Main Points:
- Bitcoin (BTC) faces resistance from profit-taking, limiting its upward momentum.
- XRP shows strength but struggles to break higher levels.
- Bitcoin and Ethereum have largely recovered from early October losses, while XRP remains sluggish.
- Reports indicate a significant inflow into U.S. Bitcoin spot ETFs, surpassing $200 billion.
- In El Salvador, despite Bitcoin being legal tender, 92% of the population reportedly do not use it.
Profit-Taking Limits Bitcoin’s Upside
As of the morning of October 18, 2024, Bitcoin (BTC) was trading around ＄66,668, a marginal 0.1% decline over the past 24 hours. Ethereum (ETH) was valued at approximately ＄2,578, reflecting a slight 0.1% increase, while XRP was trading at ＄0.54, down by 0.5%.
On October 17, Bitcoin faced strong selling pressure from profit-taking after crossing the around $68,000 in USD terms. Despite this resistance, Bitcoin managed to stabilize its losses by the evening, supported by buyers stepping in at lower price points. The downside, while noticeable, has remained relatively limited due to this buying activity.
XRP Struggles to Maintain Momentum
XRP, which had been lagging behind Bitcoin and Ethereum, showed some strength during the day. However, the asset struggled to sustain any significant upward momentum. Unlike Bitcoin and Ethereum, which have managed to recover most of their losses from early October, XRP remains sluggish, partly due to a sharp rally that preceded its recent movements.
Bitcoin Spot ETFs Inflow Reaches a Milestone
A significant development reported on October 17 was that the total inflow into U.S. Bitcoin spot ETFs (exchange-traded funds) exceeded $200 billion. This milestone highlights increasing institutional interest in Bitcoin, which could provide a floor to prices even as retail investors take profits.
Bitcoin Adoption in El Salvador: A Limited Success?
Despite Bitcoin being recognized as legal tender in El Salvador, recent reports show that 92% of the population does not use it. This raises questions about the effectiveness of Bitcoin adoption policies and whether Bitcoin’s use as a legal currency can truly take hold on a larger scale in countries where the infrastructure is not fully in place.
The Recovery of BTC and ETH in October
Bitcoin and Ethereum have shown resilience in the face of profit-taking, with both recovering much of the losses incurred earlier in October. Bitcoin’s ability to hold above key psychological levels, such as $68,000, reflects the strength of buyer interest at lower levels. Ethereum’s slight gains, though modest, indicate ongoing investor confidence in the asset as well.
For XRP, the story is different. Having surged earlier, XRP is now finding it difficult to push higher. The market’s attention seems divided between Bitcoin’s recovery and the new flows into institutional products like Bitcoin ETFs, with less focus on altcoins like XRP.
Institutional Interest Bolstering Bitcoin’s Support
The surpassing of $200 billion in inflows into Bitcoin spot ETFs is a clear signal of growing institutional participation in the cryptocurrency market. ETFs offer a regulated and easier access point for traditional investors, which in turn supports the price of Bitcoin. While retail profit-taking might create short-term downward pressure, the long-term outlook for Bitcoin remains robust, supported by these inflows.
El Salvador’s Bitcoin Experiment: Facing Challenges
El Salvador’s bold move to adopt Bitcoin as legal tender has garnered global attention, but the recent report indicating that 92% of the population does not use Bitcoin is a setback. While the government’s initiative aimed to increase financial inclusion and modernize the economy, adoption remains low, possibly due to a lack of infrastructure and education around cryptocurrency.
A Mixed Outlook for the Crypto Market
In summary, while Bitcoin and Ethereum have largely recovered from early October declines, they are facing headwinds from profit-taking. XRP, despite occasional strength, continues to underperform. The growing institutional interest, particularly through Bitcoin ETFs, suggests that long-term support for Bitcoin remains intact. However, the slow adoption of Bitcoin in El Salvador raises questions about its practical use as a legal currency in countries with developing financial systems.
Despite these challenges, the long-term fundamentals for Bitcoin appear strong, especially as more institutional investors enter the market. The question now is whether this interest will trickle down to other cryptocurrencies like XRP or if Bitcoin’s dominance will continue to grow.
