Crypto Today: Bitcoin, Ethereum, XRP extend sell-off amid ETF outflows
Bitcoin has dipped below $83,000, reflecting a broader market downturn driven by rising ETF outflows.
Ethereum remains interest, market sentiment remains relatively high, with the Crypto Greed & Fear Index sitting at 64 in the Greed territory on Thursday, down from 71 the previous day. Continued investor appetite could help mitigate these headwinds, potentially allowing for consolidation before another attempt at a breakout.
Ethereum spot ETFs continued their bearish trend for the seventh day in a row, as investors pulled $161 million on Wednesday. Cumulative inflows for the week through Thursday reached $413 million, indicating that US-listed ETFs are on track to record their second consecutive week of net outflows. These prolonged outflows suggest growing challenges and increase the likelihood of a significant sell-off.
XRP spot ETFs are showing an inconsistent pattern, characterized by a mix of inflows and quiet activity this week. US-listed spot ETFs saw little movement on Wednesday after reporting $3 million in outflows the day prior. As interest in the remittance token wanes, the path of least resistance appears to be downward.
“Bitcoin has already shown that strong ETF demand alone is not enough to drive a sustained rally when yields and the dollar are working against it,” Markus Levin, co-founder of XYO, said. “If the market can remain positive, Bitcoin could regain momentum toward $90,000 and eventually $100,000.”
Technical analysis: Bitcoin decline deepens
Bitcoin is trending downward below $83,000 as bullish momentum fades. Despite four consecutive days of losses, the pair maintains a constructive bullish bias, as the price remains well above the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), suggesting the primary uptrend is still intact despite the current consolidation.
The SuperTrend indicator at $79,664 remains below the current price, providing dynamic support. Meanwhile, momentum indicators are mixed; the Moving Average Convergence Divergence (MACD) is in negative territory, and the Relative <a not your keys, not your coins" principle. Additionally, ETFs involve management fees, which can increase the cost of holding the investment. Finally, while ETFs may reduce certain risks, they remain subject to the price volatility of the underlying cryptocurrency.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
