Crypto Daily: ETF Outflows Break Inflow Streak, Weighing on BTC, ETH, and XRP - Cryptured.com

As markets process the uncertainty around US tariffs, the cryptocurrency market is facing increasing challenges on Friday. While big cryptocurrencies like Ethereum (ETH) and Ripple (XRP) challenge key support zones, Bitcoin (BTC) is continuing to extend losses below $106,000.

Market summary: US tariff tune adjustments cause macroeconomic risks to rise

Following the Justice Department’s plea for a federal court of appeals to suspend the decision that had declared President Donald Trump’s tariffs void on Wednesday, the cryptocurrency market saw sharp pullbacks on Friday.

The Court of International Trade ruled that the President’s emergency powers to protect the economy cannot supersede Congress’s sovereign authority to regulate trade with foreign nations, which is granted by the US Constitution.

A “judicial overreach,” however, is what the Trump administration described as the decision, according to The Washington Post. In the face of mounting uncertainty around the US tariff strategy, international markets retracted the gains made on Thursday.

Based on how traders react to inflation figures from the personal consumption expenses (PCE) Price Index, which is expected later on Friday, the bitcoin market may remain turbulent over the weekend.

The PCE price index is renowned for its ability to capture changes in consumer behavior and inflation over a broad spectrum of consumer expenses. As the window for interest rate cuts closes, market players look to the PCE price index data for clues about the Fed’s future course.

First ETF Outflows in 10 Days Signal Market Shift for Bitcoin

With spot Bitcoin Exchange Traded Funds (ETFs) registering inflows for 10 consecutive days from May 14 to May 28, institutional risk-on sentiment was a crucial factor in the rise to a new all-time high of $111,980. Demand from organizations like Strategy and Metaplanet that are creating Bitcoin treasuries also fueled the surge.

However, Thursday’s $359 million withdrawals broke the ten-day trend of inflows, according to SoSOValue data. With tariffs from the US and geopolitical concerns, particularly in Europe and the Middle East, market dynamics are evolving.

In comparison, the present Bitcoin bull market is significantly less volatile than previous cycles. According to Glassnode numbers supplied by CoinDesk, realized volatility is considerably lower than the 80% to 100% range witnessed during previous bull runs, with a three-month rolling average of less than 50%.

Because of its growing market capitalization and growing institutional interest, which are supported by ETFs and derivatives offerings, Bitcoin has remained stable.

Furthermore, according to a recent report by Glassnode, the introduction of the US spot ETF products, along with better regulatory clarity, has changed the fundamental makeup of the investor base and made it possible for capital and sophisticated institutional investors to become exposed to Bitcoin for the first time.

Today’s chart: Bitcoin drops below crucial support

As of writing, Bitcoin’s price is continuing to drop sharply below $106,000, indicating growing sell-side pressure. Moving Average Convergence Divergence (MACD) and other important technical indicators show the new bearish picture.

Following the confirmation of a selling signal on May 25, after the blue MACD line dropped below the red alert line, traders were instructed to dispose of Bitcoin, resulting in the largest drop-off since the cryptocurrency established new all-time highs on May 22. The MACD marker then drops to the middle line.

The market’s mounting pessimism is bolstered by the Relative Strength Index’s (RSI) falling slope from recent elevated levels as it approaches the 50 midline.

The level of about $102,500 that served as opposition in early January and rallied in mid-May, as well as the temporary reassurance near $105,000, will be key areas of focus in upcoming sessions.

The gains made in May and, consequently, those from the April slump brought on by tariffs may be in jeopardy, since altcoins have been overshadowed by growing selling pressure.

The daily chart below illustrates the downward slope of the RSI and MACD indicators, respectively. Let’s say that this technical view doesn’t alter and the MACD indicator keeps the sale signal that was validated on May 22 as it moves closer to the zero line.

In such a case, the bearish trend will continue through the weekend, following the path of the shortest distance. The RSI at 62 suggests that positive momentum is decreasing after entering the overbought zone. The 50-day EMA at $2,277 and the 200-day EMA at $2,445 are other crucial levels to monitor.

XRP has been hit hard, losing more than 2% on the day. The international money remittance token has lost two critical support levels: the 50-day EMA, which is presently at $2.29, and the 100-day EMA, which is holding at $2.26. It is now trading at $2.19.

The next level of importance is the 200-day EMA around $2.07, particularly for traders who are watching the dips. Beyond this point, drops can quicken, highlighting the bottom from April 7 at $1.61 and the area with plenty of liquidity at $1.00.