CoinDesk 20 Index: 3,342.34 -2.28%
Bitcoin (BTC): $93,646.04 -1.34%
Ether (ETH): $3,306.18 -0.94%
S&P 500: 5,918.25 +0.16%
Gold: $2,672.92 +0.63%
Nikkei 225: 39,605.09 -0.94%

Bitcoin fell to $93,000 during the European morning as the crypto market's slide showed no signs of stopping. Fresh economic data from the U.S. on Wednesday sent U.S. treasury yields soaring, leading to a fall in equities. The latest Institute for Supply Management report on U.S. service providers was stronger than anticipated, with the prices-paid measure reaching its highest point since early 2023. This sent other majors spiraling downward. Token prices have been flat over the past week as traders took profits on a short-lived rally earlier in the week, with ADA, SOL and ETH down nearly 10% since Monday. The broader CoinDesk 20 (CD20), a liquid index tracking the largest tokens, is down 2.87% in the past 24 hours, an additional decline after Wednesday’s 7% plunge.

Options on the broad-based S&P 500 now reflect greater downside risk than they did a year ago, which may further dampen chances of an uptick in risk assets, including bitcoin, as traders prefer safer investments such as bonds. The defensive positioning in stocks perhaps stems from concerns that President-elect Donald Trump's Jan. 20 inauguration could be a "sell-the-news" event. Risk-taking has picked up across financial markets in the past two months in anticipation of pro-corporate and pro-economy reforms under the incoming Donald Trump's presidency, and profit-taking cannot be ruled out. Trump’s inauguration on Jan. 20 is widely expected to shift crypto regulations and even a strategic bitcoin reserve in the coming months, both months that provide legs for the next rally.

Bitcoin ETFs saw their second highest ever daily outflows on Wednesday as macroeconomic uncertainties cast a shadow over the cryptocurrencies' price prospects. The eleven U.S.-listed bitcoin ETFs recorded a combined net outflow of $582 million, marking the second-largest total since these alternative investment vehicles began trading a year ago, according to data from SoSoValue. The large outflow comes shy of the record withdrawal of $680 million on Dec. 19. Ether ETFs bled $159.3 million, the largest tally since July 26. These large outflows coincide with renewed U.S. inflation fears, which have fueled bond market volatility, sending risk assets lower.

Shifting regulatory tides in the U.S. and favorable price action could set up XRP for a 40% move higher in the near term.

Since hitting highs near $2.90 in early December, payments-focused cryptocurrency XRP has lost steam to carve out what is known as a "descending triangle" pattern in technical analysis.

It is identified by a lower horizontal support line, representing consistent demand near a specific price level, and the declining upper trendline, representing shallower price bounces. Descending triangles often end with a downside break. However, bullish breakouts are more reliable and profitable, producing an average gain of 47% to 16%.

In other words, XRP could surge 40% or more if prices top the declining upper trendline, signaling a resumption of the preceding bull run from early November lows near 50 cents.

Since Trump's election, XRP has seen its price surge by over 300%, outpacing other major cryptocurrencies. This surge is largely attributed to the expectation of a crypto-friendly policy environment under Trump, which includes easier regulatory pathways for local crypto businesses, such as Ripple.

- Omkar Godbole