XRP News Today: Crypto Volatility Rises as Fed Holds Rates and Tariffs Heighten Risk Aversion

The cryptocurrency market is experiencing heightened volatility as U.S. tariff measures and the Federal Reserve's decision to maintain its current interest rate policy converge to create an uncertain macroeconomic environment [1]. The Fed’s recent decision to keep rates within the 4.25–4.50% range has reinforced a “higher-for-longer” stance, shifting capital away from high-risk assets such as crypto and toward safer investments [2]. This has compressed liquidity, intensified selling pressure, and triggered increased liquidations across the market [3].

Jerome Powell, Chair of the U.S. Federal Reserve, has emphasized ongoing economic uncertainties, noting that inflationary pressures remain a concern. His comments have been interpreted as a signal of prolonged tight monetary policy, intensifying caution among investors and traders [1]. While some analysts are recalibrating their expectations for a potential rate cut at the September meeting, the lack of immediate policy easing continues to weigh on the crypto space [6].

The imposition of new tariffs, including a 35% levy on Canadian imports and a 10% global tariff, has further complicated the macroeconomic landscape. These measures have heightened inflation concerns and created a more risk-averse trading environment, particularly for altcoins like XRP [2]. On-chain data shows a large portion of XRP holders are currently in profit, increasing the likelihood of profit-taking amid the instability [4].

Bitcoin has seen a short-term rebound above $118,000 in the wake of the Fed’s rate pause, but broader market stability remains elusive [3]. Central bank signals and geopolitical developments have led to erratic trading behavior, with leveraged positions and large-scale liquidations exacerbating price swings. Analysts warn that without a clear regulatory breakthrough or a reversal in monetary policy, digital assets are likely to remain under pressure in the near term [7].

Regulatory uncertainty, particularly surrounding potential ETF approvals and ongoing legal disputes involving Ripple, has further contributed to the volatile environment. The delayed SEC appeal decision and unclear regulatory timelines have dampened investor enthusiasm, reinforcing a cautious stance [2]. Additionally, whale activity and reports of large-scale offloading have intensified fears, making XRP one of the most volatile assets this week [4].

As the market continues to absorb these developments, the interplay between Fed policy, trade tensions, and investor sentiment will remain central to shaping the crypto landscape. With no immediate relief on the horizon and geopolitical risks persisting, volatility is expected to continue in the near term [2].

Source:

[1] https://dexalot.com/en/blog/powells-hawkish-statement-crypto-market-reaction

[2] https://timestabloid.com/major-reasons-why-xrp-is-down-today/

[3] https://www.ainvest.com/news/bitcoin-news-today-bitcoin-surges-0-74-118k-fed-pauses-cuts-litecoin-remittix-attract-bullish-attention-2508/

[4] https://cointelegraph.com/news/3-price-at-risk-why-xrp-was-one-of-the-worst-peformers-this-week

[6] https://www.wsj.com/livecoverage/jobs-report-today-stock-market-08-01-2025?gaa_at=eafs&gaa_n=ASWzDAibwbpdbcnTZb3QjMWDHu_aJOAZucAH2T-ViBytMasR5_SwmI77YUBE&gaa_sig=iY9_P4jn1ii6gICgJkAF9CtFpL4bQrfjfU_YLSw3PrylrTL7w-RgVQlOQUKHNatAS9rGDwdv86hKJ1trEpyejw%3D%3D&gaa_ts=688df1be

[7] https://www.fxempire.com/forecasts/article/xrp-news-today-legal-clouds-etf-bets-stir-volatility-in-xrp-price-forecast-btc-below-115k-1537951