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Bitcoin’s Struggles Continue as XRP Soars: What’s Fueling the Crypto Shift?

Key Takeaways

  • Bitcoin faces massive outflows: $571 million withdrawn, contributing to a $924 million two-week decline.
  • XRP dominates altcoin inflows: $38.5 million added, totaling $819 million since November 2024.
  • Market reacts to macro uncertainty: Concerns over U.S. trade policies and SEC lawsuits shape investor sentiment.

Bitcoin Leads Crypto Investment Outflows

Bitcoin investments took a major hit last week, with $571 million in outflows, contributing to a broader $924 million decline in the past two weeks. The bearish sentiment stemmed from macroeconomic concerns, inflation, and trade policy uncertainties linked to U.S. President Donald Trump’s trade tariff plans.

Adding to the pressure, short-Bitcoin positions surged, with $2.8 million in inflows for short-BTC products. Meanwhile, trading turnover plummeted, dropping from $22 billion two weeks ago to $13 billion last week, signaling a cautious approach by investors.

Regional Breakdown

  • United States: Led the outflows with a staggering $560 million withdrawn.
  • Europe: Saw positive inflows, with Germany ($30.5 million) and Switzerland ($15.8 million) emerging as key contributors.

XRP Leads the Altcoin Rally

While Bitcoin struggled, XRP emerged as the strongest-performing altcoin, attracting $38.5 million in net inflows last week. Since Donald Trump’s election victory in mid-November 2024, XRP has recorded a total of $819 million in inflows—a sign of investor optimism that the SEC may drop its lawsuit against Ripple in 2025.

Other Altcoin Performances

  • Solana (SOL): $8.9 million in inflows.
  • Ethereum (ETH): $3.7 million added.
  • Sui (SUI): $1.47 million in inflows.

What’s Next?

With Ripple’s next legal filing due on April 16, 2025, investors remain hopeful for a resolution before then. Meanwhile, Bitcoin’s struggle continues as macro concerns weigh on the market. Will the crypto giant rebound, or will altcoins continue to dominate inflows? Investors are watching closely.