- Assessing the Outlook for Bitcoin, Ethereum, and XRP Recovery

Bitcoin shows signs of continuing its rebound above $68,000, supported by the growing derivatives market. After a sustained decline in open interest for futures contracts from a record high of $94.12 billion in October to $43.44 billion on Tuesday, open interest increased to $44.76 billion on Friday.

Bitcoin needs steady growth in retail demand to sustain its recovery, as the lack of derivative support makes the cryptocurrency vulnerable to selling pressure, especially if macroeconomic uncertainty and geopolitical tensions persist.

Daily Trading Data for Bitcoin Futures | Source: CoinGlass

Ethereum has seen a decline in retail investor interest, with open interest in futures peaking at $70.13 billion in August, coinciding with its all-time high of $4,956. CoinGlass data indicates that the average open interest for futures was $24.15 billion on Friday, up from $23.57 billion the previous day.

Open Interest Data for Ethereum Futures | Source: CoinGlass

Meanwhile, XRP continues to face declining retail investor interest, as evidenced by the drop in open interest for futures to $2.32 billion on Friday, compared to $2.45 billion the day before. Like Ethereum and Bitcoin, XRP derivatives have significantly fallen from their all-time high of $10.94 billion recorded in July, weakening recovery prospects and reducing retail interest. Any further decline could greatly increase the likelihood of a prolonged sell-off wave.

Daily Trading Data for XRP Futures | Source: CoinGlass

In contrast, spot XRP exchange-traded funds (ETFs) show a different picture, after returning to inflows on Thursday. These US-listed funds attracted nearly $4 million in deposits, bringing total inflows to $1.23 billion and total assets under management to $1.01 billion.

If ETF interest continues, sentiment around XRP will improve, further increasing recovery chances.

XRP ETF Inflow Data | Source: CoinGlass