XRP's $25K Bribery Scandal: A Liquidity Test in the Shadow of ETF Flows

The bribery scandal is a minor liquidity event against the massive, institutional ETF flow, but it highlights the token's vulnerability to narrative-driven volatility.

A $25,000 offer to defame XRP critics surfaced recently, a minor liquidity event that underscores the token's vulnerability to narrative-driven volatility. This incident occurs against a backdrop of significant regulatory clarity. The SEC dropped its appeal in March 2025, effectively ending its five-year litigation against Ripple Labs. This decision, which followed a July 2023 ruling that XRP is not a security on public exchanges, created the necessary legal foundation for a new demand channel.

That channel is now operational. The enabling of U.S. spot XRP ETFs in late 2025 has attracted substantial institutional capital, with the funds drawing $1.37 billion in cumulative net inflows by mid-January 2026. This institutional demand represents a fundamental shift, providing a powerful counterweight to the kind of speculative noise exemplified by the bribery offer. The scandal is a liquidity test, but the ETF flow is the dominant trend.

ETF Inflows: The $1.37B Institutional Bid

The dominant force in XRP's recent price action is a massive, institutional bid. By mid-January 2026, U.S. spot XRP ETFs had attracted $1.37 billion in cumulative net inflows. This represents a fundamental shift, creating a powerful new source of bid-side liquidity that dwarfs the $25,000 scandal's financial impact by a factor of over 50 times.

The key metric for sustained price support is not influencer narratives, but the pace of these inflows. The initial surge provided a strong floor, but the market is now focused on whether this institutional demand can continue. Recent data shows momentum cooling, with ETFs seeing significant outflows in January, including a single-day outflow of $93 million. This volatility in the flow itself is the primary driver of price swings.

The bottom line is that the $1.37 billion figure is the headline number, but the trajectory of that capital is the real story. For the bullish thesis to hold, ETF inflows need to stabilize or accelerate. Any sustained outflow would directly pressure the price, making the flow data the most critical indicator for XRP's near-term path.

Price Action and Flow Sensitivity

The token's price has swung sharply, reflecting its sensitivity to the interplay between institutional flows and speculative sentiment. Earlier this month, XRP surged 24% in a single day, pushing the price to around $1.57. That move came after a period of cooling momentum, as the asset had already declined sharply from an early January high near $2.40.

This volatility highlights the market's direct dependence on the flow of ETF capital. The recent 24% pop was likely fueled by renewed hopes for institutional demand, but the subsequent pullback shows how quickly sentiment can shift. With ETFs seeing significant outflows in January, including a single-day outflow of $93 million, the price is now caught between fading speculative momentum and the uncertain trajectory of institutional inflows.

The bottom line is that minor scandals are easily overshadowed by this primary driver. The market is pricing in the flow data, not the noise. For XRP, the path forward hinges on whether ETF inflows can stabilize or accelerate. Any sustained outflow would directly pressure the price, making the flow of capital the most critical indicator for its near-term path.