Despite the net weekly outflows, three consecutive days of net inflows from Wednesday to Friday underscored the robust institutional demand for XRP, supporting the bullish short- to medium-term outlook for the token.
Notably, US XRP-spot outflows were modest relative to the US BTC-spot ETF market, which saw total net outflows of $1.32 billion in the reporting week ending January 23.
US Senate Delays Crypto Legislation Markup Votes
The US Senate Banking Committee and Senate Agriculture Committee delayed progress of the Market Structure Bill, weighing on demand for XRP.
Reports of the Agriculture Committee delaying the release of its draft text for the Market Structure Bill triggered an XRP pullback in early January. Meanwhile, the Banking Committee postponed its markup vote on its draft text on January 15, increasing selling pressure.
The Agriculture Committee released its draft text on January 21 but had to delay its markup vote, set for January 27, due to adverse weather.
These events dampened hopes for crypto legislation to be in place by the end of the first quarter.
XRP’s price action underscored the token’s sensitivity to crypto-related regulatory developments. The token rallied to a January 6 high of $2.4151 after the Banking Committee announced a markup vote date of January 15. However, XRP tumbled to a low of $1.8489 in the week ending January 25, reflecting investor disappointment.
Crypto experts view the Market Structure Bill as key for increased XRP utility. The passing of the Market Structure Bill could be the next price catalyst. For context, XRP surged 14.69% on July 17 after the US House of Representatives passed the Market Structure Bill to the Senate. However, the US government shutdown, alongside delays to the launch of XRP-spot ETFs, weakened demand for XRP, which dropped to a December low of $1.7712.
Given optimism that the Senate will eventually pass crypto-friendly legislation, XRP would likely retarget its all-time high of $3.66 should the Senate pass the Bill.
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