Daily Crypto Signals: Bitcoin Eyes $120K Target, XRP Ready for ETF Rally

Quick overview

The cryptocurrency market is experiencing significant momentum as Bitcoin BTC/USD trades near $116,692 with strong institutional support, while XRP XRP/USD consolidates above $3 amid growing accumulation and the imminent launch of its first U.S. ETF. Key developments include Google’s unveiling of an AI-powered payment protocol with stablecoin support and Deutsche Börse’s new institutional trading solution.

Crypto Market Developments

There have been a number of institutional breakthroughs in the crypto world today that show that it is becoming more popular with the general public. Google has released an open-source protocol that lets AI apps send and receive payments, including stablecoin transactions. This was made possible by a partnership with Salesforce, American Express, and more than 60 other firms. Coinbase and the Ethereum Foundation worked together to launch the effort. It relies on Google’s Agent2Agent Protocol and is a big step toward connecting AI agents with decentralized finance protocols.

At the same time, Crypto Finance, a subsidiary of Deutsche Börse Group, unveiled AnchorNote, an off-exchange settlement solution that aims to make capital more efficient for institutional crypto investors. The system lets businesses trade on numerous platforms without taking their assets out of custody. It started in Switzerland and plans to expand to other European countries. In addition, U.S. politicians are meeting with 18 crypto industry leaders, such as Michael Saylor of MicroStrategy and Tom Lee of Fundstrat, to go forward with the BITCOIN Act. This act calls for the purchase of one million Bitcoin over five years for a Strategic Bitcoin Reserve.

Bitcoin Ready to Rally to $120,000?

Three important variables are driving Bitcoin’s price growth, which could lead to gains of up to $120,000. The biggest reason is that the amount of Bitcoin held by exchanges has dropped dramatically. Glassnode says that there were net withdrawals of 44,000 BTC in September alone.

This sudden drop in easily accessible supply has made immediate liquidity tighter, which could mean less short-term selling pressure near the current $116,000 level. There are still over 2.96 million BTC on exchanges, but a lot of this supply is not actively offered on order books. This is because many clients keep their deposits there for security reasons or to take advantage of yield chances.

The second main reason for support is that institutional demand for spot Bitcoin ETFs has stayed strong, with $2.2 billion in net inflows over the past few trading days. This is more than ten times the amount of new Bitcoin created every day, which is helping to restore investor confidence after gold’s 11% rise since August.

The Federal Reserve’s expected decision on interest rates makes things much more complicated. Bond markets are pricing in a 96% possibility of a rate decrease to 4.25%. However, signs of financial stress are starting to show, such as the $1.5 billion borrowed from the Fed’s Standing Repo Facility and rising overnight lending rates. These could make Bitcoin even more appealing as a way to protect against traditional market instability.

XRP Price Prediction: $5-7 Next Target?

Analysts say that XRP is at a critical accumulation phase that is the “last chance” for investors to get ready for a possible bull run in the fourth quarter. The token has done better than expected in September by regaining and staying above the psychological $3 barrier, showing that it can handle what was thought to be a sluggish month. Analyst Austin Hilton says that there is a lot of whale accumulation going on since tokens are being taken off of exchanges.

For example, Coinbase’s reserves are said to have dropped by 90% as big investors relocate their assets to long-term storage. This drop in supply, together with four major exchanges, including Binance, adding 1.2 million coins to meet coordinated institutional demand, signals a possible supply shock that might cause prices to rise.

The launch of the first U.S. spot XRP ETF this week is a big step forward for institutional adoption. The REX-Osprey XRP ETF (XRPR) from REX Shares will be the first fund in the U.S. to give investors direct exposure to spot XRP. However, Bloomberg analyst James Seyffart says it’s not a “pure” spot ETF because it will hold both direct spot positions and other worldwide XRP ETFs. Seven more fund issuers are waiting for the SEC to approve 100% spot XRP ETFs.

They hope to get clearance in October. Adam Stokes, a market analyst, has, however, given the community’s $10,000 predictions a reality check, saying they are unrealistic because there isn’t enough global capital. He has also kept a bullish but realistic forecast of $5-$7 as achievable targets that would be new all-time highs for the asset.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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