Daily Crypto Signals: Bitcoin Holds $117K as XRP Faces Pressure Amid SEC ETF Approvals
The cryptocurrency market experienced mixed signals today as Bitcoin consolidated around $117,000 while XRP dropped 15% from recent highs
Quick overview
- Bitcoin consolidated around $117,000 while XRP dropped 15% from recent highs amid mixed market signals.
- The SEC approved in-kind transactions for crypto ETPs, potentially lowering costs and increasing efficiency in the market.
- Ray Dalio recommended a 15% portfolio allocation to Bitcoin and gold, reflecting growing institutional interest in cryptocurrencies as a hedge against economic concerns.
- XRP faced selling pressure with a significant drop in futures open interest, raising questions about its adoption and market demand.
The cryptocurrency market experienced mixed signals today as Bitcoin BTC/USD consolidated around $117,000 while XRP XRP/USD dropped 15% from recent highs, even as the SEC approved in-kind transactions for crypto ETPs and Ray Dalio recommended 15% portfolio allocation to Bitcoin amid US debt concerns. Market attention now turns to Wednesday’s Federal Reserve meeting and anticipated White House crypto policy updates that could influence near-term price direction.
Crypto Market Developments
There were big changes in the cryptocurrency world that could change how the market works. The US Securities and Exchange Commission gave the go-ahead for cryptocurrency exchange-traded products to have in-kind creation and redemption methods. This means that authorized participants can trade shares directly for crypto assets instead of cash. New SEC Chairman Paul Atkins is pushing for this change, which is meant to make crypto ETPs “less costly and more efficient” by giving them more options and lowering transaction costs.
At the same time, traditional banking integration sped up when Rakbank became the first traditional bank in the UAE to let people trade crypto using its mobile app, which is powered by the Austrian company Bitpanda. The service lets clients trade cryptocurrencies straight from their UAE dirham accounts without having to pay foreign currency costs. This is a big step toward making cryptocurrencies more popular in the Middle East.
As billionaire hedge fund manager Ray Dalio suggested putting 15% of investment portfolios into Bitcoin and gold together, institutional interest continued to rise. He did this because he was worried about America’s debt issue and currency devaluation. This is a huge jump from his earlier advice of 1–2% Bitcoin in 2022, which shows that more and more institutions are starting to see cryptocurrencies as a way to protect themselves from traditional financial dangers.
Bitcoin Consolidates Between $117K and $120K
Bitcoin stayed in its consolidation pattern between $117,000 and $120,000 during Tuesday’s trading session, and it looked like it would conclude the day below $118,000. Over the past three weeks, the price of the cryptocurrency has been compressed, causing intraday volatility to drop by around 45%. The daily high-to-low range has gone from $4,200 on July 14 to about $2,300 now. This technical compression, along with the tightening of the Bollinger Bands, usually happens before big swings in either direction.
Before the Federal Reserve meeting on Wednesday and the much-anticipated White House report on crypto policy and strategic Bitcoin reserves, it looks like many in the market are lowering their risk exposure. CME Group’s FedWatch program says there is a 98% chance that rates will stay in the 4.25–4.5% level, even though President Trump is pushing for reduction right away. The upcoming White House report is likely to show how many Bitcoins the US government owns and maybe explain procedures toward setting up an official strategic Bitcoin reserve. This could be a big reason for price changes.
XRP Experiences Selling Pressure
XRP saw a lot of selling pressure, dropping 15% from its peak of $3.66 on July 18 to its current level of roughly $3.12. This was also accompanied by a $2.4 billion drop in futures open interest from its all-time high of $11.2 billion. This drop in leveraged holdings shows that some speculative excess has been removed from the market. However, open interest is still 48% greater than it was a month ago in XRP terms, which means that traders are still holding a lot of bets.
XRP futures markets are still neutral, even if prices have dropped recently. Monthly contracts are trading at a 6–8% annualized premium to spot prices, which is in the normal 5–10% range for balanced market circumstances. However, there are still serious worries about the XRP Ledger’s adoption numbers. According to RWA.xyz data, it only has $134 million in tokenized assets, which puts it well behind competitors like Avalanche, which has $190 million. Also, decentralized exchange activity on the XRP Ledger doesn’t put it in the top 50 blockchains by volume, which raises questions about whether there will be enough demand above the important $3 resistance level, even though there is still talk of possible ETF approvals and partnerships with big companies.
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