Crypto Today: Bitcoin, Ethereum, and XRP Recovery Delayed Amid Continued Outflows from ETFs

Cryptocurrency prices rose slightly on Friday as market participants continued to assess the conflict in the Middle East. Bitcoin (BTC) trades above $73,000, but its rise remains limited due to major supply zones.
Ethereum (ETH) reflects the overall risk-avoidance trend, trading above the $2,000 support level amid ongoing withdrawals from exchange-traded funds (ETFs). Despite slight inflows into XRP ETFs, the overall technical outlook remains weak, with its spot price exceeding $1.32.

- Uncertainty over the US-Iran peace deal negatively impacts market sentiment:
News of the US and Iran reaching an agreement on a memorandum of understanding to extend a ceasefire for 60 days, open the Strait of Hormuz, and begin nuclear negotiations made headlines Thursday, confirmed by the White House. However, ambiguity remains, as US President Donald Trump has not yet given his approval. Meanwhile, Iranian semi-official news agency Tasnim reported that the text of the memorandum has not been approved or finalized.

Risk appetite for crypto assets has significantly declined alongside sentiment, which, according to the Fear and Greed Index, is currently at 23 in the extreme fear zone on Thursday, down from 28 in the fear zone last week.

Crypto Fear and Greed Index | Source: Alternative
Institutions continue to withdraw their investments from spot ETFs, as evidenced by outflows totaling around $228 million on Thursday. Although this is a notable decrease from approximately $733 million on Wednesday, Bitcoin ETFs have experienced nine consecutive days of outflows. However, data from SoSoValue shows that Bitcoin ETF funds have accumulated net inflows of $55.79 billion, with an average net assets under management of $94.25 billion.

Bitcoin ETF Flows | Source: SoSoValue
Interest in spot Ethereum ETFs remains notably low, with outflows extending for nearly two weeks, totaling about $121 million on Thursday. The continued selling indicates that investors are still assessing geopolitical tensions and macroeconomic uncertainty, factors rarely favorable for high-risk assets.

Ethereum ETF Flows | Source: SoSoValue
Meanwhile, XRP ETFs have maintained a relatively steady upward trend with slight inflows of $1.77 million on Thursday. Activity was weak on Wednesday. Prior to that, these funds had maintained a steady, albeit modest, upward trend since May 14. Total inflows currently stand at $1.41 billion, with net assets under management at $1.12 billion.
However, declining internal flows may support short-term outlooks for XRP. Nonetheless, the overall market sentiment remains weak, and with structural weaknesses limiting this trend, XRP may experience a slow recovery.

XRP ETF Flows | Source: SoSoValue
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