Daily Crypto Signals: Bitcoin Retreats Below $86K, XRP Struggles Under $1.90 Despite Strong ETF Demand
The cryptocurrency market experienced significant selling pressure as Bitcoin dropped below $86,000 amid $2.78 billion in whale selling and
Quick overview
- The cryptocurrency market faced significant selling pressure, with Bitcoin dropping below $86,000 amid $2.78 billion in whale selling and macroeconomic concerns.
- Despite nearly $1 billion in ETF inflows over 20 days, XRP failed to maintain the crucial $2 support level, extending its bearish trend.
- Institutional interest in digital asset investment products remained strong, with the US leading inflows, but a severe market downturn led to the liquidation of $527 million in leveraged positions.
- JPMorgan launched its first tokenized money market fund on the Ethereum blockchain, marking a significant institutional development in the crypto space.
The cryptocurrency market experienced significant selling pressure as Bitcoin BTC/USD dropped below $86,000 amid $2.78 billion in whale selling and macroeconomic concerns, while XRP XRP/USD failed to hold the $2 support level despite recording nearly $1 billion in consecutive ETF inflows over 20 days.
Crypto Market Developments
This week, the digital asset market encountered difficulties due to a massive correction brought on by excessive leverage and larger macroeconomic uncertainty. Even though net inflows totaling $864 million into cryptocurrency exchange-traded products were recorded for the third week in a row, investor anxiety over inflation and speculation over the Federal Reserve’s leadership caused the market to become cautious.
A significant amount of capital was drawn to digital asset investment products; the US led regional inflows with $796 million, followed by Germany with $68.6 million and Canada with $26.8 million. Approximately 98.6% of all inflows into digital asset investment products this year have come from these three nations. Nevertheless, a severe market downturn that resulted in the liquidation of nearly $527 million in leveraged positions in less than a day was unavoidable despite the institutional interest.
Growing worries about the debt levels in the artificial intelligence business and tighter liquidity circumstances contributed to the downturn. Tech companies’ excessive dependence on debt markets to finance AI initiatives has reached a risky stage, according to hedge fund behemoth Bridgewater Associates, whose co-chief investment officer Greg Jensen noted a “reasonable probability” of an impending bubble. Traders increased their cash positions and withdrew their cryptocurrency holdings due to this risk-off attitude.
Through its $4 trillion asset management division, JPMorgan introduced its first tokenized money market fund on the Ethereum ETH/USD blockchain, marking a significant institutional step. The most globally systemically important bank to launch such a product on a public blockchain is the My OnChain Net Yield Fund, which is traded under the ticker MONY. In the meanwhile, the Financial Conduct Authority will be in charge of bringing cryptocurrency businesses under the UK’s current financial regulations by October 2027.
Bitcoin Dips to $85,000 Amid Whale Selloffs
As aggressive dip-buying by retail and mid-sized investors was overpowered by whale selling, Bitcoin continued its downward trend, falling below $86,000. Retail wallets accumulated $169 million, while mid-sized players added $305 million in net spot positions, according to order flow statistics that showed a clear disparity in market action. But with a huge cumulative negative volume delta of $2.78 billion, whale wallets controlled the sell-side, causing a liquidity mismatch that was impossible for smaller players to overcome.
With the commodity breaking out of a rising wedge pattern and invalidating its short-term bullish trend below $87,600, Bitcoin’s technical structure has drastically weakened. The short-term holder spend output profit ratio fell below 1 to roughly 0.99, meaning that coins held for fewer than 155 days are typically being sold at a loss, according to onchain measurements, which present an equally alarming picture. Although analysts stress that a prolonged recovery necessitates the measure to regain and hold above 1, this capitulation signal indicates that selling pressure has peaked. Weekly inflows of $522 million into bitcoin investment products have brought year-to-date totals to about $27.7 billion, which is still less than the $41 billion recorded in 2024.
XRP Fails to Hold $2 Support Despite Strong ETF Inflows
Despite its price’s inability to sustain crucial support levels, XRP showed resilience in institutional demand. After an unprecedented 20 days of inflows since debut, Spot XRP exchange-traded funds amassed $990.9 million in total assets, surpassing $1.2 billion. Leading with great momentum, the Franklin XRP ETF reached $175 million in net assets after adding $8.7 million on Friday alone. Analyst Bitcoinsensus noted that “institutional demand for XRP is heating up fast” as rival products struggled with outflows, indicating that this institutional appetite greatly outpaced Bitcoin and Ether ETFs.
Even with this outstanding ETF performance, the price movement of XRP revealed a different picture. For the second time since November 21, the asset fell below the critical $2 support level, extending its bearish trajectory by more than 11% in just ten days. Glassnode’s UTXO realized price distribution shows fewer clusters of buy opportunities below $1.90, and technical analysis indicates weak support at the present $1.93 level. At $1.78, where roughly 1.85 billion XRP were previously purchased, there is the next major support. Analysts predict a possible drop toward $1.61 or perhaps the 200-week exponential moving average at $1.40, which is the final significant line of defense, if this level collapses. The weekly addition of $46.9 million to XRP investment products brought the total inflows for the year to over $3.18 billion.
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