XRP News Today: Investors Bet Fed Rate Cut Will Fuel Crypto Risk-On Rally

Federal Reserve rate-cut expectations for September 2025 have intensified, with market sentiment and key industry figures signaling a high probability of a cut. According to the CME FedWatch tool, the probability of a rate reduction at the Federal Reserve’s September 17 meeting stands at 91.7% following remarks from Fed Chair Jerome Powell at the Jackson Hole symposium on August 22. Crypto.com CEO Kris Marszalek has expressed confidence that a rate cut will boost the crypto market, citing the potential for increased liquidity and reduced borrowing costs, which historically have benefited riskier asset classes like digital assets. He noted that similar cuts in late 2024 led to a 57% gain in crypto markets over four months [1].

The impact of a rate cut on specific cryptocurrencies like XRP could be nuanced. Lower interest rates typically enhance risk appetites, making high-risk, high-return assets more appealing to investors. This shift can lead to an increase in demand for cryptocurrencies such as XRP, which is considered a growth asset. Additionally, as borrowing costs decrease, the bar to beat for holding volatile assets is lowered, encouraging further capital flow into the sector. However, this does not guarantee sustained growth, as market dynamics and broader economic conditions will also play a role [2].

Investors are also weighing the broader implications of a Fed rate cut on the overall financial landscape. Lower rates can reduce yields on safe assets like U.S. Treasuries, potentially diverting capital into nonincome investments such as cryptocurrencies. The opportunity cost of holding traditional fixed-income assets diminishes, making speculative investments more attractive. In the context of the cryptocurrency market, this environment could encourage further institutional adoption and expansion of crypto-related infrastructure, indirectly benefiting major players like Bitcoin and XRP [4].

At the same time, the regulatory landscape for stablecoins is evolving. The U.S. enacted the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, marking a step toward formalizing oversight for stablecoins. This move contrasts with the European Union’s Markets in Crypto-Assets (MiCA) Regulation, which has been in place since late 2024. These differing approaches could influence the global stablecoin market and investor strategies, particularly as they relate to cross-border transactions and compliance. However, stablecoins remain a small segment of the overall crypto market, representing less than 1% of global money transactions [3].

Looking ahead, the interplay between monetary policy and the crypto market will remain a key focus for investors and industry leaders. Marszalek has also hinted at Crypto.com's interest in prediction markets, a segment that could gain traction if regulatory hurdles are overcome. Additionally, the firm’s recent partnership with Trump Media and Technology Group and its plans for a potential initial public offering highlight the broader strategic moves in the crypto sector. While no decision has been made on an IPO, the company is preparing extensively for any potential listing, emphasizing its long-term ambitions [1].

Source: [1] Crypto.com CEO Predicts Strong Q4 On Fed Rate Cut Hopes (https://cointelegraph.com/news/crypto-com-ceo-bets-fed-rate-cut-fuel-crypto-markets-in-q4) [2] Here's Why a Fed Rate Cut Could be Great News for XRP (https://finance.yahoo.com/news/heres-why-fed-rate-cut-094500210.html) [3] Crypto Rules in Europe vs. the US: Does Your Stablecoin ... (https://www.nasdaq.com/articles/crypto-rules-europe-vs-us-does-your-stablecoin-strategy-need-change) [4] Could an Interest Rate Cut from the Fed Help or Hurt Bitcoin? (https://finance.yahoo.com/news/could-interest-rate-cut-fed-103300007.html)