The ongoing trade and tariff wars, particularly with China, continue to have a negative impact on the market sentiment. Both the stock market and crypto assets like Bitcoin are experiencing significant declines. This week, Bitcoin ETFs have seen massive outflows, indicating a lack of investor confidence in the cryptocurrency market.
On Monday, over $500 million left Bitcoin ETFs, followed by a staggering $11 billion outflow on Tuesday, the largest in history. Wednesday saw another record with $754 million leaving the Bitcoin ETFs, with the BlackRock Bitcoin ETF being particularly affected. In response to the outflows, BlackRock had to sell a record amount of Bitcoin on Wednesday to fulfill the withdrawal requests, marking the largest single-day Bitcoin sale for the ETF provider.
In terms of Bitcoin price, the largest cryptocurrency has dipped below $80,000, leading to a ripple effect on most altcoins. XRP, for example, has experienced a more than 9% decline and is dangerously close to dropping below the $2 mark. Over the last 24 hours, XRP has confirmed a daily candle close below a crucial support zone between $2.25 and $2.30. Analysts like Josh of Crypto World have highlighted this area as a key level for traders, with the next significant support lying between $1.95 and $2.
If XRP’s price falls below the $2 level, specifically under $1.95 or $1.90, it could signal further major losses for the cryptocurrency. This downward trend could lead to much lower price levels in the near future, impacting investor portfolios.
XRP is currently in a bearish trend, characterized by breaking below support levels, rejecting resistance, and forming lower highs and lows. This bearish price action suggests a potential for further downward movement in the short term.
As often seen with major altcoins, XRP’s price action tends to mirror that of Bitcoin and the broader stock market. With Bitcoin and stocks showing weakness, many altcoins, including XRP, are also experiencing downward pressure in the current market environment.
To stay informed about the latest developments in the crypto world, including breaking news, expert analysis, and real-time updates on trends in Bitcoin, altcoins, DeFi, NFTs, and more, it is essential to stay updated with reliable sources and market analysis. Stay ahead of the curve to make informed investment decisions in the ever-changing cryptocurrency landscape.