XRP traded lower on Monday, falling approximately 1.5% to $1.44. This move extended a difficult week for the digital asset, which has shed nearly 12% of its value over the past seven days, according to market data.
Regulatory Spotlight Intensifies After Exchange Mishap
Heightened regulatory scrutiny followed a significant operational error at South Korean cryptocurrency exchange Bithumb. The platform mistakenly distributed over $40 billion in Bitcoin as promotional rewards, triggering a sell-off. South Korea's Financial Supervisory Service cited the incident as evidence of structural vulnerabilities in digital asset platforms, signaling a push for stricter oversight.
Divergent Signals from Institutional Fund Flows
Investment flow data presented a complex picture. While crypto exchange-traded products (ETPs) overall experienced $187 million in outflows last week, products linked specifically to XRP bucked the trend by drawing roughly $63 million in new capital. Analysts suggested this divergence could indicate a potential stabilization point for the broader market.
Ripple Announces Custody and Staking Expansion
Separately, Ripple, the company associated with XRP, unveiled new custody partnerships with firms Securosys and Figment. The initiative aims to provide institutional clients with enhanced security and the ability to earn yields through staking on proof-of-stake networks like Ethereum and Solana.
Market participants now await the upcoming U.S. Consumer Price Index report, scheduled for release on Friday. The inflation data is widely watched for clues on future monetary policy, which could influence risk appetite across digital asset markets.
