Trump’s Crypto Strategic Reserve Announcement Sends Ripple and Bitcoin to Exchanges
Massive Inflows of XRP and Bitcoin to Exchanges Follow Trump’s Announcement
Shortly after U.S. President Donald Trump revealed plans to include XRP and Bitcoin in the U.S. crypto strategic reserve, billions of XRP tokens and thousands of Bitcoin were sent to exchanges. This sudden influx of assets may have contributed to the rapid price reversals following a surge.
Whales Drive XRP Inflows
According to an on-chain analysis firm, CryptoQuant, hourly inflows of XRP reached up to 193 million after Trump’s message, with most of the flows coming from whales – influential holders of XRP executing transactions of 1 million or more.
Bitcoin and Ethereum Inflows Spike
On the other hand, the hourly amount of Bitcoin (BTC) flowing into exchanges increased from 500-1,000 to a high of 6,739 BTC a day after the announcement. Meanwhile, Ethereum (ETH) inflows into exchanges spiked to almost 300,000 in an hour.
Inflows Indicate Selling Pressure
Inflows to exchanges from funds and traders usually imply an intention to sell, as large token holdings are usually stored in cold (or offline) wallets. This suggests that the sudden influx of XRP, Bitcoin, and Ethereum into exchanges may be a sign of selling pressure.
Apparent Demand for Bitcoin in Contraction
CryptoQuant analysts noted that the rise and sudden fall of cryptocurrencies on Monday and Tuesday indicated that real spot demand continued in contraction territory. “Bitcoin apparent demand growth has continued to decline after a period of acceleration in November–December 2024 spurred by the U.S. election results and is now in contraction territory for the first time since September 2024,” analysts said. “Unless Bitcoin demand starts to increase again, sustaining a rally in crypto prices will remain challenging.”
Retail Accumulation Down Since Early November
Apparent demand is an on-chain metric used to gauge the balance between Bitcoin’s production (newly minted coins through mining) and changes in its inventory (coins that have been inactive for over a year). Retail accumulation has been down since early November, as previously reported by CoinDesk.
Conclusion
The sudden influx of XRP, Bitcoin, and Ethereum into exchanges following Trump’s announcement may be a sign of selling pressure, as large token holders transfer their assets to exchanges. The apparent demand for Bitcoin is now in contraction territory, making it challenging for the market to sustain a rally.
FAQs
* What was the impact of Trump’s announcement on the cryptocurrency market?
+ The announcement led to a sudden influx of XRP, Bitcoin, and Ethereum into exchanges, which may have contributed to the rapid price reversals.
* What was the volume of XRP and Bitcoin sent to exchanges after the announcement?
+ Billions of XRP tokens and thousands of Bitcoin were sent to exchanges.
* Who drove the XRP inflows?
+ Whales, or influential holders of XRP, executed transactions of 1 million or more, contributing to the massive inflows.
* What was the impact on Bitcoin and Ethereum inflows?
+ Hourly inflows of Bitcoin and Ethereum increased significantly, with Bitcoin inflows reaching 6,739 BTC and Ethereum inflows reaching almost 300,000 in an hour.
