After Deleveraging, Crypto Seeks Direction
The crypto market traded slightly higher on Wednesday. Bitcoin traded narrowly in the $112,000–$113,000 range, while Ethereum held around $4.1,000, as investors awaited fresh guidance from US PCE data later this week following cautious comments from Fed Chair Jerome Powell. Sentiment remains fragile following the largest deleveraging event of the year, which triggered widespread pressure earlier in the week, making market participants more defensive at key technical levels.
Institutional fund flows have not been solid. US spot Bitcoin ETFs recorded a net outflow of approximately $104 million on September 23, led by FBTC and ARKB, although IBIT and BTCO briefly posted small inflows. The Crypto Fear & Greed Index also dipped to the 40–44 range (Fear/Neutral), indicating reduced risk appetite compared to last week. Price-wise, altcoins tended to lag behind; some major coins, such as SOL, fell more sharply than BTC and ETH, emphasizing the rotation into large-cap cryptocurrencies.
Looking ahead, the market is weighing two catalysts: the Fed's interest rate cut path and developments in crypto ETF regulations in the US. Regulators are accelerating the launch of new ETFs, opening up the possibility of coin-based products beyond BTC/ETH in the fourth quarter—a potential liquidity booster, although the direction of demand remains to be seen. Tactically, BTC's holding above $112,000 maintains a consolidation scenario; a break below could trigger further liquidation and a test of $110,000, while a "benign" PCE signal could lead to a test of $115,000–$117,000 in the short term.
Source: Newsmaker.id
