Crypto Today: Bitcoin extends consolidation while XRP touches fresh all-time high

The cryptocurrency market capitalization expanded, reaching the $4 trillion mark on Friday, bolstered by heightened risk-on sentiment as altcoins, led by Ethereum (ETH) and Ripple (XRP), extended their gains. Bitcoin (BTC), meanwhile, consolidates below $120,000 after reaching a fresh record high of $123,218 on Monday.

XRP broke on Friday above its previous record high of $3.40, initiating a new price discovery phase. It reached $3.66 before retracing to trade at around $3.41. Meanwhile, Ethereum's bullish outlook sees it trading above $3,600, undermined by steady institutional demand. 

Market overview: Institutional interest keeps Bitcoin and Ethereum elevated

Institutional interest in crypto assets, particularly Bitcoin and Ethereum, shows no signs of fatigue despite the price of BTC hovering slightly below record highs. This is evidenced by the steady inflow of Exchange Traded Funds (ETFs), which surpassed $522 million on Thursday for BTC spot ETFs licensed in the US.

According to SoSoValue data, the cumulative total net inflow currently stands at $54.4 billion, with net assets averaging $155 billion.

Bitcoin spot ETF data | Source: SoSoValue 

As for Ethereum, the spot ETFs operating in the US collectively experienced a net inflow of $602 million, the second-highest daily amount in history after Wednesday's $726 million. BlackRock's ETHA dominated the inflows with over $546 million, followed by Grayscale Ethereum Mini Trust (ETH) with nearly $30 million.

Ethereum spot ETF data | Source: SoSoValue

The NASDAQ stock exchange filed with the United States (US) Securities and Exchange Commission (SEC) seeking to add staking to BlackRock's listed iShares Ether (ETHA) spot ETF, underscoring the demand for different crypto asset classes by institutional investors.

If approved, the new product will provide investors with access to staking rewards earned from holding the underlying asset, Ethereum. The SEC clarified in May that staking rewards are categorized as income and not securities transactions, which are subject to capital gains tax.

At the same time, NASDAQ-listed GameSquare announced on Thursday the completion of its public offering, which raised approximately $70 million. The proceeds will primarily be invested in Ethereum (ETH) to grow its existing holdings. The company aims to become the largest corporate holder of Ethereum.

"We are targeting significant ETH acquisitions deployed across strategies engineered by Dialectic, which have historically generated 8%-14% on-chain yields. We believe this approach, combined with staking income and potential ETH appreciation, has the potential to deliver millions in annual incremental revenue," Justin Kenna, CEO of GameSquare, said in a press release.

Chart of the day: Bitcoin sideways ahead of breakout 

Bitcoin price remains sideways, fluctuating between resistance at $120,000 and short-term support at around $117,609, which was tested on Thursday. 

A break above the $120,000 hurdle could steady risk-on sentiment, encouraging investors to seek exposure rather than taking profits. Increased demand for BTC could accelerate the price to fresh record highs.

BTC/USDT daily chart

Still, traders should temper their bullish expectations, especially with the Relative Strength Index (RSI) in the daily chart showing signs of weakness below overbought territory. Should the RSI continue to decline, it would provide a sell signal. 

In the event the bearish leg extends below the short-term support at $117,609, the next tentative support would emerge at $115,748, which was tested on Tuesday, followed by the previous record high of $111,890.

Altcoins update: Ethereum, XRP uphold gains 

Ethereum is holding onto gains accrued this week. It has broken above the pivotal $3,500 level and is currently trading at $3,611 a the time of writing. The path of least resistance remains upward, supported by a sustained buy signal from the Moving Average Convergence Divergence (MACD) indicator since July 2. 

The initial Golden Cross pattern established on July 10, when the 50-day Exponential Moving Average (EMA) crossed above the 200-day EMA, reinforced the bullish grip. 

Now, with the 100-day EMA set to confirm a second Golden Cross pattern as it crosses above the 200-day EMA, demand for ETH could accelerate the price beyond the next critical level at $4,000.

ETH/USDT daily chart

As for XRP, the price reached a new record high of $3.66 on Friday before correcting to $3.44 during the European session. The MACD indicator supports the bullish outlook, which indicates a potential extension of the rally toward the $4.00 level.

XRP/USDT daily chart

Meanwhile, the Relative Strength Index (RSI) being extremely overbought at 86 calls for caution, as overheating conditions could trigger a longer trend reversal due to potential profit-taking activities. 

The previous all-time high at $3.40 remains the immediate support, with extended losses likely to test the $3.00 level, nearly 12% below the current price.