In crypto’s world of volatility, XRP’s emerging as the most unflappable token days ahead of Donald Trump’s inauguration.
It shot up 12% on Wednesday, and added more gains to stop within kissing distance of $3 after an unexpected decline in a key inflation indicator, the core consumer price index, was released.
While other majors like Bitcoin and Ether managed bumps of only 2% to 4%.
While broader markets grappled with renewed inflation fears earlier in the week, Ripple’s token stood out amid cautious optimism around Trump’s inauguration and growing hopes for altcoin ETFs.
The whales have been quietly buying in — more than $1 billion worth since 12 November — but XRP is also being driven by a spike in South Korean trading activity.
Read more: Crypto’s X(RP) factor emerges from Bitcoin’s shadow
Kimchi premium?
The local crypto scene, often credited with triggering XRP rallies, saw a spike following today’s dramatic arrest of the ousted president, Yoon Suk Yeol. They climbed walls to get him.
Yoon’s 3 December martial law attempt rattled markets, sending XRP down 18% and creating a rare “kimchi discount”, as the token traded at $1.16 on local exchanges compared to $2 globally.
The 15 January arrest appears to have calmed nerves, allowing South Korean XRP trading volumes to exceed $2 billion (seven times that of Bitcoin), pushing local prices 2% above Binance and Coinbase averages, data from CoinMarketCap shows.
Read more: Altcoins are set to enter their ETF era
Trump incoming
But South Korea isn’t the only source of optimism.
Talk of XRP ETFs under the Trump administration has some analysts, including those at JPMorgan, forecasting significant inflows. Potentially between $4 billion and $8 billion, the bank’s analysts say.
However, their report also suggests that interest in crypto ETFs remains limited.
That reflects what experts have told MONIIFY previously. For instance, the lackluster demand for crypto ETFs in Asia may be tied to crypto already being easily accessible to retail traders.
What to watch
On 14 January, literally days ahead of Trump’s return with the promise of a friendlier SEC, the agency dug its heels in against Ripple. It’s not delaying its appeal, which is expected on 15 January, against a court order last year that handed Ripple a partial victory.
Ripple’s leadership, though, hinted winds of change are coming under Trump’s new SEC leadership.
XRP is unbothered. It continues to flirt with $3 a token, even as the combination of regulatory uncertainty and market volatility makes this rally one to watch with caution.
Edited by Ankush Chibber and Amitoj Singh. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
