XRPUSD – Daily Chart – 210725
Explore our full XRP forecast here for key breakout zones and timing insights.
Bitcoin Succumbs to Crypto Rotation
While XRP advanced on hopes for an end to the Ripple case, Bitcoin (BTC) extended its losing streak to three sessions. Profit-taking and rotation into alt-coins likely left BTC trailing the broader crypto market. Notably, DOGE soared 13.03%, while ETH continued its move toward $4,000, rising 4.53% on July 20.
However, the upcoming Working Group Report could revive BTC demand if the report recommends adding to the government’s existing BTC stockpile.
Meanwhile, US legislative developments, BTC-spot ETF flow trends, and broader institutional demand remain crucial for BTC’s price outlook.
US BTC-Spot ETF Market Inflow Streak at Risk
The US BTC-spot ETF market extended its inflow streak to twelve sessions on July 18, with net inflows of $496.8 million, taking total weekly inflows to $2,386 million. BlackRock’s (BLK) iShares Bitcoin Trust (IBIT) dominated with weekly net inflows of $2,569 million. Significantly, IBIT last reported net outflows on June 6.
BTC Price Outlook: CLARITY Act, Working Group Report, and Spot ETF Flows in Focus
BTC dropped 0.48% on July 20, following Saturday’s 0.06% dip, closing at $117,241.
The near-term price outlook hinges on several key factors. These include the CLARITY Act’s progress on Capitol Hill, Strategic Reserve Asset-related news, and spot ETF flow trends.
Potential scenarios:
Bearish Scenario: Legislation roadblocks, silence on BTC stockpile, hawkish Fed signals, and ETF outflows. A combination of these may push BTC toward $115,000, potentially exposing the 50-day Exponential Moving Average (EMA).
Bullish Scenario: CLARITY Act’s progress, support to increase the US government’s BTC holdings, dovish Fed rhetoric, and ETF inflows. Under these scenarios, BTC could target the all-time high of $122,057.