Bitcoin, XRP Face Selling Pressure as SEC Delays and Rising Yields Weigh on Crypto

Bitcoin and XRP are facing renewed selling pressure as regulatory delays, weakening ETF demand and rising U.S. Treasury yields create a challenging backdrop for the cryptocurrency market.

Bitcoin is trading near $62,800, while XRP is hovering around the critical $1 support level. The latest decline comes as progress on the U.S. Clarity Act stalls in the Senate and the Securities and Exchange Commission reportedly prepares to further delay its long-awaited “innovation exemption.”

The proposed exemption is designed to make trading tokenized securities on blockchain networks easier under existing securities laws. However, concerns from the White House and Wall Street regarding its legal foundation and potential market impact have slowed progress.

The SEC has also postponed a planned meeting concerning “Reg Crypto,” an initiative aimed at developing fundraising rules for crypto token projects. No new meeting date has been announced.

Additional uncertainty emerged after index provider MSCI opened a consultation on potentially removing non-operating companies from its equity indices. Bitcoin-focused firms Strategy and Metaplanet are among the companies that could be affected.

Institutional demand is also showing signs of weakness. U.S. spot Bitcoin ETFs recorded approximately $333 million in net outflows this week, reversing the previous week’s $853 million in inflows. Year-to-date outflows have now exceeded $4 billion.

Macroeconomic conditions are adding further pressure. A $25 billion auction of 30-year U.S. Treasury notes on Thursday produced yields as high as 5.22%. Higher long-term yields increase borrowing costs while making non-yielding assets such as Bitcoin relatively less attractive.

For XRP, the $1 level remains particularly important. A sustained break below this support could encourage additional selling, especially among investors who accumulated XRP at lower prices in late 2024.

Despite near-term weakness, some analysts remain optimistic. Matt Mena, senior crypto research strategist at 21Shares, highlighted crypto’s July outperformance against major U.S. stock indices. He believes improving fundamentals could support a strong third quarter and potentially an explosive fourth quarter, with Bitcoin reaching $100,000 alongside significant gains for Ether, Solana and HYPE.