Daily Crypto Signals: Bitcoin Holds $109K, Trump’s WLFI Stake Hits $5B, XRP Faces Critical Support Test
The crypto market witnessed significant developments today as Bitcoin maintained its position above $109,000 despite whale rotation into ETH
Quick overview
- Bitcoin remains above $109,000 despite whale activity shifting towards Ethereum, indicating potential bearish sentiment.
- The Trump family's stake in World Liberty Financial surged to $5 billion following a significant token unlock, attracting considerable market interest.
- XRP is struggling near a crucial support level of $2.70, with declining on-chain activity and futures open interest suggesting waning investor confidence.
- Despite recent price drops, crypto funds saw $2.5 billion in new investments, highlighting a disconnect between institutional interest and market sentiment.
The crypto market witnessed significant developments today as Bitcoin BTC/USD maintained its position above $109,000 despite whale rotation into Ethereum ETH/USD, while Trump family’s World Liberty Financial stake surged to $5 billion following a major token unlock, and XRP approached a crucial support level at $2.70.
Crypto Market Developments
Today, the cryptocurrency market sent contradictory signals as institutional investment flows went against how well the spot market was doing. Despite big drops in Bitcoin and Ethereum prices, crypto funds brought in $2.5 billion in new money. This shows how organized investment products don’t always match up with how the market feels right now. Exchange-traded products were the main drivers of this trend, bringing in $2.48 billion, which was a shift from the previous week’s $1.4 billion outflows. This shows that institutions are once again interested in digital assets.
Derivative markets, on the other hand, were busier than usual, especially around World Liberty Financial tokens, where open interest was close to $950 million before the scheduled token unlocks. The Crypto Fear & Greed Index showed that the overall market mood had moved into “fear” area, dropping to 46 from neutral levels. This shows that investors are becoming more cautious as the market continues to be volatile.
Bitcoin Continues Rangebound Trading
Bitcoin is still trading in a small 2.3% range around $109,000. It is having a hard time keeping up its momentum after dropping from $112,500 on Friday. Whale activity is putting more and more pressure on the cryptocurrency, and long-term holders are starting to move big positions into Ethereum. On August 21, a well-known Bitcoin whale who had held for more than five years sold $4 billion worth of BTC on the decentralized exchange Hyperliquid. This is a worrying sign that key players are losing faith in the currency.
Technical signs show that more people are becoming negative, as Bitcoin put options are trading at a 7% premium over call options on Deribit. The monthly futures annualized premium is at a neutral 7%, which is the same as it was last week. This shows that there isn’t much bullish conviction. $390 million in leveraged long positions will be liquidated if Bitcoin drops below $107,000, and US spot Bitcoin ETFs had $127 million in net outflows on Friday. This adds to worries. The short-term picture hinges a lot on incoming US jobs statistics. If unemployment rises, the Federal Reserve may have to cut interest rates faster, which might help risk-on assets like Bitcoin.
XRP Open Interest on the Decline
XRP lost further ground from last week’s sell-off, dropping 1.78% in 24 hours to $2.78 on Monday. The altcoin is having a hard time since on-chain activity is getting worse. Active addresses have dropped from 50,000 in mid-July to about 19,250 now. This big drop shows that people are less willing to take risks, which makes XRP more likely to keep being sold.
The gloomy sentiment is backed up by the fact that futures open interest has declined from $10.94 billion to $7.7 billion in the last several weeks, which suggests that investors are losing faith. Technical analysis shows that XRP has been stuck in a descending triangle pattern since the surge to $3.66 in July. This pattern is usually seen as a hint of a bearish reversal. The triangle’s flat support line is at $2.70, which is the crucial support level. If this level is not held, the price might drop to $2.08, which would be a possible 25% drop from where it is now. If bulls can hold $2.70, though, XRP might go for the upper trendline at $3.09, which is also the 50-day simple moving average.
Trump Family’s Stake in WLFI Surges to $5B on Token Launch
The Trump family’s stake in World Liberty Financial rose to around $5 billion after a big token unlock on Monday, making it the most talked-about company. DT Marks DEFI LLC and “certain family members” of President Trump had 22.5 billion WLFI tokens when the company released 24.6 billion tokens to set up the initial circulating supply. The unlock quickly raised WLFI’s price to $0.40, but it settled around $0.21 at the time of publication. This still gave the Trump family holdings a huge $5 billion value.
Before the unlock, the derivative markets were quite interested in WLFI. Open interest rose to about $950 million before falling to $887 million, which is still a 45% rise in 24 hours. The amount of trading on WLFI derivatives went up by more than 535% to $4.54 billion, making it the fifth-most traded crypto derivative. This action shows how much interest there is in the Trump-backed project, which started in September 2024 during his presidential campaign.
Lawmakers are still looking into the project because they think that Trump’s several crypto businesses, like his memecoin and Bitcoin mining company, could have an effect on US government regulations because of their financial ties to the president. Also, American Bitcoin, the Trump family’s mining business, will go public on Tuesday by merging with Gryphon Digital. This will add to their crypto assets.
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