Bitcoin Falls Below $84,000 Amid ETF Outflows
Bitcoin (BTC) is trading under $84,000 on Friday after hitting a low of $82,000. The drop is due to uncertainty in the economy and cautious investor sentiment. Other major cryptocurrencies like Ethereum (ETH) and Ripple (XRP) are also falling. Weak retail demand and continuous sell-offs from Exchange-Traded Funds (ETFs) make recovery hard.
ETF Outflows Highlight Market Caution
Bitcoin spot ETFs saw outflows of $903 million on Thursday. This is the largest withdrawal since November 13. A small $75 million inflow on Wednesday was not enough to balance the outflows. US-listed Bitcoin ETFs have total net inflows averaging $57.4 billion and net assets of $113 billion, according to SoSoValue data.
Outflows show reduced risk appetite, especially from institutional investors. This trend could worsen if uncertainty about the Federal Reserve’s December meeting continues.
Ethereum ETFs also faced outflows totaling $262 million on Thursday. ETH ETFs only had one day of inflows this month. This shows that investors remain cautious about riskier assets.
In contrast, XRP ETFs continue to see inflows. On Thursday, $118 million went into XRP ETFs. Two US spot ETFs, Canary Capital’s XRPC and Bitwise’s XRP, have a total net inflow of $411 million and net assets of $385 million.
However, XRP’s derivatives market shows weakness. Futures Open Interest dropped to $3.57 billion on Friday from $3.79 billion the day before. Retail demand for XRP has not increased since mid-October.
Technical Analysis: Bitcoin and Altcoins in Bearish Zones
Bitcoin trades at $82,435, below its 50-, 100-, and 200-day moving averages. These averages are all moving down, signaling a bearish trend. The MACD indicator stays below the signal line and zero, showing strong downward momentum. The RSI at 21 points to oversold conditions, suggesting limited short-term rallies.
Ethereum trades at $2,679, also well below its main moving averages. Its MACD and RSI indicators suggest increasing bearish pressure. Although oversold, Ethereum remains weak while under these moving averages.
XRP is below its 50-, 100-, and 200-day averages, with the MACD and RSI confirming a bearish pattern. The RSI near 30 shows oversold levels. XRP faces resistance near $2.72. Bulls need a close above the 50-day EMA at $2.42 to ease pressure and target higher averages at $2.54 and $2.56.
