Crypto Today: Bitcoin, Ethereum, XRP regain strength despite mixed signs from ETFs, retail demand
- Bitcoin rises above $92,000 as ETF inflows resume while retail demand falters.
- Ethereum edges up above $3,100 despite extended ETF outflows.
- XRP springs from $2.00 support, supported by institutional demand as ETFs post 15 days of consecutive inflows.
Bitcoin (BTC) is trading marginally above $92,000 at the time of writing on Monday, supported by improving market sentiment ahead of the Federal Reserve (Fed) monetary policy decision on Wednesday.
Altcoins, including Ethereum (ETH) and Ripple (XRP), are edging higher following in Bitcoin’s footsteps. Ethereum is closing in on $3,200, while XRP edges up above $2.10 after bouncing off support at around $2.00.
Data spotlight: Bitcoin rises amid ETF inflows, low retail demand
Bitcoin spot Exchange Traded Funds (ETFs) resumed inflows on Friday, with nearly $55 million streaming in after two days of consecutive outflows of $195 million on Thursday and $15 million on Wednesday, according to data from SoSoValue.
The cumulative total inflow volume stands at $57.62 billion, with net assets of $117 billion. Continued inflows underpin positive market sentiment, which helps bolster Bitcoin’s uptrend.
However, retail demand remains significantly low despite a slight increase in futures Open Interest (OI) to $57.16 billion on Monday from $56.32 billion the previous day. Still, OI is far from the record high of $94.12 billion seen on October 7, before the flash crash on October 10. Low retail demand often reflects a weak tailwind, as investors are not convinced that Bitcoin price can sustain an extended uptrend.
Ethereum, unlike Bitcoin, experienced outflows of $75 million on Friday and $42 million on Thursday. BlackRock’s ETHA was the only US-listed ETH spot ETF in the red on Friday, with the rest remaining quiet. Meanwhile, the cumulative inflow volume remains at $12.88 billion, with net assets of $18.94 billion.
XRP spot ETFs, on the other hand, are on a stellar performance streak, with 15 consecutive days of inflows. SoSoValue data shows that XRP ETFs recorded $10 million in inflows on Friday and have not experienced outflows since their debut on November 13. The cumulative total inflow stands at $897 million, with net assets of $861 million.
Chart of the day: Bitcoin bulls push to regain control
Bitcoin is trading slightly above $92,000 at the time of writing on Monday, as bulls aim to retain control of the trend. The upswing is supported by the buy signal from the Moving Average Convergence Divergence (MACD) indicator on the daily chart seen on November 26. Green histogram bars are expanding above the zero line, backing a positive thesis.
The Relative Strength Index (RSI) on the same chart is at 48, suggesting that bullish momentum is gradually increasing. An RSI extension above the midline would add to the positive outlook, increasing the odds of a swing toward $100,000.
Still, Bitcoin price holds below the down-trending 50-day Exponential Moving Average (EMA) at $97,238, the 100-day EMA at $102,593 and the 200-day EMA at $103,953, all of which may cap rebounds. A reversal below $90,000 could accelerate the downtrend and test a short-term support level at $87,719, which was tested on Sunday.
Altcoins update: Ethereum, XRP rise above key support
Ethereum is extending its recovery above $3,100, as bulls push to tighten their grip and break a descending trendline resistance. The RSI on the daily chart crossed above the 50 midline.
The MACD on the same chart has maintained a buy signal since November 25. ETH’s trend could remain bullish if the histogram bars continue to expand above the mean line and the indicator crosses into the bullish region.
A break above the 50-day EMA at $3,316 could bolster Ethereum’s bullish bias. However, traders must be aware of the 200-day EMA at $3,459 and the 100-day EMA at $3,521, where ETH could encounter resistance and slow down the uptrend toward $4,000.
Meanwhile, XRP rises above $2.10 on Monday after bulls defended support at $2.00 on the previous day. Buyers are pushing to retain control as the RSI on the daily chart tries to reach the neutral level of 50.
The 50-day EMA is holding at $2.27, the 100-day EMA at $2.43 and the 200-day EMA at $2.47, all of which could slow down XRP’s uptrend. Buyers must flip the moving averages into support to reinforce the bullish grip, and an extended move above the descending trendline would further bolster it. Still, XRP is not out of the woods yet amid the growing risk of another swing below the pivotal $2.00 level.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.
The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.
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