Cryptocurrency Market Shows Faint Signs of Recovery Amid ETF Flows

The cryptocurrency market showed signs of recovery on Thursday, led by Bitcoin's rise near $78,000.

Ethereum and XRP also followed suit, with Ethereum bouncing off its short-term support at $2,400 and XRP edging higher as bulls aim for a $1.40 breakout.

The cryptocurrency market's appetite for risk assets remains relatively elevated, reflected in the Fear & Greed Index rising to 65 on Thursday from 63 the previous day.

Crypto Exchange-Traded Funds (ETFs) saw inflows totaling $101 million on Wednesday, with Bitcoin attracting ETF inflows and Ethereum and XRP seeing outflows.

However, if Ethereum and XRP continue to experience outflows, supply could weigh on price action and reduce the odds of sustained recovery.