- Bitcoin, Ethereum, and XRP posted modest gains even as U.S. spot crypto ETFs continued seeing net outflows.
- On-chain data shows mixed signals, with institutional demand remaining cautious despite improving prices.
- Analysts say the market is holding key support levels, but stronger capital inflows will likely be needed for the next breakout.
The cryptocurrency market edged higher on Friday, gaining roughly 1.1% as Bitcoin (BTC), Ethereum (ETH), and XRP extended their recent recovery. It wasn’t an explosive rally by any means, but considering the continued ETF outflows and generally cautious investor sentiment, the resilience caught plenty of attention.
For now, buyers appear willing to defend important support levels even as institutional demand remains somewhat muted.
Bitcoin Holds Above $64,000 Despite Continued ETF Selling
Bitcoin traded just above the $64,000 mark after U.S. spot Bitcoin ETFs recorded another day of net outflows.
According to SoSoValue data, investors pulled approximately $95 million from spot BTC ETFs on Thursday, marking the second straight day of negative flows. Under normal conditions, sustained outflows like this could weigh heavily on price, yet Bitcoin has remained surprisingly stable.
Another headline also grabbed investors’ attention this week.
Nasdaq-listed Empery Digital revealed in a filing with the U.S. Securities and Exchange Commission that it has sold roughly 1,400 BTC since May at an average price of about $62,200 per coin.
The proceeds are being used to repay debt, finance a previously announced property acquisition, and cover legal expenses tied to shareholder litigation. At the same time, the company confirmed it is pivoting toward artificial intelligence infrastructure, including participation in a proposed $1 billion AI data center project.
As part of that strategic shift, Empery also said it will stop reporting net asset value based solely on its Bitcoin holdings, reflecting its growing focus on AI and energy infrastructure rather than Bitcoin alone.
Meanwhile, Bitcoin adoption continues to expand elsewhere.
Japan’s Metaplanet announced a new feasibility study alongside JPYC, Progmat, and its securities subsidiary to explore Bitcoin-backed digital credit products. The initiative aims to evaluate whether Bitcoin can serve as collateral within a tokenized financial system capable of supporting 24/7 lending, settlement, and interest payments.
Ethereum Faces Mixed Signals Despite Price Stability
Ethereum held near the $1,800 level even as U.S. spot Ethereum ETFs recorded another round of outflows.
The funds lost roughly $52 million on Thursday after seeing positive inflows earlier in the week, suggesting institutional sentiment remains somewhat inconsistent.
On-chain activity is sending an equally mixed message.
According to CryptoQuant contributor CryptoOnchain, the number of transactions on Ethereum has increased by roughly 40% over the past week. At first glance, that sounds encouraging.
However, there’s a catch.
The median value of those transfers has fallen by approximately 77%, indicating much of the recent activity is being driven by smaller transactions—or possibly automated bots—rather than meaningful capital entering the network.
Leverage is also climbing.
Funding rates on Binance have moved well above their 30-day average, showing traders are becoming increasingly bullish through leveraged positions. Yet those speculative bets haven’t been matched by stronger on-chain capital flows, while stablecoin redemptions continue pointing toward softer buying demand.
According to CryptoOnchain, that disconnect leaves Ethereum vulnerable. If fresh capital fails to arrive, an overleveraged market could eventually unwind through a sharp deleveraging event.
XRP Derivatives Activity Continues Cooling
XRP traded around $1.10 as derivatives markets continued showing signs of reduced activity.
CryptoQuant analyst Arab Chain noted that open interest in XRP futures on Binance has fallen to approximately 397 million XRP—the lowest level recorded in more than three months.
A decline in open interest generally means traders are closing positions or becoming less aggressive about opening new ones. Combined with softer trading activity, it often reflects lower leverage, weaker liquidity, and a more cautious approach across futures markets.
That isn’t necessarily bearish, though.
Arab Chain believes the current slowdown may simply represent a repositioning phase while traders wait for a stronger market catalyst. If XRP’s price begins rising alongside renewed open interest, it could signal that liquidity and trader confidence are returning.
On the other hand, if both continue trending lower, investor caution may remain the dominant theme.
Institutional activity also stayed quiet.
U.S. spot XRP ETFs reported no net flows on Thursday after recording $7.29 million in net outflows the previous day, suggesting large investors are still taking a wait-and-see approach.
The Market Is Holding Up, but Momentum Needs Fresh Capital
Bitcoin, Ethereum, and XRP have all managed to stabilize despite ongoing ETF outflows and cautious institutional positioning. That’s an encouraging sign, especially considering the amount of selling pressure the market has absorbed over the past several sessions.
Still, price resilience alone may not be enough.
Without stronger institutional participation and fresh capital flowing back into both spot markets and ETFs, the current recovery could struggle to evolve into a sustained bull run.
For now, crypto’s biggest assets continue holding critical support levels. The next challenge is turning that stability into real momentum.
