Bitcoin News Today: Bitcoin Holds Above $88K as XRP ETFs Defy Outflows

Bitcoin (BTC) and Ethereum (ETH) edged higher on Monday, with prices trading above $88,000 and $2,900 respectively, after a volatile week marked by ETF outflows and macroeconomic uncertainty. Ripple's XRP also showed resilience, trading above $1.82 and supported by consistent ETF inflows. The US Consumer Price Index (CPI) data, which came in below expectations, sparked renewed investor optimism in risk assets.

The broader crypto market remains under pressure from ETF outflows, with Bitcoin ETFs recording $338.81 million in net outflows by Thursday - the largest weekly outflow since November 21. Institutional selling has contributed to Bitcoin's consolidation near key support levels. Meanwhile, Ethereum ETFs also posted outflows of $97 million on Thursday, extending a six-day streak of outflows.

XRP, however, has bucked the trend. Its spot ETFs have posted $1 billion in cumulative inflows since launch, with no outflow days recorded. This inflow streak now stands at 30 consecutive days, a rarity for new crypto investment products. Ripple CEO Brad Garlinghouse has highlighted this as a sign of growing institutional confidence in XRP's utility and adoption.

ETF Outflows and Corporate Buying Create Tension in Bitcoin Markets

Bitcoin ETF outflows have become a major factor in the recent price correction. Spot ETFs have seen $3.48 billion in outflows in November alone, according to SoSoValue data. These outflows have contributed to Bitcoin's pullback from October highs and weighed on investor sentiment. The continued pressure from ETF redemptions raises the risk of further downside correction, particularly if the trend intensifies in the coming weeks according to FXStreet analysis.

Despite the outflows, corporate demand for Bitcoin remains robust. Strategy Inc. (MSTR), led by Michael Saylor, continued its aggressive accumulation, purchasing 10,645 Bitcoin for $980 million this week. This follows a previous purchase of 10,624 BTC, signaling the firm's long-term conviction in the digital asset even amid market weakness. Other public companies are also increasing their BTC holdings, with the top 20 firms now holding over 2.88 million BTC according to FXStreet data.

Macroeconomic Catalysts and Risk-On Sentiment

The release of US inflation data on Thursday provided a short-term boost to Bitcoin. The headline CPI came in at 2.7% year-on-year, below the expected 3.1%, while the core CPI also missed forecasts. These figures have stoked speculation that the Federal Reserve may begin cutting interest rates earlier than expected. The market is now pricing in a 26.6% chance of a rate cut at the January meeting.

Such a shift in monetary policy could drive risk-on sentiment and benefit riskier assets like Bitcoin. Lower interest rates typically reduce the cost of capital, making crypto investments more attractive to investors. However, the extent of the impact will depend on how quickly the Fed moves and the broader economic environment.

XRP ETFs Outperform Amid Mixed Altcoin Performance

While Bitcoin and Ethereum have faced headwinds, XRP has shown a different trajectory. XRP ETFs have attracted steady inflows, with cumulative net inflows exceeding $1 billion as of December 16. This performance has outpaced Ethereum and even BlackRock and Fidelity, which do not have XRP ETF offerings. XRP ETFs have now recorded 30 consecutive days of inflows, a rare achievement in the crypto market.

The sustained institutional buying is being viewed as a signal of confidence in XRP's utility in cross-border payments and liquidity infrastructure. Ripple's CEO has emphasized that the inflows reflect strategic, rather than speculative, allocations. Analysts note that the ETF demand is acting as a buffer, offsetting some of the selling pressure in spot markets.

Technical and Sentiment Signals Point to Volatility

Bitcoin's price has been consolidating near $87,000, with bulls eyeing a breakout above a descending trendline. The Relative Strength Index (RSI) has risen to 44, suggesting that bearish momentum is easing. However, the Fear and Greed Index has fallen to 16, indicating extreme fear among traders. This deep risk-off phase aligns with the ETF outflows and weak momentum observed in the market according to FXStreet analysis.

For XRP, the weekly RSI has dropped to 33, signaling that the asset is approaching oversold territory. Historically, such levels have been associated with strong price rebounds. However, the market remains cautious, with sellers continuing to offset inflows. Analysts suggest that while the technical indicators are positive, broader market conditions will play a crucial role in determining the direction of XRP.

Analysts Cautious on 2026 Outlook Amid Mixed Signals

Market strategists are cautiously optimistic about the 2026 outlook for crypto, despite current volatility. Bank of America's Michael Hartnett has highlighted the potential for a lower-inflation, lower-yield environment, which could benefit risk assets. However, he warns that AI capital expenditure growth could face headwinds from rising US unemployment and bond market pressures according to Investing.com.

For Bitcoin, the long-term bullish structure remains intact, with institutional adoption and ETF inflows expected to continue into 2026. The year has seen mixed flows, with strong early inflows followed by Q4 outflows amid price corrections. Despite this, the overall adoption trend supports a constructive outlook for the asset class according to FXStreet forecast.