While macroeconomic conditions continue to favor risk assets, major cryptocurrencies like XRP and Solana (SOL) saw notable declines Friday as investors booked profits. Despite strong inflows into crypto ETFs and cooling global tensions, both tokens reversed earlier weekly gains, debate over whether a broader pullback is on the horizon—or if the current dip offers a new buying opportunity.

Bitcoin Holds Steady Near $107K as Investors Take a Breather

Bitcoin (BTC) traded around $107,000 on Friday, showing resilience in the face of mild selling pressure. This level marks a slight dip but still keeps the asset within striking distance of its all-time high near $112,000.

Although BTC’s performance remained largely stable, the same can’t be said for some of the other leading tokens. XRP dropped over 4%, falling to $2.08, while Solana lost 3%, retreating to its critical support level near $140.

Other major assets, including BNB, Ethereum, Dogecoin, and Cardano, also saw slight losses under 2%, signaling a broad yet shallow wave of profit-taking across the market.

XRP and Solana See Profit-Taking Despite Strong Weekly Gains

The sharp declines in XRP and Solana come as something of a surprise to investors who had been riding the wave of positive macro signals and regulatory optimism throughout the week. Both tokens had recorded significant gains earlier, bolstered by renewed institutional interest and easing inflation fears.

However, according to market analysts, the current drop likely represents routine profit-taking rather than the beginning of a broader bearish trend.

“Pullbacks like these are common after strong rallies,” said one trader. “It’s healthy to see some consolidation before the next leg up.”

Macro Tailwinds Still Support a Bullish Outlook

Despite the recent downturn in altcoins, the broader sentiment in the crypto space remains overwhelmingly positive. This is largely due to a combination of favorable economic data, calming geopolitical tensions, and clearer regulatory developments in Asia.

Jeff Mei, COO at crypto exchange BTSE, shared his view via Telegram:

“Conditions are ripe for Bitcoin to surpass its previous all-time high of about $112,000—especially now that the Iran-Israel conflict seems to have de-escalated.”

He added that easing inflation and possible rate cuts by the Federal Reserve could further boost crypto markets. The Fed is under increasing pressure as the U.S. economy shows signs of slowing price growth, with some analysts suggesting that interest rate reductions may come sooner than anticipated.

ETF Inflows and Institutional Buying Provide Market Support

The outlook is further strengthened by continued inflows into crypto ETFs, which are widely seen as a key indicator of growing institutional interest. ETF-related buying has helped cushion recent price dips and remains one of the main bullish forces in the market today.

At the same time, traditional equities also reflect rising risk appetite. The S&P 500 hit a new high this week, reinforcing the idea that markets, both traditional and digital, are responding positively to reduced economic pressures.

Eugene Cheung, Chief Commercial Officer at OSL, noted:

“Bitcoin hovering around $107K during a period of geopolitical uncertainty shows strong investor confidence. ETF inflows remain positive, which is a great sign.”

Hong Kong Leads with Pro-Crypto Regulation in Asia

One of the most exciting developments for the crypto industry this week came from Hong Kong, where policymakers unveiled Policy Statement 2.0—a revamped approach to regulating digital assets.

The new framework sets out licensing paths for stablecoin issuers, tokenization platforms, and crypto trading services, aiming to position Hong Kong as Asia’s digital asset hub. This move stands in contrast to the regulatory uncertainty in the U.S., where fragmented policies continue to hinder industry growth.

According to Cheung, these clear guidelines are already having an impact:

“Hong Kong’s framework could enable tokenization of real-world assets (RWAs), bringing fresh capital and legitimacy to the market.”

Final Thoughts: Temporary Dip or Warning Sign?

The decline in XRP and Solana should be viewed in context. While they led Friday’s selloff, the broader crypto market is supported by strong macroeconomic conditions, bullish ETF activity, and regulatory momentum in Asia. As such, the pullback may be more of a strategic pause than a sign of long-term weakness.

Bitcoin’s steady performance just below its all-time high underscores this cautious optimism. If macro trends continue and institutional capital keeps flowing in, the current dips in altcoins may present buying opportunities rather than red flags.

Investors should continue to monitor key support levels and regulatory developments, particularly in Asia, to navigate the next phase of this maturing bull cycle. While short-term corrections are inevitable, the long-term structure still points to growth and adoption—especially for projects with clear utility and strong institutional backing.