Crypto Today: Bitcoin, Ethereum hold steady while XRP slides amid mixed ETF flows
- Bitcoin eyes short-term breakout above $87,000, underpinned by a significant increase in ETF inflows.
- Ethereum defends support around $2,800 as mild ETF outflows suppress its recovery.
- XRP holds above at $1.82 amid bearish technical signals and persistent inflows into ETFs.
Bitcoin (BTC) is trading above $87,000 at the time of writing on Thursday, supported by a resurgence of inflows into spot Exchange Traded Funds (ETFs). High volatility has characterized trading in the cryptocurrency market, as seen in a sharp rebound above $90,000, followed by aggressive selling that brought prices to Wednesday’s low of $85,314.
Ethereum (ETH) showcases stability above its short-term $2,800 support, but sentiment surrounding the smart contracts token has continued to deteriorate, as evidenced by steady ETF outflows.
Meanwhile, Ripple (XRP) is struggling to hold above $1.82, despite steady inflows into ETFs. A close above $2.00 would confirm a bullish turnaround, but if bears tighten their grip, the downtrend may stretch to April’s low of $1.61.
Data spotlight: Bitcoin, XRP see ETF inflows as ETH outflows continue
Bitcoin spot ETFs listed in the United States (US) experienced a significant resurgence in inflows, with approximately $457 million deposited on Wednesday. SoSoValue data shows that the cumulative net inflow currently stands at $57.73 billion and net assets at $112.57 billion. If inflows are steady toward the end of December, market sentiment may improve, making Bitcoin attractive to investors ahead of the New Year.
Meanwhile, inflows into XRP spot ETFs have been steady since their debut on November 13. Approximately $19 million was deposited into US-listed XRP ETFs on Wednesday, bringing the cumulative net inflow to $1.03 billion and net assets to $1.14 billion, according to SoSoValue data.
The persistent inflows indicate that institutional interest in XRP-related investment products is growing, potentially supporting price increases.
Ethereum, on the other hand, recorded the fifth consecutive day of outflows, with investors withdrawing approximately $22 million on Wednesday. The persistent outflow streak suggests that investors are not convinced Ethereum can make an immediate turnaround and sustain an uptrend, which could explain the need to reduce their risk exposure.
Chart of the day: Bitcoin trades under pressure and bearish signals
Bitcoin price is struggling to hold above $87,000 at the time of writing on Thursday after rebounding from the previous day’s low of $85,314. The Moving Average Convergence Divergence (MACD) indicator is poised to confirm a sell signal on the daily chart, which will manifest with the blue line crossing and settling below the red signal line.
Bitcoin also sits below the 50-day Exponential Moving Average (EMA) at $94,515, the 100-day EMA at $100,145 and the 200-day EMA at $102,544, all of which slope downward, affirming the bearish outlook.
On the upside, a close above the dotted descending trendline would mark the first step toward gaining momentum, potentially pushing BTC past the 50-day EMA. The Relative Strength Index (RSI) on the same daily chart has risen marginally to 40, as bulls push to reclaim $90,000. The RSI should extend its recovery above the midline to reinforce a bullish turnaround toward $100,000.
Altcoins update: Can Ethereum, XRP hold key support?
Ethereum is trading above its short-term support at $2,800 at the time of writing on Thursday, as the broader cryptocurrency market struggles with heightened volatility.
The RSI on the daily chart has stabilised at 38 within the bearish region, suggesting that ETH has the potential for a knee-jerk recovery, but remains largely in bearish hands.
The MACD indicator on the daily chart confirmed a sell signal on Wednesday when the blue line crossed below the red signal line. Investors may consider reducing their exposure, especially with the red histogram bars expanding below the mean line.
Looking up, a close above the pivotal $3,000 level could help shape the uptrend. However, the downward-trending 50-day EMA at $3,230, the 200-day EMA at $3,422 and the 100-day EMA at $3,438 support an overall bearish outlook. Bulls should push to reclaim the moving averages as support, paving the way for a sustained uptrend.
As for XRP, sellers are largely in control despite support at $1.82 holding on Thursday. The MACD indicator on the daily chart has maintained a sell signal since Tuesday, which may prompt investors to reduce risk exposure, further driving selling pressure.
Meanwhile, the RSI has stabilized at 35 on the same chart, which implies XRP may consolidate ahead of a potential recovery targeting highs above $2.00. However, XRP should close above the 50-day EMA at $2.17 to mark the first major step toward a sustained uptrend. A descending trendline marks a significant resistance. This hurdle should be breached to pave the way for recovery beyond $2.50.
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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