Crypto Today: Bitcoin, Ethereum, XRP hold recovery levels amid minor ETF outflows

The crypto market traded modestly, gaining 1.1% on Friday as Bitcoin (BTC), Ethereum (ETH) and XRP maintained their recent recovery levels. The gains came despite US spot ETF outflows and cautious investor sentiment, suggesting buyers continue to defend key support levels.

Bitcoin holds near $64K despite ETF outflows, treasury sell-offs

Bitcoin (BTC) traded slightly above $64,000 on Friday despite selling pressure from US spot Bitcoin exchange-traded funds (ETFs). The funds recorded net outflows of $95 million on Thursday, marking a second consecutive day of negative flows.

The move follows Bitcoin treasury company Empery Digital's disclosure in a filing with the US Securities and Exchange Commission (SEC) that it has sold 1,400 BTC since May at an average price of $62,200. The proceeds will be used to repay debt, fund a previously announced property acquisition and cover legal expenses.

The company also said it is shifting its strategic focus toward artificial intelligence (AI) infrastructure, including participation in a proposed $1 billion AI data center project. As part of the transition, Empery will discontinue publishing net asset value (NAV) updates based solely on its Bitcoin holdings, reflecting its growing exposure to AI and energy infrastructure businesses.

Meanwhile, Japan's Metaplanet announced a feasibility study with JPYC, Progmat and its securities subsidiary to explore Bitcoin-backed digital credit products.

The initiative will evaluate the use of Bitcoin as collateral alongside stablecoins and tokenization infrastructure to enable 24/7 issuance, settlement and interest payments.

Ethereum records ETF outflows as onchain activity sends mixed signals

Ethereum (ETH) traded near $1,800 following another day of outflows from US spot ETH ETFs. The funds recorded net outflows of $52 million on Thursday, marking a shift in sentiment after attracting positive inflows earlier in the week.

The top altcoin’s onchain activity paints a mixed picture, according to a Thursday note by CryptoQuant contributor CryptoOnchain. While the number of regular user transactions has increased by roughly 40% over the past week, the median value of token transfers has dropped 77%.

The divergence suggests that network activity is being driven largely by low-value transactions or automated bot activity, rather than significant capital inflows from larger investors.

The analyst also highlighted that Binance funding rates have surged well above their 30-day average, showing that leveraged traders are increasingly positioning for further price gains. However, this bullish sentiment has yet to be supported by meaningful on-chain capital movement, while stablecoin redemptions point to weaker buying power across the market.

CryptoOnchain stated that a disconnect between rising speculative positioning and subdued economic activity on Ethereum's network could leave the market vulnerable to a sharp deleveraging event if stronger capital inflows fail to materialize.

XRP reclaims $1.10 as derivatives activity slows

XRP traded near $1.10 as activity in the derivatives markets continued to weaken.

CryptoQuant contributor Arab Chain stated that open interest in XRP futures on Binance has fallen to approximately 397 million XRP, its lowest level in more than three months.

Arab Chain noted that a decline in open interest typically reflects traders closing existing positions or opening fewer new ones. When combined with declining prices, it often signals weaker risk appetite, reduced liquidity and lower leverage across the futures market.

However, the analyst states that the trend is not necessarily bearish.

"In many cases, this phase represents a period of repositioning as investors await a clearer market direction," Arab Chain wrote.

A recovery in both XRP's price and open interest could indicate that liquidity is returning to the market and that a more active trading environment is beginning. On the other hand, continued declines would suggest investors remain cautious.

On the institutional side, US spot XRP ETFs recorded zero flows on Thursday after posting $7.29 million in net outflows on Wednesday, suggesting institutional demand remains subdued.