XRP Leads Inflows with $8.5 Million, Surpassing Bitcoin and Ethereum Amid Fed’s Hawkish Stance and Inflation Concerns
Key Highlights:
- XRP records $8.5 million in inflows, outperforming Bitcoin and Ethereum.
- Digital asset investment funds see $415 million in outflows, breaking a 19-week inflow streak.
- Market sentiment shifts due to the Federal Reserve’s hawkish stance and rising inflation data.
XRP Outshines Bitcoin and Ethereum in Weekly Inflows
Recent data from CoinShares reveals a sharp reversal in digital asset investment trends, with $415 million in outflows following 19 consecutive weeks of inflows. Notably, XRP attracted $8.5 million in inflows, surpassing Bitcoin and Ethereum, which both recorded substantial losses.
Bitcoin faced the heaviest impact, with $430 million in outflows, while Ethereum also saw withdrawals totaling $7.2 million. However, Solana led digital asset inflows, securing $8.9 million, followed closely by XRP. Other altcoins, including Sui ($6 million), Cardano ($1.9 million), and Litecoin ($1.2 million), also experienced positive momentum.
Crypto Outflows Driven by U.S. Market Despite XRP Developments
A significant portion of the market outflows originated in the United States, totaling $464 million. Despite the SEC recognizing altcoin ETFs tracking assets like XRP, the U.S. remained at the forefront of negative flows.
However, Germany, Switzerland, and Canada saw strong inflows, with Germany leading at $21 million, followed by Switzerland ($12.5 million) and Canada ($10.2 million). In contrast, Hong Kong and Brazil recorded outflows of $4 million and $2.1 million, respectively.
Among digital asset providers, iShares ETFs recorded $130 million in inflows, while Fidelity ETFs faced $282 million in outflows, indicating shifting investor preferences.
Federal Reserve’s Hawkish Stance and CPI Data Shake Market Sentiment
According to CoinShares, the substantial outflows in digital asset investment products stem from the Federal Reserve’s firm stance on interest rate cuts and the latest inflation report.
On February 12, Fed Chair Jerome Powell reaffirmed a cautious approach to monetary policy, emphasizing that there is no immediate need for rate adjustments. He stated:
“Our policy stance is now less restrictive than it had been, and the economy remains strong. We do not need to be in a hurry to adjust our policy stance.”
Meanwhile, the January U.S. Consumer Price Index (CPI) report revealed a higher-than-expected inflation rate of 3%, up from 2.9% in December. Additionally, the monthly inflation rate rose to 0.5%, surpassing the 0.4% recorded in December.
The Fed’s stance has heightened fears of a potential bear market, as higher inflation data allows the central bank to maintain its cautious approach to rate cuts. Consequently, digital asset investment products have seen significant capital withdrawals.
XRP Price Performance Amid Market Shifts
Despite XRP’s strong inflows, the token’s price remains in a negative trend. Currently trading at $2.71, XRP has dropped 0.67% in the past 24 hours and 15% over the past month. However, the token has gained 11% over the past week, indicating resilience amid broader market concerns.
