## XRP Rallies Past $2 Mark: What's Driving This Crypto News Wave?

**XRP** broke through a key resistance level on Friday, posting a **4.19% daily gain** to reach **$2.09**, marking strong momentum for the token. This rally reflects a confluence of factors reshaping trader sentiment around one of crypto's most scrutinized digital assets.

### The ETF Effect: Capital Flowing Into XRP Products

Spot XRP exchange-traded funds continue to attract meaningful capital. According to market tracking, the funds recorded **$13.59 million in net inflows on January 2nd**, with cumulative inflows since their launch totaling approximately **$1.18 billion**. This consistent fund activity stands in sharp contrast to weaker bitcoin ETF inflows during the same window, suggesting traders are actively rotating into XRP-specific exposure rather than chasing broad crypto market movements.

The capital flow supports XRP's sustained price action, even as the broader crypto landscape shows mixed signals. This divergence signals that **token-specific catalysts**—not just general risk appetite—are fueling XRP's outperformance.

### Why the Regulatory Mood Shift Matters

A notable shift in the regulatory landscape has caught traders' attention. The departure of **Caroline Crenshaw** from the **U.S. Securities and Exchange Commission** has reset expectations around how the agency may approach digital assets. Crenshaw had been one of the SEC's staunchest critics of crypto spot ETF approvals and had openly opposed the commission's settlement in the long-standing **Ripple** litigation.

With her exit, market participants are recalibrating their assumptions about potential policy direction. The possibility of a more balanced regulatory stance—particularly toward exchange-traded crypto products—has given traders confidence to position more aggressively in XRP.

### Legislative Timeline as Hidden Catalyst

Beyond SEC leadership changes, anticipation around potential U.S. crypto legislation is keeping XRP in focus. A possible **Market Structure Bill markup scheduled for January 15th** has maintained elevated regulatory expectations heading into Q1. For XRP, which has been at the epicenter of U.S. regulatory scrutiny for years, clearer market structure rules represent a potential turning point—making legislative developments a recurring catalyst for the token.

### How XRP Stacks Against Major Competitors

The divergence between XRP's performance and other major cryptocurrencies underscores how localized drivers now dominate market dynamics. While XRP climbed to **$2.09**, **Bitcoin** remained anchored near **$91.31K** with modest upside, and **Ether** hovered around **$3.13K** with similarly limited movement.

This disconnect reflects the maturation of crypto markets, where **ETF flows** and **regulatory headline risk** can create significant divergences between individual tokens—even among the largest by market cap. Traders who understand these asset-specific dynamics have clear opportunities to outperform in this environment.

The key takeaway: XRP's recent strength isn't riding on broad crypto euphoria. It's driven by tangible capital inflows, shifting regulatory perceptions, and legislative possibility—a combination that suggests the current momentum could extend if positive developments materialize.