The crypto market is recording volatilty at the beginning of the Lunar New Year week. The market is down by over 2.7% in the past 24 hours, with a market cap of over $2.35 trillion, with both Bitcoin and Ethereum trading in the red.
Despite the current downtrend, expectations are optimistic for the BTC and ETH markets, but only if sentiment improves and other conditions are met.
On February 17, we’re celebrating the Chinese New Year as we’re entering the Year of the Horse. The Lunar New Year is considered the most important event in China and the Chinese communities around the planet.
Bitcoin and Ethereum price actions on Lunar New Year Eve
At the moment of writing this article, BTC is trading above $68,800, down by over 2% in the past 24 hours.
BTC recorded a downward price trajectory from over $70,000 on February 15, dropping to lows near $68,000, before slightly rebounding to current prices.
Meanwhile, ETH is a weaker performer compared to BTC in the past 24 hours, and the digital asset is trading above $1,970, down by more than 3.8%.
ETH price dropped from over $2,060 on February 15, dipping to $1,930 levels on the same day, before debuting an upward trajectory on February 16.
BTC and ETH price predictions for the week
Bitget’s Chief Analyst, Ryan Lee, analyzed the current price actions for both BTC and ETH, and laid down predictions for the digital assets.
Lee expects a consolidation for BTC between $60,000-$70,000 range with limited downside risks, especially during this week, when volumes typically thin out.
Lee sees ETH’s price rebounding above $2,050, but stalling near this level, even as staking surpasses 30% of the total supply. He noted that onchain conviction is strengthening while short-term price action remains subdued due to broader market caution.
He also mentioned the ETH/BTC persistent downtrend. Trading View data shows ETH/BTC down by over 3% in the past week, and down by more than 16% during the last month. ETH/BTC is down by over 15% YTD, but on February 16, the pair saw a modest upward move.
ETH/BTC’s dynamic reflects long-term holder commitment and a tighter circulating supply, and, according to Lee, both these factors are fundamentally constructive for ETH’s role across DeFi and the broder onchain finance.
ETH could see a modest rebound if liquidity conditions stabilize and institutional interest is renewed.
Potential market triggers
Key crypto market triggers include institutional interest, the next FOMC meeting, market sentiment, and the latest announcements by the X platform.
Positive flows in BTC, ETH ETFs
BTC and ETH ETFs recorded inflows on February 13 following several outflow days. BTC ETFs saw over $15 million in inflows last Friday, and ETH ETFs saw over $10 million inflows, according to data from SoSoValue.
At the end of last week, institutional interest in both assets saw a mild recovery following a break.
If positive flows continue this week as well, they could support prices for BTC and ETH.
Next FOMC meeting decision
Other market triggers include US rate expectations and an overall improvement in market sentiment.
For now, CME Group shows only a 7.8% probability for another rate cut in March. The next FOMC meeting is scheduled for March 18.
Sentiment shift in crypto markets
The general market sentiment is still in the Extreme Fear zone, according to the CMC Fear and Greed Index. However, the index is currently pointing at 12, after dropping to 8 on February 7, signaling a modest upward reversal.
X support for crypto
Another market catalyst is the recent announcement made by the X platform’s Head of Product, Nikita Bier, who revealed that pro-crypto features will be integrated into X in the coming weeks. This means fresh capital entering the markets that can trigger more bullish moves.
Overall, the crypto industry has plenty of reasons to maintain optimism during the Lunar New Year week, and beyond. The Year of the Horse is expected to bring vitality, speed, and independence, marking renewed freedom.
