XRP traded near $1.38 early Monday, declining 2.29% over the past 24 hours, as a broad selloff in digital assets dragged down major cryptocurrencies including bitcoin and ether. The token's retreat came despite a wave of institutional inflows into spot XRP exchange-traded funds (ETFs), which recorded net inflows of $60.5 million last week.
The wider crypto market shed 3.8% of its total value, falling to approximately $2.56 trillion, according to data from Crypto.news. Forced liquidations exceeded $661 million as leveraged positions were unwound, adding to the downward pressure. XRP's slide extended from Friday's close near $1.43, with the token dipping as low as $1.3800 during Monday's session before recovering slightly to $1.3858, according to Investing.com.
Trading volume for XRP reached $1.89 billion, while its market capitalization hovered around $85.64 billion. The token's decline was part of a broader risk-off move across digital assets, with bitcoin falling below $77,000 and ether dropping to near $2,100. Analysts are divided on whether this represents a temporary shakeout or the beginning of a deeper correction.
Spot XRP ETF inflows totaled $60.495 million for the week of May 11-15, according to data from MetaEra and SoSoValue cited by KuCoin. Bitwise's XRP fund led with $25.6775 million in net inflows, followed by Franklin Templeton's XRPZ product, which attracted $21.0402 million. Despite this institutional demand, the impact on XRP's spot price has been limited, as selling pressure from leveraged positions outweighed fresh capital.
Riya Sehgal, research analyst at Delta Exchange, noted that crypto prices remain under pressure after bitcoin encountered resistance near $82,000. Akshat Siddhant, lead quant analyst at Mudrex, added that bitcoin's hold near $77,000 reflects a risk-off stance driven by Middle East tensions. Vikram Subburaj, CEO of Giottus, highlighted that traders are looking for signals on U.S. interest rates from the Federal Reserve's minutes, set for release on May 20.
On the regulatory front, the U.S. Senate Banking Committee advanced the Digital Asset Market Clarity Act of 2025 to the Senate floor on May 14 with a 15-9 vote. Two Democrats supported the move but indicated they may withdraw support if the bill changes during further negotiations. The legislation aims to provide clearer guidelines for digital asset markets, though its ultimate passage remains uncertain.
Market observers caution that rising oil prices, higher Treasury yields, or hawkish Fed minutes could further dampen risk appetite. XRP may continue to move in tandem with bitcoin, regardless of ETF inflows or regulatory developments. A decisive break below Monday's low could challenge the narrative that institutional demand is a stabilizing force for the token.
