Crypto market prices have shed $150 billion in market cap in the six days leading up to May 30. This was caused by Bitcoin dropping to $72,500 because of $1.4 billion outflows from BTC ETFs. Ethereum has dropped to $2,000, and it is now in a bearish zone.
XRP also fell to $1.27 on Thursday, but it has since moved to $1.33 price, with the order book showing that there are seven times more bid orders than sell orders.
Bitcoin ETF Outflows Hit $1.42B as Crypto Market Slips
Data from SoSoValue shows that spot Bitcoin ETFs have lost $1.42 billion since May 25. They have posted ten straight days of outflows for the first time since 2024. Even the Morgan Stanley Bitcoin ETF went to negative territory on May 29 for the first time with $5.26 million in outflows.
Glassnode explains that institutions are not buying the ETFs because there is no demand from spot traders. It says that Bitcoin getting to $80,000 remains a pipe dream if there is no one buying BTC on spot exchanges.
But Bloomberg analyst Eric Balchunas notes that Bitcoin’s volatility and correlation are getting closer to gold’s, and that might bring them back.
“The big boy money out there (institutions, advisors) is not interested in tech stock returns from BTC (they can get that in QQQ et al), they want gold-like returns,” he said.
A recent CoinGape Bitcoin price analysis also noted that these institutions might be rotating from the crypto market to AI because of the three IPOs that are coming up: SpaceX, OpenAI, and Anthropic.
Ethereum Enters Bearish Range as On-Chain Warns of More Downside
Ethereum dropped below $2,000 on May 28, and bulls are struggling to defend this psychological support that might culminate in massive losses if ETH moves below it, according to analyst Ali Martinez, who said Ethereum will drop to $1,560 if it makes a weekly close below $1,850.
CryptoQuant also said that Ethereum’s Estimated Leverage Ratio has risen to 0.74 even when the price is struggling to remain above $2,000. That means the price is moving because of derivative positioning, and there is no real crypto market demand that can support sustained gains.
But the funding rate shows that the traders who are causing this ratio to be high are longs, and that creates a bearish divergence because if Ethereum does not rise like they expect it to, they will begin to sell.
CryptoQuant also adds that the RSI reading of 31 shows that ETH is in the oversold territory, and the long-term Ethereum price forecast is bearish.
XRP Spot Bids Surge
XRP has seven times more bids than asks according to an X post by analyst Dom, but this has nothing to do with a strong market structure, but rather because of its rival XLM.
CoinGape reported that XLM has risen by 33% because Stellar is working with the DTCC to tokenize stocks, and that led people to buy. XRP and XLM have also been trending in the crypto market for two days now, and that shows traders expect that XRP might mimic Stellar’s 33% rise.
The long/short ratio for XRP has had a negative reading since May 3, and that shows that bears remain more than bulls even if the bids are rising. It shows that futures traders expect that XRP is going to go below its price of $1.34 at the time of writing.
But this short bias can cause the price to go up if those who are holding these positions are squeezed out when XRP rises.
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