XRP continues to stand out in the crypto landscape as crypto capital becomes increasingly selective, favoring focused plays over broad market rallies. Amid fluctuating demand and shifting investor sentiment, market participants are rotating toward more resilient assets, revealing stronger conviction behind strategic tokens like XRP and ETH.

Macro Conditions Drive Capital into Targeted Cryptos

Investor activity in Asia rebounded modestly, with Bitcoin trading around $114,610—a 1.4% increase—following a prior market downturn. Ether, however, took the lead with a robust 5.8% rise to $4,370.73, signaling strategic capital flow into Ethereum. The CoinDesk 20 index, which tracks the performance of the largest crypto assets, rose 3.5% to above 4,078, pointing to a selective revival in sentiment.

Gracie Lin, CEO of OKX Singapore, pointed to the growing ETH/BTC ratio as a reflection of shifting investor interest. “Crypto capital is getting more selective,” Lin noted. She clarified that this isn’t the beginning of a typical ‘altseason,’ but rather a tactical movement into Ethereum amid impending macroeconomic triggers like the Jackson Hole symposium and updated U.S. inflation metrics.

Bitcoin Faces Cooldown Despite Previous Momentum

Fresh data from CryptoQuant confirms Bitcoin’s momentum has cooled. Demand for BTC has receded from 174,000 in July to just 59,000 currently. Additionally, inflows into Bitcoin ETFs have dwindled to their lowest levels since April. The slowdown reflects a broader market reassessment by institutions and whales alike.

Massive profit-taking has further applied downward pressure. On August 16 alone, whales netted $2 billion in realized gains, bringing total profits since July to an impressive $74 billion. CryptoQuant analysts now describe the climate as a “bullish cooldown phase,” flagging the $110,000 mark as a critical support level sustaining BTC’s current structure.

Selective Strategies Signal More Mature Crypto Market

As speculative interest softens, players are increasingly placing calculated bets. According to a Singapore-based market maker Enflux, enthusiasm for altcoins has waned relative to last week. However, assets like BNB reaching new highs and the operational soundness of projects like Hyperliquid continue to attract focused capital.

“This shows the altcoin market is no longer a homogeneous trade,” Enflux shared in a note to CoinDesk. “Institutional confidence is driving concentrated investments aligned with clearer macro narratives.” Rather than chasing broad upswings, investors are opting for quality over hype, a shift that implies a more disciplined and long-term view of digital assets.

This evolving trend is benefiting robust ecosystems like XRP Ledger and Ethereum. As capital gravitates toward resilience, platforms offering solid utility and scalability are positioned to capture lasting attention in an otherwise cautious market.

Market Movers and Global Trends

Bitcoin (BTC): Slight recovery of 1.4% propelled BTC to just over $114,000. While altcoins outperformed, bitcoin dominance neared a six-month low, underscoring capital shifts.

Ethereum (ETH): Ether’s 5.8% rise emphasized ongoing capital realignment favoring major layer-1 networks with strong developer traction and institutional backing.

Gold Outlook: UBS now forecasts gold to reach $3,600 per ounce in Q1 2026. Rising demand is spurred by economic concerns in the U.S., rising ETF activity, and intensified purchasing by central banks.

S&P 500 Dynamics: The Nasdaq dipped 0.68% while the S&P 500 fell 0.26%, reflecting investor preference for defensive sectors ahead of anticipated comments from the U.S. Federal Reserve’s Jackson Hole meeting.

Related: XRP Price: $12M Max Pain for Bears

Industry News and Policy Developments

• Winklevoss Twins channel $21 million to Republican campaigns ahead of next year’s congressional elections (CoinDesk).
• Crypto firms in the UK push for a national stablecoin strategy to stay competitive globally (CNBC).
• BitMEX founder joins longevity research initiatives after presidential pardon (Bloomberg).

A detailed chart depicting ETH’s rising dominance over BTC amid selective investor positioning.