XRP News Today: Crypto Market Drops 2.3% as Bitcoin ETFs See $342.25 Million Outflow

The cryptocurrency market experienced a sudden downturn on Friday, with major digital assets such as Bitcoin, Ethereum, and Solana facing sharp daily pullbacks. Bitcoin (BTC) dropped 0.3% in the last 24 hours to $109,029, but it still held a weekly increase of 1.5%. Ethereum (ETH) slumped by 0.9% on the day to $2,568.31, but it still registered a 5.3% increase over the week. Solana (SOL) declined 1.6% on Friday to $153.10, but the token gained 8.7% over the week, making it one of the strongest performers among major cryptocurrencies.

Despite the daily red, several altcoins posted significant surges. Bedrock (BR) jumped 60.7% to $0.128, trading over $472 million in volume. FUNToken (FUN) climbed 38.8% to $0.013, with $94 million in turnover. Humanity (H) increased by 25.9% to $0.08199, recording $318 million in daily activity. QANplatform (QANX) gained 24.4% to $0.03821. Nobody Sausage (NOBODY) advanced 17.3% to $0.03904.

While leading coins saw daily pullbacks, several altcoins posted significant surges. Bedrock (BR) jumped 60.7% to $0.128, trading over $472 million in volume. FUNToken (FUN) climbed 38.8% to $0.013, with $94 million in turnover. Humanity (H) increased by 25.9% to $0.08199, recording $318 million in daily activity. QANplatform (QANX) gained 24.4% to $0.03821. Nobody Sausage (NOBODY) advanced 17.3% to $0.03904.

Despite Friday’s sudden pullbacks, Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Solana (SOL), BNB (BNB), Dogecoin (DOGE), and TRON (TRX) all closed the week with gains. Meanwhile, speculative altcoins continued to draw strong attention with eye-catching daily spikes.

This sudden decline in prices was accompanied by a notable shift in investor sentiment, particularly among institutional investors who had been consistently pouring capital into Bitcoin ETFs. The outflow from US Bitcoin ETFs was particularly pronounced, with a significant $342.25 million exiting these funds on July 1. This marked the end of a 15-day inflow streak, during which these ETFs had been attracting capital. The reversal in investor behavior coincided with a bearish momentum in the Bitcoin price, which had been slipping below key support levels.

The bearish momentum in the Bitcoin price has been a significant factor in the recent outflow from US Bitcoin ETFs. The price of Bitcoin had been on an upward trajectory, but recent movements have seen it slip below key support levels, leading to a more cautious stance among investors. This bearish momentum has been reflected in the net outflows from Bitcoin ETFs, as investors adopt a more risk-averse approach.

The end of the 15-day inflow streak and the subsequent outflow from US Bitcoin ETFs highlight the sensitivity of institutional investors to market conditions. The recent bearish momentum in the Bitcoin price has led to a shift in sentiment, with investors adopting a more cautious stance. This shift in sentiment is reflected in the net outflows from Bitcoin ETFs, as investors seek to protect their capital in the face of market volatility.

In contrast, spot Ethereum ETFs recorded a third consecutive day of net inflows. On Tuesday, ETH-focused funds collectively attracted $40.68 million. The majority of these inflows came from BlackRock’s ETHA, which posted $54.84 million in net additions, and Grayscale’s ETHE, which added $9.96 million. These gains were partially offset by $24.11 million in outflows from Fidelity’s FETH.

The sharp reversal in Bitcoin ETF flows coincided with the passage of a sweeping $3.3 trillion spending package by the U.S. Senate. Despite lobbying from pro-crypto lawmakers, the legislation did not include any specific provisions related to Bitcoin, crypto mining, or staking, disappointing portions of the digital asset industry. The absence of crypto-related language in the legislation, despite initial optimism, may have contributed to the profit-taking seen across Bitcoin-related funds.

The broader cryptocurrency market reacted by dropping nearly 2.3% to an intraday low of $3.36 trillion. Bitcoin (BTC) dropped close to 2% to a session low near $105,000. This indicates that bullish traders either closed or were forced out of their positions, likely securing profits or limiting downside exposure, while bearish positioning remained intact.

Historically, the third quarter has underperformed relative to other periods, as noted by analysts. Since 2013, Bitcoin has averaged just a 5.47% gain in Q3, making it the weakest of the four quarters in terms of historical returns. This trend may be contributing to the cautious repositioning among investors. When writing, Bitcoin had shed some of its intraday losses and was back above $107k, up nearly 40% from its year-to-date low of $76,300 seen in early April.

The recent market movements highlight the volatility and sensitivity of the cryptocurrency market to various factors, including regulatory developments and broader economic conditions. Investors are advised to remain cautious and closely monitor market conditions as they navigate the current landscape.