Bitcoin, Ethereum, and XRP Holders in Profit; Short-Term Market Downturn on Horizon

reportcryptos.com
2 Min Read

The cryptocurrency industry has recorded increased cash inflows over the past few weeks fueled by the spot Bitcoin exchange-traded funds (ETFs) approval in the United States. According to market data provided by CoinShares, the cryptocurrency investment products recorded an inflow of about $1.18 billion since the approval of spot ETFs.

Notably, Bitcoin’s investment products received the highest with $1.16 billion followed by Ethereum with an inflow of $26 million and Ripple-backed XRP with $2.2 million. The increased crypto cash inflow is in preparation for the anticipated macro bull market in the coming quarters.

High Risk of Crypto Correction on the Horizon

Following the general crypto price recovery from the bear market lows, on-chain data analysis provided by market intelligence platform Santiment shows the majority of investors are in profit, thus increasing the chances of selling pressure.

Notably, 83 percent of Bitcoin supply is already in profit compared to 84 percent and 81 percent of Ethereum and XRP supply. Ideally, the higher the total supply in profit indicates a higher chance of market correction. However, the high demand for digital assets as investors prepare for the upcoming bull cycle reduces the chances of market corrections.

Market Picture

According to Bitcoin’s MVRV pricing band, the next price targets are between $52,680 and $70,250, if the BTC bulls defend the support level around $42k. Meanwhile, the TOTAL2 market cap shows a potential altcoin breakout on the horizon. Moreover, Bitcoins dominance has slipped below the crucial support level around 52 percent, which indicates an inevitable crypto cash rotation.

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