XRP continues to face pressure as Bitcoin hovers below resistance levels and capital exits from crypto-linked ETFs accelerate, signaling broad uncertainty across digital asset markets.

Bitcoin’s Struggle Below $115K Sets the Tone

Bitcoin hovered near $113,700 on Thursday, retreating from earlier highs and failing to sustain momentum above the crucial $115,000 level. The 50-day moving average has become a persistent resistance point, limiting any upward breakout attempts and shaping a cautious sentiment across the crypto market.

Despite a slight 1% increase in total market capitalization to $3.86 trillion, analysts described the uptick as a temporary bounce rather than the foundation of a full-fledged rally. “We’re seeing underlying weakness in the market,” said Alex Kuptsikevich, chief analyst at FxPro. “Bitcoin’s inability to reclaim $115K underscores broader caution among traders.”

Mounting ETF Outflows Highlight Caution

Investor sentiment around ETFs has cooled notably. SoSoValue reported significant net outflows from Bitcoin spot ETFs—$523 million on August 19, $311 million on Wednesday, and another $192 million on Thursday. Ethereum-focused vehicles fared no better, with ether ETF withdrawals exceeding $500 million over the same span.

These outflows effectively reversed the prior week’s bullish inflows and are largely credited to profit-taking and post-peak asset liquidations, as pointed out by Kronos Research. Meanwhile, the broader equity market downturn continues to put pressure on high-volatility assets like crypto.

Market chart highlighting XRP’s softness alongside Bitcoin’s pullback.

Altcoin Metrics Reflect Softening Demand

Digital currencies beyond Bitcoin are mirroring the trend. Ethereum softened to $4,289—up only 0.4% for the day yet down over 7% from this month’s peak. A key indicator, active Ethereum wallet addresses, plummeted 28% since July 30, a sign of reduced participation by retail users.

Similarly, XRP dropped to $2.87, while Solana declined to $183, both shedding over 6% over the past week. These downtrends highlight a synchronized cross-crypto pullback as traders shy away from risk assets in the absence of fresh capital inflows.

Analysts indicate that a more dovish approach from the Federal Reserve could offer temporary relief. However, any upside could be muted unless supported by renewed market interest and volume.

Derivatives and Macro Pressures Add Headwinds

In derivatives market data, hedging behavior is clearly increasing. The 30-day delta skew for Bitcoin options surged to 12%, its highest in four months. This metric reflects growing demand for protective positions, further reinforcing the current cautious sentiment.

The attitude in the derivatives arena mirrors concerns surrounding broader macroeconomic themes. Ruslan Lienkha, chief of markets at YouHodler, noted that geopolitical and inflation-related pressures are driving the shift. “There’s no major negative crypto-native event causing this,” he stated, highlighting instead the impact of risk-off moves across equities.

Long-Term Outlook Offers Glimpses of Optimism

Despite short-term weakness, some long-term projections remain optimistic. Bitwise suggested that future allocations from U.S. pension funds could push Bitcoin’s valuation toward $200,000 before year-end. The company anticipates early institutional inflows as soon as autumn, potentially surpassing the influence of existing ETF approvals.

Related: XRP Price: $12M Max Pain for Bears

However, for now, market participants are closely watching for signals from the Federal Reserve. Chair Jerome Powell’s remarks at the Jackson Hole meeting on Friday are expected to either relieve immediate investor anxiety or prolong the correction. A dovish tone could reignite interest across digital assets, including XRP and its peers.