XRP Faces Steep Decline Against Bitcoin: What’s Next?

XRP has recently endured a steep downturn, underperforming significantly in its trading pair with Bitcoin, raising concerns among investors about the cryptocurrency’s near-term trajectory.

Over the last 12 days, XRP has suffered a sharp decline of over 18% compared to Bitcoin. As of now, XRP is trading at approximately 0.00002120 BTC. Despite news that might usually uplift sentiment, such as the Dubai Land Department choosing XRP Ledger for its tokenization initiatives, this has not translated into positive price action for the Ripple-backed asset.

Additional updates, including the CME Group’s launch of XRP futures contracts on May 18, have also failed to spark recovery. This follows the introduction of similar products for other tokens like Solana (SOL). However, unlike those assets, XRP remains stuck in a bearish rut. Monday saw yet another 1.5% decline against Bitcoin, highlighting the persistent weakness in the asset’s performance.

The lackluster movement hasn’t gone unnoticed across crypto communities. Bitcoin proponents have taken to social platforms to spotlight XRP’s recent collapse. One such remark came from prominent Bitcoin advocate Justin Bechler, who noted on social media that the digital asset had a turbulent two-week performance, posting a tweet that underscored XRP’s 20% slide.

Currently, Bitcoin continues to enjoy robust institutional backing, especially with the increasing inflows into spot ETFs. This strength has only widened the performance gap between BTC and many altcoins, including XRP. Alarmingly, XRP was the only top ten cryptocurrency that ended the past week in the red, while its counterparts pushed forward in positive territory.

As investors examine the reasons behind this growing disparity, some point to regulatory delays concerning a potential spot XRP ETF. Bloomberg analysts forecast that an approval may not come until late 2025. Although there are faint murmurs of movement as early as July this year, the odds of such swift consent remain slim.

Adding a layer of speculation to the mix, rumors of Ripple’s acquisition talks with Circle added temporary buzz to the community. However, the fintech firm swiftly denied the circulation of such informal discussions, leaving the market without a positive fundamental catalyst to rally around.

With these events unfolding, XRP investors — often collectively referred to as the XRP Army — are left grappling with uncertainty. The recent developments suggest that while institutional support and partnership news continue to surface, market sentiment remains firmly anchored in caution.

Until a major trigger shakes XRP out of this downtrend, such as a confirmed ETF approval or a significant strategic partnership, its struggle against Bitcoin may persist. For now, the digital asset remains in the shadow of stronger performers, requiring patience and resilience from its holders.

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

Whether XRP will bounce back remains to be seen. However, what is clear is that despite strategic advancements, market forces and sentiment continue to weigh heavily on its current standing.