The crypto market is experiencing volatility at the start of the Lunar New Year week. The market is down more than 2.7% in the last 24 hours, with a market cap of more than $2.35 trillion, while both Bitcoin and Ethereum are trading in the red. Despite the current downtrend, expectations are bullish for the BTC and ETH markets, but only if sentiment improves and certain conditions are met. On February 17, we celebrate the Chinese New Year, entering the Year of the Horse. The Lunar New Year is considered the most important event in China and in Chinese communities around the world.
Bitcoin and Ethereum Price Evolution on Lunar New Year's Eve
At the time of writing, BTC is trading above $68,800, down over 2% in the last 24 hours.
BTC Price in USD Today BTC has seen a downward price trajectory from above $70,000 on February 15th, dropping to lows near $68,000 before recovering slightly to current prices. Meanwhile, ETH has underperformed BTC over the past 24 hours, with the digital asset trading above $1,970, down more than 3.8%.
ETH Price in USD Today ETH price fell from above $2,060 on February 15th, dropping to $1,930 levels on the same day, before starting an upward trajectory on February 16th.
Predictions for BTC and ETH this week
Bitget Chief Analyst Ryan Lee analyzed the current price movements of BTC and ETH, presenting predictions for the digital assets. Lee expects a consolidation for BTC in the $60,000–$70,000 range with limited downside risks, especially this week when volumes are typically lower. In the case of ETH, Lee anticipates a price rebound above $2,050, but stalling around that level, even if staking exceeds 30% of the total supply. He noted that on-chain confidence is strengthening, while short-term price action remains subdued due to general market caution. He also mentioned the persistent downtrend of the ETH/BTC pair. Trading View data shows that ETH/BTC is down over 3% over the past week and over 16% over the past month. ETH/BTC is down more than 15% year-to-date, but on February 16 the pair saw a slight upward movement.
Data Trading View ETH/BTC The dynamics of the ETH/BTC pair reflect long-term holder commitment and a tighter circulating supply, and according to Lee, both factors are fundamentally constructive for ETH's role in DeFi and broader on-chain finance. ETH could see a modest rebound if liquidity conditions stabilize and institutional interest is renewed.
Potential factors that can trigger market moves
Key crypto market drivers include institutional interest, the upcoming FOMC meeting, market sentiment, and the latest Platform X announcements.
Positive flows in BTC and ETH ETFs
BTC and ETH ETFs saw inflows on February 13 after several days of outflows. BTC ETFs saw inflows of over $15 million last Friday, and ETH ETFs saw inflows of over $10 million, according to data from SoSoValue. At the end of last week, institutional interest in both assets saw a slight rebound after a lull. If the positive flows continue this week, they could support BTC and ETH prices.
The decision of the next FOMC meeting
Other factors include expectations of US interest rates and a general improvement in market sentiment. For now, the CME Group indicates a probability of just 7.8% for another rate cut in March. The next FOMC meeting is scheduled for March 18.
target rate probabilities for next FOMC meeting – CME Group data
Change in sentiment in crypto markets
Overall market sentiment is still in the extreme fear zone, according to the CMC Fear and Greed index. However, the index is currently reading 12, after dropping to 8 on February 7, signaling a slight upside reversal.
Crypto support from X
Another market catalyst is the recent announcement by Nikita Bier, Head of Product of the X platform, who revealed that pro-crypto functionality will be integrated into X in the coming weeks. This means new capital entering the markets and can trigger more bullish moves. Overall, the crypto industry has enough reasons to remain optimistic during the Lunar New Year week and beyond. The Year of the Horse is expected to bring vitality, speed and independence, marking renewed freedom. BUY BTC, ETH