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On Wednesday, XRP experienced an increase of approximately 3.8%, reaching nearly $1.44, outperforming prominent cryptocurrencies including Bitcoin, Ethereum, and Solana.
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According to data from SoSoValue, XRP ETFs attracted roughly $1.55 million in inflows on Tuesday, while Bitcoin, Ethereum, and Solana funds recorded net outflows.
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Bitcoin was seen trading around $79,000, still struggling to reclaim the $80,000 mark it lost on September 5 following unexpectedly high payroll figures.
On Wednesday, Ripple’s XRP outshone major cryptocurrencies as Bitcoin endeavored to regain the $80,000 threshold after lingering below it for several sessions. In contrast, Bitcoin saw a modest rise of around 1%, Ethereum climbed by 1.4%, and Solana increased by less than 2%, while XRP surged nearly 3%.
At the time of reporting, XRP’s price was approximately $1.44. Retail sentiment surrounding XRP on Stocktwits remained in the ‘bearish’ zone, with chatter levels showing a ‘low’ trend over the last 24 hours.
Reasons Behind XRP’s Surge
The strong performance of XRP coincided with a notable shift in U.S. cryptocurrency ETF investments. On Tuesday, spot XRP ETFs recorded inflows of approximately $1.55 million, while Bitcoin faced outflows of $46.65 million, Ethereum saw a decrease of $24 million, and Solana products recorded a net outflow of $667.72K, based on SoSoValue data.
Trader Michaël van de Poppe noted that Bitcoin remains within a defined range but is maintaining a crucial support level, keeping the possibility of a rise toward $82,700 alive. Conversely, trader Ted Pillows pointed out underlying weaknesses in the market rebound, asserting, “There is currently no spot demand for Bitcoin. The rally stems from the closure of short positions.”
Spot Momentum Experiences Significant Decline
Data from Glassnode indicated a 30% decline in Bitcoin’s spot momentum over the past week. Following a peak reading last week, it has now reverted to the median of its statistical bands. Spot trading volume remained steady at $5.3 billion, while the cumulative delta dropped from -$84.9 million to -$29.6 million.
This data signifies a shift where individuals are less inclined to sell and more likely to buy with confidence. Additionally, derivative positions are showing improvement. Open interest in futures has increased by 1% to reach $37.1 billion, surpassing the upper statistical limit, according to Glassnode findings. However, funding payments for long positions have decreased by 32.8% to $1.3 million, suggesting that leverage is rising without a corresponding bullish demand.
Consequences of Bitcoin’s Previous Breach of $80K
Bitcoin climbed above $82,000 on September 4 but subsequently dropped below the $80,000 mark the following day due to stronger-than-anticipated U.S. employment figures that spurred fears of an additional rate hike by the Federal Reserve. Non-farm payrolls surged by 162,000, exceeding predictions by threefold, while the unemployment rate remained stable at 4.1%.