The cryptocurrency market saw a turbulent week as fluctuating market conditions influenced inflows and outflows across various digital assets. Bitcoin (BTC) products led the way with $214 million in net inflows, while Ethereum (ETH) funds saw a significant loss of $255 million. Ripple (XRP) emerged as a standout, attracting $41 million, fueled by growing optimism surrounding potential ETF approvals.
XRP’s Resilience Amid ETF Approval Speculation
Macroeconomic factors, including the Federal Reserve’s recent actions, significantly impacted crypto markets last week. Early in the week, investors allocated $1 billion to crypto products, but sentiment shifted midweek due to strong U.S. economic data and hawkish Federal Reserve minutes. This led to $940 million in withdrawals from digital asset products.
Ethereum funds were hit the hardest, losing $255 million as investor confidence waned. Ethereum’s price dropped 18%, falling to $3,000, its lowest point in two months. Analysts speculate that expectations of fewer Fed rate cuts were a contributing factor to Ethereum’s underperformance.
In contrast, XRP demonstrated impressive resilience, with $41 million in inflows driven by hopes of a potential U.S. spot ETF approval. The market remains optimistic ahead of a key regulatory deadline later this month. Bloomberg analysts suggest that leadership changes could pave the way for favorable policy shifts that could boost XRP’s ETF prospects.
Despite Bitcoin’s 10% drop to $91,600, XRP maintained its price at $2.43, signaling relative strength. Analysts believe that increased regulatory clarity could solidify XRP’s position in the market.
Mixed Trends in the Crypto Market
While Bitcoin continues to face macroeconomic challenges, experts predict that spot Bitcoin ETFs will likely attract more institutional and governmental purchases in the coming months. This could drive Bitcoin’s price higher and mitigate the current market headwinds.
Bitcoin and Ethereum investment products have seen strong demand, with $42.9 billion attracted in 2024. However, Ethereum’s struggles are evident, with $274 million in net outflows. Despite this, shifting regulatory landscapes offer potential for future inflows, particularly for Bitcoin and XRP, which remain better positioned amid the uncertainty.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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