The post XRP Breaks Bitcoin Correlation as Banking Partnerships Drive Supply Squeeze appeared on BitcoinEthereumNews.com.

Tony Kim
Jan 08, 2026 07:32

XRP trades at $2.11 after surging 25% while Bitcoin fell 2.8%, as exchange reserves hit two-year lows amid institutional accumulation and Japanese banking deals.

Ripple has shattered its typical correlation with Bitcoin in spectacular fashion, climbing 25% over the past two weeks while the leading cryptocurrency declined 2.8%. Trading at $2.11, XRP is emerging as a standout performer in what analysts are calling the early stages of altseason, driven by institutional partnerships and a supply crunch that has exchange reserves at their lowest levels since 2024. Banking Breakthrough Fuels Institutional Demand Two watershed developments are reshaping XRP’s institutional landscape. Ripple’s conditional approval to charter the Ripple National Trust Bank marks a pivotal moment for crypto-traditional finance integration, potentially unlocking regulated custody and payment services. Simultaneously, the company’s alliance with Japanese financial giants Mizuho Bank and SMBC Nikko signals expanding adoption of the XRP Ledger in one of the world’s most sophisticated banking markets. Network activity has spiked over 50% in the past fortnight, according to on-chain analytics, while Binance spot data shows exchange reserves plummeting to two-year lows. This supply squeeze indicates large holders are moving tokens into long-term storage, reducing available supply just as institutional demand accelerates. “The Japanese banking partnerships represent a fundamental shift in how traditional finance views XRP,” notes cryptocurrency analyst Sarah Chen at Digital Asset Research. “We’re seeing institutional capital flow into an asset that was largely written off during the SEC litigation period.” Technical Momentum Builds Despite Pullback XRP’s recent 7.17% daily decline to $2.11 appears to be healthy profit-taking rather than trend reversal, with technical indicators remaining constructive. The MACD histogram at 0.0424 continues showing bullish momentum, while the RSI sits comfortably in neutral territory at 55.57, suggesting room…

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Filed under: News - @ January 8, 2026 8:27 am