Cryptocurrency Today: Further Decline in Bitcoin, Ethereum, and XRP Prices Amid Growing Investor Risk Aversion:
- Bitcoin faces increasing pressure as institutional investors reduce their risk exposure. - The Ethereum price ceiling has been set at $3,000, influenced by outflows from exchange-traded funds and bearish signals. - XRP price has fallen toward the November support level at $1.82 despite slight cash inflows into exchange-traded funds.
Bitcoin (BTC) is approaching $86,000 USD as of this report on Wednesday, amid a general risk-off sentiment in the cryptocurrency market. Ethereum (ETH) remains above $2,900 USD, but its rise is limited to $3,000 USD due to waning institutional interest. Meanwhile, Ripple (XRP) is trading just below $1.90 USD, despite moderate but steady inflows into exchange-traded funds (ETFs).
- Key Data: XRP increases fund flows into ETFs while both BTC and ETH experience outflows: XRP ETF cash inflows continued, with deposits totaling approximately $8.5 million on Tuesday. The Bitwise XRP ETF leads the list with cash inflows of around $6.2 million, followed by the Franklin Templeton XRPZ ETF with inflows of nearly $2.1 million. Total cash flows reached $1.01 billion, with net assets of $1.16 billion, according to SoSoValue data.
Since its debut on November 13, XRP ETFs have not experienced any outflows, confirming increasing institutional interest in alternative-asset-based cryptocurrency investment products.
XRP ETF Statistics | Source: SoSoValue
In contrast, spot Bitcoin ETFs recorded outflows of approximately $277 million on Tuesday, amid continued reluctance from institutional investors to take risks. This marks the second consecutive day of outflows, after investors withdrew nearly $358 million on Monday.
The current cumulative net inflow size is $57.27 billion, with an average net asset value of $114.28 billion.
Bitcoin ETF Statistics | Source: SoSoValue
Meanwhile, Ethereum ETFs (ETFs) continued a fourth day of outflows, with about $224 million withdrawn on Tuesday. The BlackRock ETHA fund recorded the largest outflows at $221 million, followed by the Fidelity FETH fund with inflows of around $3 million. SoSoValue data indicates that the total cumulative inflow volume reached $12.64 billion, with net assets of $18.17 billion.
Ethereum ETF Statistics | Source: SoSoValue
According to a report by K33 Research, risk aversion is likely to continue dominating the cryptocurrency market, especially after the Federal Reserve’s decision to cut interest rates in December, which was accompanied by a hawkish pause, and renewed macroeconomic uncertainty as the new year approaches.
Although the rate cut provided some short-term relief, the accompanying comments indicating a renewed "wait-and-see" stance by the Federal Reserve negatively impacted overall market sentiment. Futures markets currently indicate a 73% probability of no change in interest rates at the Federal Open Market Committee meeting scheduled for January 28, along with a 47.6% chance of no change at the March 18 meeting, according to K33 Research.
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Cryptocurrency Today: Further Decline in Bitcoin, Ethereum, and XRP Prices Amid Growing Investor Risk Aversion:
- Bitcoin faces increasing pressure as institutional investors reduce their risk exposure.
- The Ethereum price ceiling has been set at $3,000, influenced by outflows from exchange-traded funds and bearish signals.
- XRP price has fallen toward the November support level at $1.82 despite slight cash inflows into exchange-traded funds.
Bitcoin (BTC) is approaching $86,000 USD as of this report on Wednesday, amid a general risk-off sentiment in the cryptocurrency market. Ethereum (ETH) remains above $2,900 USD, but its rise is limited to $3,000 USD due to waning institutional interest. Meanwhile, Ripple (XRP) is trading just below $1.90 USD, despite moderate but steady inflows into exchange-traded funds (ETFs).
XRP ETF cash inflows continued, with deposits totaling approximately $8.5 million on Tuesday.
The Bitwise XRP ETF leads the list with cash inflows of around $6.2 million, followed by the Franklin Templeton XRPZ ETF with inflows of nearly $2.1 million. Total cash flows reached $1.01 billion, with net assets of $1.16 billion, according to SoSoValue data.
Since its debut on November 13, XRP ETFs have not experienced any outflows, confirming increasing institutional interest in alternative-asset-based cryptocurrency investment products.
XRP ETF Statistics | Source: SoSoValue
In contrast, spot Bitcoin ETFs recorded outflows of approximately $277 million on Tuesday, amid continued reluctance from institutional investors to take risks. This marks the second consecutive day of outflows, after investors withdrew nearly $358 million on Monday.
The current cumulative net inflow size is $57.27 billion, with an average net asset value of $114.28 billion.
Bitcoin ETF Statistics | Source: SoSoValue
Meanwhile, Ethereum ETFs (ETFs) continued a fourth day of outflows, with about $224 million withdrawn on Tuesday. The BlackRock ETHA fund recorded the largest outflows at $221 million, followed by the Fidelity FETH fund with inflows of around $3 million. SoSoValue data indicates that the total cumulative inflow volume reached $12.64 billion, with net assets of $18.17 billion.
Ethereum ETF Statistics | Source: SoSoValue
According to a report by K33 Research, risk aversion is likely to continue dominating the cryptocurrency market, especially after the Federal Reserve’s decision to cut interest rates in December, which was accompanied by a hawkish pause, and renewed macroeconomic uncertainty as the new year approaches.
Although the rate cut provided some short-term relief, the accompanying comments indicating a renewed "wait-and-see" stance by the Federal Reserve negatively impacted overall market sentiment. Futures markets currently indicate a 73% probability of no change in interest rates at the Federal Open Market Committee meeting scheduled for January 28, along with a 47.6% chance of no change at the March 18 meeting, according to K33 Research.