bitcoin, significant developments are occurring in the global market. Last week, substantial wallet movements on the Ethereum network triggered a resurgence of staking activities. Simultaneously, the Solana ecosystem recorded a notable rise in developer activity with the launch of new GameFi projects. These developments demonstrate that investors are still seeking opportunities in altcoins despite the market correction.
Meanwhile, the broader market displays a sideways trend over the last 24 hours. Ethereum has declined by 0.8%, while Solana has risen by 1.2%. On the other hand, XRP has shown a sideways pattern, while Avalanche has fallen by over 2%. In the world of meme tokens, small fluctuations emerge with low volumes, reflecting a continued search for direction in the market.