While Bitcoin (BTC) surged to a new all-time high above $111,000 on Thursday, XRP failed to keep pace, remaining stuck below its $2.50 resistance level. The divergence highlights not only the growing confidence in Bitcoin’s institutional support but also the persistent legal uncertainty clouding Ripple’s outlook.
Bitcoin’s latest rally was fueled by renewed optimism over the potential passage of the Bitcoin Act in Congress. The catalyst came from Texas, where lawmakers approved Senate Bill 21 formally titled the Texas Strategic Bitcoin Reserve and Investment Act — on May 21. If signed into law by Governor Greg Abbott, the bill would authorize the creation of a state treasury fund specifically for investing in cryptocurrencies, including Bitcoin.
This institutional embrace of BTC has been widely seen as a validation of Bitcoin’s growing role in public finance. With state-level initiatives gaining traction, the likelihood of federal legislative support for crypto has increased, helping to drive Bitcoin’s price momentum further.
In contrast, Ripple continues to battle regulatory uncertainty. The SEC recently sought to impose stricter penalties in its case against the company, including a reduction in the originally proposed $125 million fine and a ban on XRP sales to institutional investors. However, Judge Analisa Torres rejected the SEC’s request, citing procedural noncompliance under Rule 60.
This legal stalemate has further delayed clarity for XRP investors and raised questions about the timeline for any institutional expansion via ETFs or large-scale investment products.
The SEC’s indecision extends beyond Ripple. Reviews of major XRP-related ETF proposals, including Grayscale’s XRP Trust and Franklin’s XRP Fund, have been postponed again. The delay underscores the broader uncertainty surrounding altcoin-based investment vehicles in contrast to Bitcoin, which has seen over $7.4 billion in ETF inflows over the past five weeks alone.
Despite XRP’s sluggish price performance, technical indicators may suggest a potential shift. On the weekly chart, a Golden Cross pattern has formed in the XRP/BTC pair — a signal that historically precedes stronger relative performance from XRP.
This bullish crossover occurs when the 50-week moving average crosses above the 200-week average, often considered a sign of long-term trend reversal. Past Golden Cross formations have marked the start of significant upward moves in XRP relative to Bitcoin.
Supporting the bullish narrative is surging activity within the XRP Ledger ecosystem. According to blockchain analytics platform Messari, active addresses on the network rose by 142% this quarter, while RLUSD, a stablecoin native to the ledger, saw a 304% increase in market capitalization. These figures suggest a resurgence in network utility that could fuel renewed investor interest if regulatory clarity improves.
As of 12:00 PM UTC on May 22, XRP was trading at $2.42, essentially flat for the day. Bitcoin, meanwhile, posted a 4.2% gain in 24 hours, with prices reaching $111,544, fueled by bullish ETF flows and growing institutional conviction.
The divergence between BTC and XRP is emblematic of the current crypto cycle, where regulatory clarity — or the lack thereof — plays a defining role in market performance. While Bitcoin benefits from growing legitimacy via state legislation and ETF adoption, XRP remains entangled in a drawn-out legal battle that tempers its upside potential.
Whether XRP can catch up with Bitcoin may depend on multiple catalysts aligning — a favorable court outcome, ETF approval, or further adoption of the XRP Ledger by institutions. Until then, Bitcoin’s dominance continues to rise, powered by legislative wins and investor confidence.
Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.
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