Schiff Claims Bitcoin 'Wastes' Energy

XRP is slowly entering one of the most important structural phases in its history. Price action has been mostly bearish and sentiment across the broader crypto market has been cautious, but on-chain data tells a very different story. 

Data from Glassnode shows XRP balances on centralized exchanges falling to around 1.5 billion XRP, their lowest in over a year. This trend is unfolding alongside accumulation from newly launched XRP ETFs, creating conditions that could change the altcoin’s price dynamics heading into 2026.

XRP Exchange Balances Fall To Multi-Year Lows

Data from Glassnode’s XRP balance on exchanges metric points to a clear and persistent downtrend in balances held on crypto exchanges throughout 2025. Earlier in the year, about 4 billion XRP sat on centralized platforms. 

Since then, balances have steadily declined, with a particularly sharp drop visible in the fourth quarter of the year. As it stands, exchange-held XRP has compressed toward the 1.5 billion mark, one of the lowest levels recorded in recent years.

This decline has occurred despite the current downtrend in XRP’s price action, meaning that some holders are increasingly opting to move tokens into longer-term custody, even as some others are selling off their holdings. This trend is important for bullish momentum, as falling exchange balances reduce near-term sell pressure and make cryptocurrencies more sensitive to incoming demand.

At the center of this supply contraction are US-based Spot XRP ETFs, which have risen as a powerful new source of demand. Market estimates indicate that about 750 million XRP have been absorbed by the six Spot ETF products since the first one launched in November. 

As ETFs continue pulling XRP off exchanges, the pool of liquid supply available to the spot market keeps shrinking. This dynamic does not force an immediate price response, but it changes the balance between supply and demand, and we could start to see the effects on the crypto in 2026.

Weekly Chart Points To Exhaustion As XRP Sits On Support

While on-chain data highlights tightening supply, technical conditions are beginning to reflect a similar theme. Crypto analyst Steph Is Crypto recently pointed out that XRP is now sitting on an important horizontal support zone on the weekly timeframe. 

The chart shows XRP’s price action is now compressing into the $1.90 to $2.00 range after an extended decline from mid-2025 highs near $3.50, placing XRP back at a level that previously acted as a launch point earlier in the cycle. 

Furthermore, the weekly Stochastic RSI is now in extreme oversold territory and this means that selling pressure has already done much of its work.

Steph’s analysis noted that turning points tend to form when downside momentum is exhausted and there is little energy left for sellers to continue pushing price lower. Based on this, traders can expect XRP to transition into bullish momentum in early 2026.

Featured image from Gemini, chart from TradingView

According to CoinGlass data, Shiba Inu saw $6.71 million in futures outflows in the last 24 hours, which translates to 933,890,048,712 SHIB.

Outflows remain significant as it suggests buying on the part of derivatives traders even as Shiba Inu attempts year end recovery.

Following days of drop toward the Christmas holiday, Shiba Inu reversed at a low of $0.00000698; however, bulls were unable to make a definitive move.

Shiba Inu resorted to range trading between $0.00000698 and $0.00000729, where it still remains even at the time of writing.

Shiba Inu was trading up 0.05% in the last 24 hours to $0.000007224 but down 2.83% in the last seven days. The current price action in the markets suggests investors are reassessing risk appetite in year-end positioning.

SHIB has spent weeks trending downward, frustrating bulls. On the other hand, it seems the forces shaping the next move are quietly shifting beneath the surface. Some analysts believe that the market may be far closer to an inflection point than price action alone suggests.

2026 presents optimism

2025 may end with prices in the red, the year saw real institutional adoption, setting the groundwork for 2026’s next phase of real activation.

In a recent report, Galaxy revealed 26 crypto, Bitcoin, DeFi and AI predictions for 2026.

Among such predictions that might benefit Shiba Inu is that of potential ETFs in the year 2026. Shiba Inu saw an inclusion in legacy asset manager T.Rowe crypto ETF filing, a remarkable milestone for the dog coin, signifying institutional interest.

Galaxy predicts more than 50 spot altcoin ETFs and another 50 crypto ETFs (excluding spot single-coin products) will launch in the U.S. Following the SEC’s approval of generic listing standards, Galaxy expects the pace of spot altcoin ETF launches to accelerate in 2026.

2025 saw more than 15 Solana, XRP, Hedera, Dogecoin, Litecoin and Chainlink spot ETFs coming to the market. Galaxy expects other major assets to follow with their own spot ETF filings. In addition to single-asset products, multi-asset crypto ETFs and leveraged crypto ETFs are predicted to launch.

Since the short squeeze in mid-December, Bitcoin has yet to make any significant price gain, facing multiple rejections at the $90,000 price zone. The maiden cryptocurrency is presently consolidating within the $87,000, while investors patiently anticipate a clear market direction. According to pseudonymous analyst Sunny Mom, recent on-chain analysis suggests that bearish sentiment will remain dominant in the coming months following the initial extended correction in October and November.

Why Rising Short-Term Bitcoin Supply Is Flashing A Rare Bearish Signal

In a QuickTake post on December 27, Sunny Mom draws attention to the BTC HODL waves, which show the rising share of short-term holders coinciding with falling prices, flipping a metric that typically supports bullish narratives. Historically, an increase in short-term holder (STH) supply, coins held for less than 155 days, suggests fresh capital is entering the market ahead of sustained rallies. However, the analyst described the current move as “passive bag-holding” rather than signaling “new blood.”

This is because investors who bought during the $120,000 rally in October, driven by FOMO, alongside dip buyers in November, now sit on unrealized losses, thereby creating a price setup that alters market behavior. Sunny Mom explains that each relief rally is met with selling pressure as these holders attempt to exit at breakeven, effectively turning the expanding STH cohort into a ceiling rather than a floor. Therefore, price rebounds struggle to gain traction.

