Bitcoin Faces Further Downside Risk as Ripple’s Bank Approval Fails to Lift XRP
Bitcoin remained under pressure below $80,000 as technical indicators pointed to further downside risk, while Ripple’s regulatory approval to establish a U.S. national trust bank failed to support XRP’s price. Market analysts warned that Bitcoin could fall toward $75,000 or $73,000 if its key support level gives way.
The largest cryptocurrency has been trading below both the $80,000 threshold and its 50-day moving average, signaling near-term weakness. Previous resistance areas from May and September have also failed to provide reliable support, according to Alex Kuptsikevich, chief market analyst at FxPro.
Bitcoin Support at $80,000 Remains in Focus
Kuptsikevich said technical indicators suggest the downward trend could continue as Bitcoin moves further below its 50-day moving average. The failure of earlier resistance zones to hold as support adds to concerns about the cryptocurrency’s immediate outlook.
Secure Digital Markets identified $80,000 as Bitcoin’s critical support zone. In a daily market note, the Ontario-based firm warned that a break below this level could expose the market to further declines toward $75,000 and then $73,000.
The firm also highlighted a contraction in Bitcoin’s trading range. BTC spent two weeks moving between $80,000 and $86,000, while its 30-day range narrowed from 13% to 6%. Secure Digital Markets said this type of volatility compression often precedes a sharp price move, although it does not determine the direction of that move.
Options Traders Anticipate Movement Around Fed Meeting
Options pricing suggests traders are preparing for some market movement around the Federal Reserve’s Wednesday meeting, though expectations do not point to an unusually large move.
Derive, a decentralized trading platform, told CoinDesk that an at-the-money options strategy expiring Friday costs approximately $2,400, implying an expected Bitcoin move of around 3% in either direction by expiration.
For comparison, the average daily move priced in around the U.S. midterm elections is slightly lower, at approximately 2.1%, according to Derive. The figures reflect market-implied expectations rather than a guarantee of future price action.
Ripple Bank Approval Does Not Boost XRP
Ripple received regulatory approval to establish its own U.S. national trust bank, a development that could strengthen the institutional infrastructure available for custody services. However, the news has not translated into gains for XRP, the token Ripple uses to facilitate cross-border transactions.
XRP was down 0.5% since midnight UTC, despite the regulatory development. The price reaction highlights the distinction between progress in Ripple’s banking operations and direct demand for the cryptocurrency.
Analysts at Marex said the bank charter does not create an obligation for institutions to purchase XRP. They also pointed to XRP funding at 0.81 basis points and a 3.1% increase in dollar open interest, underscoring the importance of derivatives positioning alongside regulatory headlines.
Regulatory Progress and Token Demand Remain Separate
Ripple’s approval could support the development of its institutional services, but the immediate market response suggests traders are not treating the decision as a direct catalyst for XRP purchases. The bank charter itself does not require customers or institutions to hold the token.
For Bitcoin, attention remains on the $80,000 support level, the narrowing trading range and upcoming Federal Reserve developments. A break below support could increase downside pressure, while the options market indicates that traders are preparing for movement without pricing in an exceptional shift.
source: coindesk
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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