- Cryptocurrency Today: Bitcoin, Ethereum, and XRP Prices Decline as Capital Outflows Continue:

The headwinds from the macroeconomic environment continue to heavily impact the cryptocurrency market on Friday, pushing major assets like Bitcoin (BTC) to trim previous gains and widen losses after a slight rally in June.

Altcoins, including Ethereum (ETH) and Ripple (XRP), were also suppressed, reaching lows near $1,600 and $1.12 respectively.

The Federal Reserve's hawkish stance, after holding interest rates steady within the 3.50% to 3.75% range, indicates a prolonged period of tight monetary policy. Fed Chair Kevin Warsh emphasized at the post-meeting press conference the need to bring inflation to the long-term target of 2% while ensuring price stability.

Market participants are increasingly betting on a rate hike in the upcoming review cycle, with CME Group data indicating a 36% probability. Conversely, investors see a 64% chance that the Fed will keep interest rates unchanged.

FedWatch Tool | Source: CME Group
Risk Sentiment Declines Amid Capital Outflows
Risk appetite in digital assets remains notably low, as evidenced by the Fear and Greed Index, which settled around 14 points in the extreme fear zone on Friday. The continued risk aversion suggests that investors have exhausted their energy amid waning confidence in the crypto market’s ability to sustain a short- to medium-term recovery.

Crypto Fear and Greed Index | Source: Alternative
The broad decline among investors is evident through ongoing outflows from spot Bitcoin exchange-traded funds (ETFs), which totaled approximately $91 million on Thursday and $82 million the previous day.

Bitcoin ETF Outflows | Source: SoSoValue
Spot Ethereum ETFs experienced further declines, with outflows of about $13 million on Thursday and $29 million the day before. Data from SoSoValue shows a decrease in cumulative inflows to $11.18 billion from $11.19 billion during the same period. The average assets under management (AUM) stand at $9.3 billion.

Ethereum ETF Outflows | Source: SoSoValue
Meanwhile, XRP ETFs outperformed both Bitcoin and Ethereum, attracting $2.55 million in inflows on Thursday. Despite these limited inflows, challenges outweigh demand, making the asset vulnerable to further losses in spot and derivatives markets.

XRP ETF Flows | Source: SoSoValue
Retail demand declined further, with open interest in futures contracts falling to $2.64 billion on Friday from $2.77 billion the previous day. Since the price dropped to $1.28 on Monday, traders have been reducing their positions, contributing to increased selling pressure.
$BTC ‌
$ETH ‌
$XRP ‌