Bitcoin Under Pressure, XRP Clings to the $1 Mark

Bitcoin and other leading cryptocurrencies are facing renewed weakness as regulatory delays, ETF outflows and elevated Treasury yields weigh on market sentiment.

Bitcoin has come under pressure again, while XRP is hovering around the critical $1 level as several unfavorable developments have emerged over the past 24 hours.

Regulatory uncertainty is one of the main sources of concern. Progress on the Clarity Act has slowed in the U.S. Senate, while the Securities and Exchange Commission is reportedly considering another delay to its proposed “innovation exemption.” The initiative is intended to make it easier for tokenized securities to trade on blockchain networks within the existing securities framework.

The proposal has reportedly drawn concerns from the White House and Wall Street over its legal basis and potential impact on financial markets.

The SEC’s separate “Reg Crypto” initiative has also suffered a setback. The agency postponed a Friday meeting that was expected to discuss proposed fundraising rules for token projects and has not yet provided a new date.

MSCI has added another potential headwind. The index provider is considering a framework to remove “non-operating companies” from its equity indexes, with Bitcoin treasury firms Strategy and Metaplanet among the companies that could be affected.

Spot Bitcoin ETFs Lose Momentum

ETF flows are also weighing on Bitcoin. U.S.-listed spot Bitcoin funds have recorded around $333 million in net outflows so far this week, reversing the $853 million of inflows recorded last week.

The earlier inflows had raised expectations of renewed institutional demand, but the latest withdrawals suggest that momentum has weakened. Investors have withdrawn more than $4 billion from U.S. spot Bitcoin ETFs on a year-to-date basis.

The bond market is adding further pressure. A $25 billion auction of 30-year U.S. Treasury notes on Thursday pushed yields as high as 5.22%, according to the Treasury Department. Some dealers described the yield as the highest since 2001.

Higher long-term yields increase borrowing costs and improve the relative appeal of income-generating assets compared with Bitcoin, which does not produce a conventional yield. This can further reduce demand for risk assets.

With crypto legislation facing delays, ETF flows weakening and Treasury yields remaining elevated, the market has limited support for an immediate breakout. XRP is especially vulnerable as it continues to defend the $1 threshold.

XRP’s $1 Level Comes Under Pressure

XRP has managed to remain above $1 despite the broader market weakness. A sustained break below the level, however, could trigger additional selling.

The $1 mark may also represent an important cost basis for traders who accumulated XRP below that price in late 2024. Losing the level could therefore encourage some holders to reduce their positions.

The combination of these factors leaves XRP’s $1 support and Bitcoin’s multi-week range increasingly vulnerable as traders look toward the next session.

Analysts Maintain a Bullish Longer-Term View

Despite the near-term challenges, some analysts continue to expect a stronger crypto market in the latter part of 2026.

Matt Mena, senior crypto research strategist at 21Shares, pointed to the sector’s strong performance in July. He said the overall crypto market outperformed the S&P 500 by 7.5 percentage points and the Nasdaq-100 by 14.2 percentage points.

Mena said that relative strength could lay the groundwork for a solid third quarter and potentially a sharp fourth-quarter rally. His projections include Bitcoin at $100,000, Ether at $3,000, HYPE at $70 and SOL at $110.