Bitcoin, XRP decline as regulatory pressure mounts

Bitcoin and XRP fell on Thursday as a cluster of headwinds—including regulatory uncertainty and tepid ETF inflows—continued to weigh on digital asset markets.

The leading cryptocurrency, bitcoin, declined 2.3% to $61,200, extending losses from the prior session. XRP, the fifth-largest token by market value, hovered near $1.00, down 1.8% and approaching a key psychological level.

Analysts cited a deteriorating regulatory backdrop as a primary drag. In the U.S., lawmakers have intensified scrutiny of the sector, with proposals targeting stablecoins and exchange operations gaining traction. Meanwhile, global regulators have signaled a more cautious stance toward crypto-related financial products, further dampening investor appetite.

Exchange-traded fund flows also remained lackluster. Bitcoin ETFs recorded net outflows of $120 million on Wednesday, according to data provider SoSoValue, marking the third consecutive day of withdrawals. Spot-based products have struggled to sustain inflows since their January launch, with total net outflows reaching $580 million over the past month.

Traditional markets offered little reprieve. U.S. equities slipped as Treasury yields edged higher, while the dollar strengthened against major peers. Risk assets broadly retreated, with gold and oil prices also declining.

The decline in XRP came despite a recent court ruling favoring Ripple Labs in a long-running dispute with the U.S. Securities and Exchange Commission. The token’s resilience near $1.00 suggests some support at that level, though traders warned of potential downside if selling pressure persists.

Market participants will monitor upcoming regulatory hearings and macroeconomic data, including U.S. inflation figures due Friday, for further direction.