Spot bitcoin ETFs are seeing net outflows again, with U.S.-listed funds shedding $333 million this week, reversing the $853 million in inflows recorded last week that had hinted at returning institutional demand. Year-to-date, investors have withdrawn over $4 billion from these funds.
Compounding the pressure, a $25 billion auction of the U.S. 30-year note on Thursday pushed yields as high as 5.22%, according to the Treasury Department—a level some dealers called the highest since 2001. Rising long-term yields increase capital costs and raise the opportunity cost of holding non-yielding assets like bitcoin, further weigh down an already fragile market backdrop.
Together with stalled legislation and weak ETF demand, these climbing yields suggest limited room for a broad cryptocurrency rally, leaving major tokens such as XRP particularly vulnerable.
XRP has managed to hold above the $1 support level, though a breach could trigger selling pressure. Many traders likely accumulated positions below this threshold in late 2024, anticipating a market shift.
This dynamic explains why XRP’s grip on $1 and bitcoin’s hold on its multi-week range both appear increasingly fragile as the next session approaches.