In the midst of overwhelmingly negative market sentiment surrounding Bitcoin (BTC), Ethereum (ETH), and most cryptocurrencies, XRP stands out as the only coin experiencing a sudden shift towards bullish investor behavior. Despite dropping below $1.4 this week, recent reports indicate a positive shift in XRP’s market sentiment, signaling a change in investor confidence amidst the broader market downturn.
XRP’s Positive Sentiment Amid Bitcoin and Ethereum Struggles
Bitcoin and Ethereum are currently facing significant bearish pressure, with negative market sentiment persisting around the two largest cryptocurrencies. In contrast, sentiment surrounding XRP has surprisingly turned positive.
Data from crypto analytics platform Santiment as of January 7, 2026, shows a decrease in negative sentiment for Bitcoin to 1.39 and for Ethereum to 1.73, reflecting a growing sense of fear and uncertainty among investors during the broader crypto market decline. Santiment’s data illustrates a consistent deterioration in market sentiment towards Bitcoin and Ethereum since the beginning of the year.
While Ethereum’s sentiment briefly rose to 2.12 in early January during price recovery attempts, it quickly reversed as the cryptocurrency continued to decline. Bitcoin has shown minimal improvement in market sentiment, remaining firmly in negative territory since the start of January. The recent drop below $70,000 for Bitcoin has exacerbated bearish readings, raising concerns of a potential full-scale bear market with expected near-term downside pressure.
The significant decline in sentiment for Bitcoin and Ethereum underscores XRP’s unique bullish position in the market. Despite its price falling below $1.3, XRP has managed to regain positive investor sentiment and confidence.
Santiment data reveals that XRP’s market sentiment surged to 4.07 on January 7, up from 1.39 the previous day. Throughout January, the cryptocurrency’s sentiment had remained below 2, indicating cautiousness and uncertainty among investors prior to the recent unexpected shift.
Factors Influencing Positive Sentiment
The rise in positive sentiment towards XRP is primarily attributed to the increasing institutional demand for the cryptocurrency’s Exchange-Traded Fund (ETF). While Spot Bitcoin and Ethereum ETFs are experiencing outflows, XRP ETFs are witnessing gains.
SoSoValue data shows that Spot Bitcoin ETFs have experienced only two days of positive inflows since January 16, with a recent daily outflow of $434.15 million on February 5. Ethereum ETFs have faced similar outflows, recording positive inflows on only three occasions since January 20. The largest outflow for Ethereum occurred on January 21, with approximately $297.51 million leaving the asset. In contrast, XRP Spot ETFs have outperformed, with only four days of outflows since January, indicating growing confidence and institutional interest in the cryptocurrency.
Featured image created with Dall.E, chart from Tradingview.com
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