Introduction Good morning, and welcome to today’s BitMorpho Daily News & Fundamentals Report for Monday, December 8, 2025. The digital asset space kicks off the week with a distinct focus on institutional flows and the simmering macro-economic tension bubbling beneath the surface, all of which is currently impacting XRP’s consolidation phase. XRP Fundamentals in Focus: For Ripple’s native asset, the story remains one of institutional absorption defying retail sentiment. U.S.-listed XRP spot ETFs have logged an impressive 15 consecutive days of net inflows, accumulating roughly 861 million in capital and absorbing nearly 1% of the circulating supply as of last week. This steady, rule-based buying, often executed via OTC channels, underscores strong structural demand, suggesting major financial desks are positioning for regulated use cases following the final resolution of the SEC lawsuit. On-chain metrics echo this underlying strength: while the November euphoria of a 400% spike in payment volume has cooled, the network is still processing historically robust daily traffic. However, XRP price action remains constrained, currently fighting to break the critical 2.10-$2.12 resistance cluster as it trades within a long-running declining channel. Global Market Headwinds: The broader market environment is dominated by macroeconomic uncertainty. This week is pivotal for the Federal Reserve, with a divided Fed facing its most contentious meeting. Market expectations are mixed, as bond traders appear to be defying the Fed's stance, while core inflation data has slightly boosted the odds of a rate cut. Furthermore, the lingering shadow of global trade wars persists, with markets monitoring the fallout from recent US tariff discussions and their impact on international trade, particularly with China. This macro backdrop is likely contributing to the cautious approach seen in the spot price, making that key technical breakout for XRP more dependent on significant volume confirmation in the days ahead. Stay tuned as we track any policy shifts that could move this market. News Analysis XRP Report: Consolidation Holds as Institutional Demand Keeps Floor Firm The XRP market enters the trading week defined by a fascinating dichotomy: muted price action around the $2.00 psychological level against a backdrop of relentless institutional accumulation and significant positive ecosystem developments. While the broader market continues to digest global macroeconomic signals, XRP’s narrative is increasingly tied to its utility build-out and the structural changes driven by U.S. spot ETFs. Institutional Footprint: ETFs and Supply Shock Intensify The most concrete bullish signal for XRP remains the sustained demand from U.S. spot Exchange-Traded Funds (ETFs). Data confirms a relentless wave of inflows, with cumulative Assets Under Management (AUM) nearing the $1 billion mark, suggesting significant capital migration into regulated products. This institutional buying has resulted in a tangible supply reduction, as analysts note that hundreds of millions of XRP have been actively locked away in regulated vaults, effectively pulling significant circulating supply out of active markets. This accumulation phase is mirroring historical patterns seen with other major assets, where large-scale custodial buying precedes significant price appreciation. Institutional buying, often executed through Over-The-Counter (OTC) channels, has been noted to remove upward pressure from spot exchanges, allowing for capital inflow without immediate price disruption. This behavior suggests a long-term, infrastructure-focused investment thesis rather than speculative trading, positioning XRP as a critical settlement asset. On-Chain Activity: Velocity Surges Amidst Whale Reallocation On-chain metrics paint a picture of high network engagement, even as the daily trading volume has cooled from November’s euphoria. The XRP Ledger (XRPL) recently recorded a new 2025 high in network velocity, indicating that XRP is changing hands at a rapid pace, reflecting substantial trader and whale involvement. However, this high activity is accompanied by a shift in large holder concentration. While the total count of wallets holding over 100 million XRP has shrunk by over 20% in recent weeks suggesting some early large holders may have offloaded the remaining wallets in that cohort now control a seven-year high in total XRP holdings. Concurrently, a distinct group of smaller whale wallets (holding 1-10 million tokens) has been observed distributing assets. This suggests a classic reallocation trend: larger, more strategic entities are consolidating control, while smaller entities may be rotating capital, potentially contributing to the selling pressure seen last week. Ecosystem Growth: RLUSD Utility and Regulatory Milestones Ripple’s strategic utility expansion continues to build a foundation for future demand. The company’s dollar-pegged stablecoin, RLUSD, which launched last year, is gaining traction, with its adoption seen as a catalyst that could create secondary demand for XRP as a bridge asset for on-chain settlements within Ripple’s ecosystem. This two-track system XRP for liquidity/settlement and RLUSD for payments is gaining strategic importance as institutions look for regulated, efficient cross-border tools. Furthermore, regulatory progress in key jurisdictions provides ongoing tailwinds. Ripple recently secured an expanded Major Payment Institution license from Singapore’s Monetary Authority (MAS), allowing the company to scale regulated blockchain payment services, including those leveraging RLUSD and XRP, across the region. This move solidifies Ripple’s position in a key Asian financial hub and removes further regulatory friction for potential institutional partners looking to adopt its technology. This infrastructure build-out is part of a larger strategy that has seen Ripple invest heavily in traditional finance firms throughout the year to bridge the gap with Wall Street. Price Outlook: Waiting for Conviction Above Resistance Technically, XRP remains pinned around the crucial 2.00 support level, struggling to maintain momentum to break through near-term resistance, which analysts place around the 2.10–$2.20 zone. While some indicators have flashed short-term buy signals near support, confirmation requires a convincing breakout on volume. The current price consolidation, underpinned by institutional accumulation and utility growth, suggests the market is digesting strong foundational developments while waiting for a macro catalyst or a decisive technical break to unlock the next leg higher. Investors will be keenly watching for any confirmed move above multi-week resistance to signal the end of this sideways accumulation phase. Outlook Conclusion: Institutional Accumulation vs. Price Stagnation Sets the Stage The current XRP landscape presents a compelling case study in fundamental strength outpacing near-term price performance. The overall fundamental outlook remains decidedly positive, underpinned by the relentless institutional demand evidenced by rapidly growing U.S. spot ETF AUM, which nears the 1 billion threshold. This sustained capital inflow is creating a quantifiable supply shock as vast amounts of XRP are locked into regulated vaults, setting a firm floor around the 2.00 level despite current consolidation. Furthermore, surging on-chain velocity signals that the underlying utility and transactional nature of the XRP Ledger remain highly active, suggesting that while speculators might be pausing, infrastructure users are engaged. For the next 24-48 hours, investors should closely monitor two key indicators: firstly, the daily net inflow/outflow data from the spot ETFs to gauge the continuation of the institutional buy-side pressure, and secondly, the ability of the price to decisively break and hold above the $2.00 psychological ceiling. A sustained breakout, fueled by this underlying accumulation, could trigger significant upside momentum. Should the price falter, however, the tight consolidation pattern suggests a high-conviction battle between long-term holders and short-term traders is underway. *Disclaimer: This report is for informational purposes only and does not constitute financial advice. Always conduct your own due diligence before making investment decisions.*