XRP Pops 5.6% As BTC Hits $87K - $30M ETF Inflows Fuel Rally, but 'Dead Cat' Risk Lingers

The crypto market flashed signs of life as Bitcoin reclaimed the $87,000 area after slipping below $85,000 — and Ripple’s XRP has moved in step with the bounce. CoinGecko data shows XRP surged 5.6% on the daily chart, but the short-term recovery masks broader weakness: the token remains in the red across most other time frames, down 4.8% over the week, 6.4% across the past 14 days and month, and 16.6% since December 2024. Why the uptick? Traders point to a few likely catalysts. One surprise is the Bank of Japan’s decision to lift interest rates to their highest level since 1995 — normally a move that encourages risk-off flows, yet markets have rallied instead. More concretely for crypto, XRP-focused exchange-traded funds reportedly attracted about $30 million in inflows on Dec. 18, 2025. ETF money helped propel Bitcoin and Ethereum to new highs during 2025’s market cycle, and some analysts think a similar inflow-driven pattern could lift XRP. Another immediate driver appears to be classic buy-the-dip behavior. XRP touched $1.77 on Dec. 17 — its lowest level since April — a pullback that may have drawn bargain hunters and longer-term holders back in. That said, caution is warranted. The market remains fragile and volatile, investor sentiment is subdued, and there’s a real risk this move is a short-lived “dead cat bounce” rather than a sustained recovery. Whether XRP can push past the psychologically important $2 level and hold it will depend on continued ETF flows, broader market momentum, and macro risk appetite. For readers tracking targets and analyst calls, see our previous coverage: “XRP Gets a $4.42 Price Target.” Read more AI-generated news on: undefined/news