Bitcoin, Ethereum and XRP gains strengthen bullish crypto outlook

Cryptocurrency prices are recovering broadly on Friday, led by Bitcoin, which climbed above $86,000. Ethereum reaffirmed its bullish outlook after breaking above $2,700, while the nearby $2,800 level remains a barrier to further gains.

Meanwhile, XRP is hovering near $1.54 as buyers strengthen their positions in preparation for a bullish breakout toward the September highs around $1.66.

“Institutional demand remains the foundation of this move. Inflows into spot Bitcoin ETFs remain positive, although they are less robust than at the start of the quarter, while options markets reflect some caution ahead of Friday’s employment report,” Crypto Finance said in a report sent by email.

“Demand for downside protection has increased, but investor positioning remains far from defensive,” the company added.

Risk appetite remains elevated

Interest in digital assets remains strong, as reflected in the Crypto Fear and Greed Index, which stood at 72 in the “Greed” zone on Monday, down only slightly from 74 the previous day.

The persistence of this risk appetite suggests that the market trend across the cryptocurrency sector has shifted, increasing the likelihood of further gains.