Morning Crypto Report: XRP Surges 324% in Weekly ETF Inflows; Strategy CEO Discusses Potential Bitcoin and Shiba Inu (SHIB) Sales in December

As December begins, Bitcoin faces a notable slide, dropping over $5,000 to around $86,000. Conversely, XRP has seen an unprecedented surge in ETF inflows, totaling $289 million in just five days. Meanwhile, Shiba Inu (SHIB) struggles to maintain stability near $0.000008, with critical price levels that could lead to significant shifts. The CEO of Strategy elaborates on potential Bitcoin sales, emphasizing that they may only need to sell if certain financial metrics deteriorate.

Key Takeaways

XRP has recorded its largest ETF inflow with $289 million in a single week, marking a 324% increase.
Bitcoin's price has dropped sharply, currently around $86,000, impacting market sentiment.
Shiba Inu (SHIB) is trading near $0.000008, with a critical support level at $0.0000072.
The CEO of Strategy outlines specific conditions under which Bitcoin may be sold, linking it to the company's financial health.

As December starts, Bitcoin is experiencing one of the most significant monthly transfers it has seen in weeks, with a sharp decline over $5,000 bringing it down to around $86,000. While Bitcoin’s price falters, XRP impressively showcases the largest ETF inflow ever, attracting $289 million in just five days, during a time when many cryptocurrencies are facing losses.

On the other hand, Shiba Inu (SHIB) enters December struggling, with its price stagnating near $0.000008. The market structure is fragile, meaning each small move above or below this level carries significant weight. A recovery could open the door for its first real genuine upward movement in months, but if the price slips below $0.0000072, it could fall into its weakest price zone within the yearly profile.

December opens with XRP witnessing substantial ETF inflows. According to CoinShares, XRP products enticed $289.2 million in the last week alone, an increase of over $200 million from the previous week, resulting in a staggering 324% rise — the most inflows the asset has ever experienced. Overall crypto ETP inflows reached $1.072 billion, with XRP making up approximately 27-30% of that figure as the month begins.

Analyst Butterfill highlights that this surge over the last six weeks now accounts for 29% of all XRP ETP assets under management (AuM), confirming XRP as a central flow driver propelling activity as December kicks off.

Source: CoinShares

Despite the substantial inflows, XRP’s price has not reacted positively; it has fallen from $2.20 to $2.03, following Bitcoin's decline. This creates a unique situation where heavy ETF demand coincides with a correcting spot price.

During December, Phong Le, the CEO of Strategy, revealed key insights about when the company might consider selling Bitcoin. According to Le, the company would only sell if the modified net asset value (mNAV) drops below 1 and if access to capital becomes unavailable. The mNAV measures the amount of BTC per share after accounting for debt, and the company has allowed this figure to reduce without taking action.

In 2022, for instance, mNAV hit 0.54 with far lower leverage, yet the company did not sell its Bitcoin at that time. Presently, the figures report at 0.905 basic, 1.009 diluted, and 1.169 EV-adjusted, providing Strategy with leeway before needing to sell.

Phong clarified the reasoning behind their strategy: selling Bitcoin would only be a measure taken for liquidity to cover up to $750 million in annual preferred dividends. If their stock trades at 2x mNAV, raising $1 billion would involve approximately $500 million in dilution, counter-balanced by $500 million in Bitcoin gains.

The recent green-dot post by Saylor sparked additional speculation. Historically, yellow dots signify Bitcoin purchases, suggesting that green dots could indicate financing supported by Bitcoin, asset reallocation, or a potential buyback signal if premiums drop. Additionally, some of Strategy's Bitcoin was transferred between custodians last week, indicating a likely collateral reshuffle, coinciding with Bitcoin’s price decrease from $91,000 to $86,000, making every detail a pivotal market signal.

Shiba Inu (SHIB) started December priced around $0.00000800, below its October support level and dropping into the $0.0000072-$0.0000075 range, levels not seen since mid-year. If SHIB continues to follow its typically weaker trend during December with low trading volumes, a drop below $0.0000072 could lead to a decline towards $0.0000060-$0.0000065, aligning with a projected 32.3% seasonal drop in Q4 2025, adding to Q1's 41% and Q2's 7.8% losses.

SHIB/USD Chart by TradingView
SHIB/USD by TradingView

For a positive reversal, overall market stability is essential: a recovery back to the $0.0000105-$0.0000118 range would bring SHIB back to areas lost in October, mirroring a 41% rebound seen in Q4 2023. This potentially requires increased activity from Shibarium or improved Bitcoin market conditions.

Throughout the past year, price movements have shown lower highs, and SHIB will only break this trend if it revisits the $0.000010-$0.000011 line, marking the end of a 14-month downtrend.

December opens with a market split: Bitcoin rests in a precarious position, where one clear move could either pull it toward the low-$80,000 range or redirect the entire market into a relief phase. Both XRP and SHIB are held in critical positions, where even a slight Bitcoin movement could determine whether they gain traction or slide into further weakness.

Key levels to monitor:

Morning Crypto Report: XRP Surges 324% in Weekly ETF Inflows; Strategy CEO Discusses Potential Bitcoin and Shiba Inu (SHIB) Sales in December