XRP Defies Market Trend; Outpaces BTC & ETH Amid Crypto Blood Bath

As digital asset investment products saw a third consecutive week of outflows, Ripple’s XRP bucked the trend with substantial inflows. Major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) experienced significant outflows, leading the market’s negative sentiment.

Several events have likely contributed to these outflows, including the Bybit hack, the Federal Reserve’s hawkish stance, and the crypto market crash.

XRP Overpowers BTC & ETH in Weekly Inflows

CoinShares’ weekly report revealed a record-breaking outflow of $2.9 billion from digital asset investment products, marking the largest weekly withdrawal. This outflow extends a three-week streak, with total withdrawals reaching $3.8 billion over this period.

While major players like Bitcoin (BTC) and Ethereum (ETH) exhibited notable outflows, XRP defied the trend with a significant inflow of $5 million. Bitcoin was hit the hardest by the market’s bearish sentiment, experiencing a substantial outflow of $2.59 billion last week.

Following was Ethereum, with a negative flow of $300 million. Other assets like Solana and Ton also experienced outflows of $7.4 million and $22.6 million, respectively.

Are ETFs Driving the Positive Sentiment?

In stark contrast to the major crypto market trend, XRP gained $5 million in inflows over the past week. The positive trend was led by Sui, with a significant inflow of $15.5 million.

Meanwhile, the US was the country with the largest outflows, followed by Switzerland, Canada, and Sweden. The US saw a total outflow of $2,874 million, whereas Switzerland, Canada, and Sweden exhibited $73.1 million, $16.9 million, and $14.5 million outflows, respectively.

XRP’s notable performance has significantly gained attention. Possibly, the token’s positive sentiment is largely driven by the SEC’s optimistic approach to XRP ETFs. Over the past few weeks, the US SEC has acknowledged XRP ETF applications submitted by multiple asset managers. In the latest development, President Donald Trump announced his decision to include XRP in the national reserve.

However, top crypto assets like BTC and ETH were hit by the recent incidents like Bybit hack and the Fed’s hint at maintaining the current interest rates.

Donald Trump’s Crypto Reserve Sparks Bitcoin vs XRP Debate

Though Donald Trump is adopting BTC, XRP, SOL, and ADA to the national reserve, this has sparked a debate between Bitcoin enthusiasts and XRP Army. While Bitcoin aspirants celebrate the BTC reserve update, they question the addition of XRP. For instance, Bitwise CEO Hunter Horsely, stated, “Many crypto assets have merits, but what we’re talking about here isn’t a US investment portfolio — we’re talking about a reserve, and BTC is the undisputed store of value for the digital age.”

Meanwhile, Cardano Founder Charles Hoskinson backed XRP claiming that it is “great technology, global standard, survived for a decade through many harsh cycles, and has one of the strongest communities.”

Bearish Crypto Market Turns Green

Notably, the crypto market was experiencing severe downturns over the past week, with Bitcoin trading around a low of $85k. This bearish market sentiment has significantly contributed to the outflows exhibited last week.

However, the market has rebounded today, especially driven by Donald Trump’s crypto reserve strategy. While Bitcoin has surged to $93,366, ETH and XRP reached $2,383 and $2.68, respectively. The overall market cap has increased to $3.06 trillion, up by more than 8%.