XRP Climbs as Crypto Market Dips Ahead of Inflation Data

XRP showcased remarkable resilience in the digital asset market today, gaining ground while major cryptocurrencies like Bitcoin and Ethereum experienced declines. This outperformance comes amid heightened anticipation surrounding newly released U.S. inflation data that has generated significant unease across financial markets.

While the broader digital currency landscape is currently facing substantial headwinds, XRP has emerged as a notable standout. Bitcoin has dipped approximately 2.3% to around $102,400, reversing most of the gains it made the previous day. Ethereum followed with a steeper decline of 3.8%, trading near $2,450, while Solana dropped by roughly 3.6% to $171.

Investors have adopted a cautious stance in advance of the U.S. Bureau of Labor Statistics releasing its April Consumer Price Index (CPI) data. Market participants remain concerned that a stronger-than-projected inflation reading could push Treasury yields higher and strengthen the U.S. dollar, both of which typically exert pressure on risk-sensitive assets like crypto.

Bitcoin had seen a short-term rally on Monday, momentarily eclipsing the $105,000 threshold. However, profit-taking quickly ensued, especially with traders wary of potentially hawkish monetary signals. The crypto market’s fragility is further reflected by data from major trading platforms, which indicate an 11% decline in open interest this week from the all-time highs seen in January—a clear signal of risk-off behavior. Even so, long-term holders continued accumulating positions.

A major institutional move underscored this trend, as Strategy added 13,390 BTC worth nearly $1.34 billion between May 5–11. This increased its overall Bitcoin holdings to over 568,000 BTC, or approximately 2.7% of total circulating supply, reinforcing long-term corporate confidence in crypto assets despite short-term volatility.

Among altcoins, XRP bucked the trend. The token advanced by about 3% and is now up nearly 5% on the year, settling around $2.50. This upward momentum is partly linked to the positive impact of Ripple’s recent agreement with the U.S. Securities and Exchange Commission, which concluded in March and resulted in a reduced penalty of $50 million. Furthermore, traders are keeping close watch on the forthcoming launch of CME’s cash-settled XRP futures, scheduled for May 19, which adds another bullish layer to XRP’s narrative.

Ethereum’s downward swing comes hot on the heels of its recent Pectra upgrade, aimed at improving efficiency and cutting transaction costs. Although early metrics show some fee relief, Ethereum continues to lose ground in terms of total value locked to its Layer-1 rivals, many of which offer more competitive base fees to developers and users.

Solana continues to play the role of a high-volatility asset in the space, moving sharply in both directions. April’s market-driven disruptions had seen Solana DEX volume soar past $35 billion, fueling optimism. Yet that hasn’t helped it escape Monday’s correction amid the broader risk aversion outlook.

Looking ahead, many eyes are fixed on Bitcoin’s key psychological floor of $100,000. If the CPI data suggests cooling inflation, it could revive risk appetite and help Bitcoin retain its post-halving strength. On the flip side, quicker inflation growth may push more capital out of digital assets and into safer instruments like Treasury bills.

Currently, options traders are estimating a roughly 2.5% one-day move for Bitcoin, forecasting a price swing of around $2,500 in either direction depending on how CPI figures land. Meanwhile, market liquidity remains relatively low compared to the record-setting inflows from earlier this year. This is largely due to widened bid-ask spreads and uncertainty over the U.S. Federal Reserve’s monetary policy outlook, with three more rate decision meetings on the calendar for the rest of 2025, beginning with one set for June 11–12.

Related: Expert Advice: Sell XRP If You’re Confused

In this fluid macroeconomic environment, XRP has proven its strength and strategic independence. Bolstered by recent legal clarity and anticipation of institutional products, the token is enjoying a unique moment of momentum, standing tall even as much of the market braces for the worst.