Bitcoin and Ethereum Prices Drop Amid Risk Aversion
Bitcoin (BTC) is falling toward $86,000 on Wednesday. The crypto market faces broad risk aversion. Ethereum (ETH) stays above $2,900 but is capped near $3,000. This is due to fading interest from institutional investors. Ripple (XRP) is trading just below $1.90, despite steady inflows into its Exchange Traded Funds (ETFs).
ETF Inflows and Outflows Highlight Market Trends
XRP spot ETFs saw $8.5 million in new inflows on Tuesday. Bitwise’s XRP ETF led with $6.2 million, followed by Franklin Templeton’s XRPZ with $2.1 million. Since their launch on November 13, XRP ETFs have not had outflows. Total inflows now reach over $1 billion, with net assets at $1.16 billion, according to SoSoValue.
In contrast, Bitcoin spot ETFs experienced $277 million in outflows on Tuesday. This is the second straight day of withdrawals by institutional investors. On Monday, Bitcoin ETFs lost nearly $358 million. Total net inflow volume for Bitcoin ETFs stands at $57.27 billion with net assets of $114.28 billion.
Ethereum ETFs had outflows for the fourth day in a row. About $224 million left Ethereum ETFs on Tuesday. BlackRock’s ETHA ETF saw the largest outflows at $221 million, followed by Fidelity’s FETH with $3 million. Ethereum ETFs hold $18.17 billion in net assets with cumulative inflows of $12.64 billion, SoSoValue reports.
A recent report from K33 Research notes that risk-off sentiment will likely continue. The Federal Reserve’s rate cut and cautious comments have kept uncertainty high. Futures markets say there is a 73% chance that rates hold steady at the next Fed meeting on January 28, and a 47.6% chance of no change in March.
Technical Indicators Show Bearish Outlook for Bitcoin, Ethereum, and XRP
Bitcoin trades just above $86,000 but faces downward pressure. Key moving averages—50-day at $94,829, 100-day at $100,415, and 200-day at $102,702—indicate a bearish trend. The Relative Strength Index (RSI) dropped to 38, showing weak momentum. The Moving Average Convergence Divergence (MACD) may soon confirm a sell signal. If confirmed, Bitcoin could drop further toward $80,600, tested last on November 21.
Ethereum remains above $2,900 but struggles to break the $3,000 resistance zone. It trades below its 50-day ($3,248), 100-day ($3,451), and 200-day ($3,428) moving averages. The RSI is near 40, indicating bearish momentum. The MACD might confirm a sell signal if the blue line crosses below the red. A break below $2,900 could push prices down to November’s low of $2,623. Still, recovery above $3,000 is possible if buyers step in.
XRP trades below $1.90, and selling pressure is high. Its RSI is approaching oversold levels, and the MACD confirmed a sell signal. The next support level is $1.82, last tested in November. A break below this could trigger a drop to April’s low of $1.61. Despite bearish trends, XRP ETFs have steady inflows, encouraging potential retail interest and a possible price recovery above $2.00 soon.
