Bitcoin (BTC) and Ethereum (ETH) declined on September 5 ahead of major central bank decisions and economic data releases. BTC traded at $79,599, down 1.75%, while ETH fell 2.45% to $2,455.
Central Bank Uncertainty
The declines come as investors await the US Consumer Price Index report scheduled for September 11. Current expectations show US inflation remaining at 3.4%. Markets are currently split on the Federal Reserve's September 16 decision, with prediction markets showing a 50% chance of a 25 basis point rate increase and 50% probability of unchanged rates.
The European Central Bank is widely expected to raise rates by 25 basis points on September 10, with markets pricing in a 100% probability of this move. Hawkish central bank actions typically pressure risk assets like cryptocurrencies.
Institutional Demand Continues
Despite the challenging outlook, Bitcoin and Ethereum exchange-traded funds recorded inflows on September 4. Bitcoin ETFs saw $174 million in inflows while Ethereum ETFs received $26 million, indicating sustained institutional demand despite inflation concerns.
Bitcoin Technical Levels
Bitcoin has fallen below the $80,000 psychological support level. Short-term holders have transferred 467,000 BTC valued at $35.4 billion to exchanges since August 17, averaging 27,500 BTC daily—29% above the three-month average. Despite this selling pressure, Bitcoin has continued creating higher highs, suggesting demand absorption of the coins entering the market.
Ethereum Resistance Points
Ethereum is testing resistance at the 200-week exponential moving average of $2,455, which it has approached for three consecutive weeks without closing above. Additional resistance exists at $2,555, with support at $2,215. Technical momentum, indicated by a relative strength index reading of 58, favors bulls.
