Daily Crypto Signals: Bitcoin Eyes $129K Target, XRP Tests $3 Amid ETF Speculation
Bitcoin traders are positioning for a potential breakout to $129,000 as Federal Reserve rate cut expectations rise following shocking US job
Quick overview
- Bitcoin traders are anticipating a breakout to $129,000 as expectations for Federal Reserve rate cuts increase following significant job data revisions.
- XRP is nearing the $3 mark, buoyed by a 95% chance of ETF approval, but faces challenges with adoption on its native ledger.
- The recent job data revision led to a drop in Bitcoin's price below $111,000, yet analysts remain bullish on its potential to reach new all-time highs.
- Despite optimism around ETFs, XRP struggles with low usage on its own ledger, lagging behind other major cryptocurrencies in market performance.
Bitcoin BTC/USD traders are positioning for a potential breakout to $129,000 as Federal Reserve rate cut expectations rise following shocking US jobs data revisions, while XRP XRP/USD approaches the $3 level driven by 95% odds of ETF approval but faces adoption challenges on its native ledger.
Crypto Market Developments
There were big changes in the bitcoin market this week when the Bureau of Labor Statistics made a historic change that cut 911,000 jobs from payroll data. Democratic senators released a different plan for crypto market structure legislation that focuses on protecting consumers and working together across party lines. At the same time, Nasdaq made a strategic collaboration with Gemini by investing $50 million in the exchange’s planned IPO. This gave Nasdaq access to custody and staking services. Sky (previously Maker) joined a fierce bidding war in the DeFi industry to launch Hyperliquid’s USDH stablecoin, which has a 4.85% yield and works on several chains.
Bitcoin at $111,000 After Jobs Data Revision
Bitcoin fell below $111,000 after the big jobs revision, which was similar to what happened to the rest of the stock market as recession worries grew. But the 1990s recession shows that asset owners could “reap the rewards” as the Federal Reserve is ready to lower rates sharply. Bond traders think there is a 92% chance of a 25 basis point rate decrease in September, and they think there will be two more cuts by the end of the year. The Federal Reserve cut interest rates from 8.25% to 3% during the 1990–1991 recession, even though inflation was still high. This caused the stock market to rise by 30% after it had fallen.
Bitcoin is ready to break over its all-time high of $124,500, and analysts are looking at the 1.618 Fibonacci extension at $129,000 as a possible 12-15% gain. The cryptocurrency has bounced back from the lower trendline of its rising wedge and is still trading above the 20-week exponential moving average around $108,500, which is a sign that people are still bullish. If the price closes over the $115,000-$116,000 resistance zone, the rally might pick up speed and reach new all-time highs. The current market structure shows less leverage and more defensive posture. In the past, this has led to stronger uptrends when too many long positions have cleared out.
Can XRP Overcome $3 Resistance?
Performance XRP hit a two-week high of $3.04 before being turned down. This was due to speculation about the possible certification of a US ETF, with Bloomberg analysts giving it a 95% chance of success. The SEC’s final judgment is due in late October. However, REX-Osprey products may come sooner, employing ETF and ETN structures that are identical to those that are already available. More institutions are becoming involved, as XRP futures aggregate open interest has risen 5% each month to 2.69 billion XRP ($7.91 billion), and Chicago Mercantile Exchange contracts have jumped 74% to 386 million XRP. This shows that more professional fund managers are getting involved.
Even if there is a lot of hope for ETFs, XRP has a lot of problems getting people to use its own XRP Ledger (XRPL). The token has been the same since August, while the rest of the altcoin market has gone up 14%. Major cryptocurrencies like Solana and Cardano have gone up 28% and 19%, respectively. According to RWA.xyz data, XRPL barely makes about 2% of all Real World Assets. It is behind lesser blockchains like Avalanche, Stellar, and Aptos. Ripple’s RLUSD stablecoin also crossed $700 million in assets, but around 90% of that was produced on Ethereum instead of XRPL. This means that there isn’t much direct demand for the native ledger. With only $100 million locked up in XRPL, it may be hard to keep up the momentum toward the $3.60 target, even though there is short-term speculation driven by ETFs.
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