1 Billion XRP Withdrawn from Exchanges in Three Weeks Amid U.S. ETF Inflows
Glassnode data shows roughly 1 billion XRP was withdrawn from centralized exchanges over three weeks, reducing exchange balances from about 3.5 billion in early November to ~1.5 billion by late November. Market analyst Mighty Mike and community members noted the rapid outflows coincided with the launch and heavy inflows into U.S. spot XRP ETFs (about $944 million net inflows across four managers per SoSoValue). Analysts interpret transfers to private wallets as long-term accumulation by large holders, driven by ETF demand, institutional and sovereign allocations, OTC and dark-pool activity, token burn mechanics, and growing retail FOMO. Observers also highlighted an unusual supply-price inversion where exchange reserves fell below XRP’s one‑year price trendline, suggesting supply is tightening faster than price. Traders are watching for a potential supply shock that could limit liquidity on exchanges and influence short- to mid-term price action. Disclaimer: not financial advice.
Bullish
Large, rapid withdrawals of roughly 1 billion XRP from exchanges reduce on-exchange liquidity, which historically can exert upward pressure on price when demand remains strong. The outflows coincided with nearly $944 million in net inflows into U.S. spot XRP ETFs, indicating sustained institutional and ETF-driven demand. Transfers into private wallets imply accumulation rather than trading, reducing available float and raising the risk of a supply squeeze. The noted inversion where exchange reserves fell below the one‑year price trendline reinforces that supply is tightening faster than price, a condition that often precedes rally phases if buying continues. Short-term effects: increased volatility and potential sharp rallies on low-liquidity order books, especially if ETF demand persists or large holders continue hoarding. Mid- to long-term effects: if institutional adoption and real-world use keep growing while circulating supply declines, fundamentals could strengthen, supporting higher price levels. Risks: rapid price spikes can attract profit-taking and short-term corrections; liquidity drying on major venues could exacerbate price moves and slippage for large orders. Comparable past events: Bitcoin and other altcoins have seen price appreciations following significant exchange outflows tied to institutional accumulation (e.g., BTC ETF flows in 2023). Overall, given sustained demand signals and materially reduced exchange reserves, the net impact is assessed as bullish but with elevated volatility and liquidity risk.