The renowned analyst explains that the market is witnessing an emotional toll that is growing visibly on-chain. Notably, there have been repeated spikes in Net Realized Loss (NRL) since October liquidations, suggesting that capitulation is underway, with investors locking in losses after months of endurance. Sunny Mom describes the process as a “dull knife” finally cutting deep, an indication that weaker hands are being forced out, not through a single crash, but through prolonged exhaustion.

Bitcoin In Demand Vacuum As Likely Fall Below $80,000 Remains Active

In further analysis, Mom attributes the current bearish setup to a demand vacuum. The market expert explains that exchange reserves are sitting near multi-year lows, signaling limited immediate sell-side liquidity. At the same time, long-term holders (LTHs) show little interest in distributing coins, reinforcing the view that conviction capital remains intact.

Therefore, the problem lies on the demand side. With macro uncertainty still elevated, new buyers appear hesitant to step in, creating a demand vacuum. This also creates thin order books, meaning even modest sell pressure can push prices sharply lower.

While some market watchers target a potential recovery in Q1 2026, citing expectations of rate cuts and improved global liquidity. Mom predicts Bitcoin may need a “final shakeout” to resolve the imbalance and reset the market for a bullish breakout. The analyst points to a potential move below $80,000 as a liquidity hunt that could flush remaining weak hands and allow larger holders to reaccumulate.

Robinhood handed out $750,000 worth of Bitcoin to users on the second day of its holiday countdown event. The campaign launched on Friday with Dogecoin prizes and high-quality item giveaways.

The company appeared to have resolved the app glitches that frustrated users on the first day, when many reported being unable to redeem rewards.

In addition to Bitcoin, the company offered Hawaii vacation packages and Away suitcases on the second day.

Robinhood offers stocks, options, and crypto trading through its mobile app. The company has used giveaways to drive user engagement and platform activity.

Bitcoin may post steady returns over the next ten years, but exceptionally large year-on-year gains are unlikely, according to Bitwise chief investment officer Matt Hougan.

“I think we’re in a 10-year grind upward of strong returns. It’s not spectacular returns, [but] strong returns, lower volatility, some up and down,” Hougan said on CNBC on Friday.

Hougan is sticking with his forecast that 2026 will be a positive year for Bitcoin (BTC), an outlook he first shared in July ahead of Bitcoin’s run to a new all-time high of $125,100 in October. “I think next year will be up,” Hougan said.

“Slow-moving institutional buying” is protecting Bitcoin’s downside

Meanwhile, ReserveOne chief investment officer Sebastian Beau said it is still unclear whether Bitcoin’s four-year cycle is “dead.” “All-time highs were 125,000, that was in early October, we are bordering on $87,000 today, down 30% relatively quickly, pretty painful,” Beau said.

Market participants are divided on whether the cycle has ended, with the timing of Bitcoin’s October highs mirroring past four-year cycle peaks, suggesting a possible down year in 2026.

Hougan said the “fast-moving retail crowd” is one reason behind Bitcoin’s year-end decline, as retail investors rotated out in “anticipation of that four-year cycle.”

Bitcoin is trading at $87,818 at the time of publication, down 3.81% over the past 30 days, according to CoinMarketCap.

Crypto analyst and XRP advocate Levi Rietveld recently shared a short post on X stating that “$XRP is built for this,” alongside a video clip of US Treasury Secretary Scott Bessent speaking about reviewing regulatory barriers around blockchain, stablecoins, and new payment systems like the crypto industry.

Bessent’s comments focused on reforming financial infrastructure so capital markets can function more efficiently for mainstream users. In turn, Rietveld viewed those comments as closely matching the original purpose XRP was created to serve.

What XRP Was Designed To Do

In the video clip that Levi Rietveld shared on X alongside his statement of XRP being built for this, Scott Bessent outlined a policy direction that places emphasis on evaluating regulatory impediments to blockchain technology, stablecoins, and new payment systems. 

Bessent stated that officials will take a close look at regulatory impediments to blockchain, stablecoins, and new payment systems and consider reforms to unleash the power of American capital markets. Notably, this plan corresponds to a more crypto-positive approach adopted by the current US administration under President Donald Trump. 

These are a part of efforts by the US government to modernize crypto regulation and define clearer frameworks for digital assets, including proposed acts aimed at bringing clarity to markets and stablecoins. One example of this is the Clarity Act, a legislative proposal that aims to clearly define the regulatory treatment of digital assets, separate payment-focused tokens from securities, and assign clearer oversight roles to agencies such as the SEC and CFTC. 

Bessent’s comments focused on improving payment systems and removing friction around new financial technology. XRP proponents like Levi Rietveld would quickly point out that the theme aligns closely with how the cryptocurrency and the XRP Ledger were engineered. 

The XRP Ledger works with transparent settlement, predictable transaction costs, and finality that does not depend on mining or complex smart contract execution. These characteristics are important for institutions that need clarity and reliability. 

In practice, XRP’s real-world role is most visible through payment solutions developed by Ripple. Banks and other financial institutions do not need to hold large balances of foreign currencies, since XRP can be used as an intermediate asset during settlement. 

XRP’s Current Regulatory And Institutional Position

Progress on regulatory clarity has been helping real institutional infrastructure around XRP. Multiple Spot XRP ETFs have gained approval and launched in 2025 and early numbers are positive, with over $1.14 billion worth of inflows. Bloomberg estimates suggest these funds could draw $5 billion to $7 billion in institutional capital by 2026. 

This creates new avenues for asset managers, pension funds, and other institutional allocators to hold XRP within traditional investment vehicles. All these cannot be possible without the clear framework for blockchain, stable coins, and new payment systems proposed by Bessent.

Featured image from Unsplash, chart from TradingView