XRP ETFs Are Booming—Is This the End for Bitcoin and Ethereum? Shocking Numbers Inside!

As of Friday, Bitcoin (BTC) is trading just above $90,000, reflecting a sense of lethargy in the broader cryptocurrency market. The digital asset rallied early this year but hit a wall at $94,789 on Monday, leading to profit-taking that saw it dip to $89,311 by Thursday. The situation is echoed across major cryptocurrencies, with Ethereum (ETH) struggling to maintain its position above $3,000 and Ripple (XRP) encountering significant pressure, hovering under $2.00.

Market sentiment remains cautious, as highlighted by the Crypto Fear & Greed Index from Alternative, which has indicated fear prevailing since the flash crash in October. While fear can sometimes indicate that investors are overly anxious—leading to potential buying opportunities—persistent sell-offs amid growing macroeconomic challenges could spell further decline for the crypto market.

ETF Activity Signals Market Sentiment

The recent performance of Bitcoin spot Exchange Traded Funds (ETFs) underscores this risk-averse sentiment. On Thursday, Bitcoin ETFs experienced outflows nearing $398 million, marking the third consecutive day of negative sentiment. Among the nine U.S.-listed ETFs, only two saw inflows: Bitwise's BITB with $2.96 million and WisdomTree's BTCW with $1.92 million. Cumulatively, Bitcoin ETFs have garnered inflows of $56.65 billion, with net assets totaling $117.66 billion, according to SoSoValue data.

Ethereum ETFs similarly extended their outflow streak, with approximately $159 million withdrawn on Thursday. After a brief resurgence at the beginning of the year with inflows of $174 million last Friday, $168 million on Monday, and $115 million on Tuesday, investor sentiment has begun to shift. Ethereum ETFs now report total inflows of $12.53 billion and net assets of $18.93 billion.

Meanwhile, XRP ETFs have resumed inflows, recording nearly $9 million on Thursday. This follows a significant outflow of approximately $41 million the day before. XRP ETFs have a cumulative inflow of $1.21 billion and net assets standing at $1.49 billion.

Bitcoin's technical indicators suggest that it is on shaky ground. The Relative Strength Index (RSI) is currently at 50, which could signal a move into bearish territory, heightening selling pressure below the $90,000 mark. Although the Moving Average Convergence Divergence (MACD) shows slight positive divergence, the diminishing green histogram bars indicate waning bullish momentum. The 50-day Exponential Moving Average (EMA) caps Bitcoin's upside at approximately $91,638, while the downward slopes of the 100-day EMA at $96,320 and the 200-day EMA at $99,929 emphasize a cautious market outlook. A close below $90,000 could accelerate losses, further entrenching fear in the crypto market.

Altcoin Technical Outlook: Ethereum and XRP Struggle

Ethereum remains marginally above $3,000 but has failed to breach the 50-day EMA at $3,127, with the RSI indicating a weakening bullish trend at 51. The MACD is reversing toward the mean line, and if this trend continues, investors may further reduce their exposure to Ethereum, exacerbating its challenges. Critical support at $3,000 must hold to facilitate an uptrend; if it breaks down, Ethereum could revisit the November low of $2,623. However, a sudden shift in sentiment could prompt a buy-the-dip approach, particularly if the price manages to close above the 100-day EMA at $3,298 and the 200-day EMA at $3,346.

On the other hand, XRP is trading at $2.10, testing the 50-day EMA support at $2.07, after being rejected from a weekly high of $2.41 on Tuesday. The RSI's current reading of 54 indicates a decline from overbought territory, signaling that bullish momentum is faltering. A close above the 50-day EMA could revive the uptrend, but a sustained break below this level could shift the outlook negatively. Key resistance lies at the 100-day EMA at $2.22, while the 200-day EMA at $2.34 poses further challenges.

In summary, the cryptocurrency market is grappling with a pervasive sense of fear, as indicated by recent ETF outflows and technical indicators. Investors and analysts will be watching closely to see if Bitcoin, Ethereum, and XRP can stabilize and regain momentum, or if they will continue to succumb to downward pressure amid a challenging macroeconomic backdrop.