XRP News Today: XRP Plummets 8% Amid Fed Caution, Tariffs, and Legal Uncertainty

Late July 2025 saw a sharp downturn in the cryptocurrency market, driven by macroeconomic concerns and shifting investor sentiment. The selloff was most pronounced for XRP, which dipped below $3, marking an over 8% drop within a single day [1]. The broader crypto market also faced headwinds, with the global market cap declining by 2.4% to $3.78 trillion in early July [2]. Bitcoin, meanwhile, fell below $118,500 as uncertainty over U.S. Federal Reserve policy and global trade tensions heightened fears of inflation and economic instability [4].

The Fed’s decision to hold interest rates amid rising economic pressures played a key role in the market’s deterioration. Investors, particularly those using leverage, began shifting capital to safer assets, intensifying the downward pressure on crypto markets [2]. Additionally, newly imposed U.S. tariffs—including a 35% levy on Canadian imports and a 10% global tariff—sparked concerns over inflation and disrupted global supply chains, further eroding investor confidence [2].

On-chain data revealed that nearly all of XRP’s circulating supply was in profit, increasing the likelihood of large-scale profit-taking during times of volatility. Whale activity and large holders offloading their positions worsened the sell-off [3]. The ongoing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) also contributed to the token’s underperformance, casting doubt on its regulatory future and discouraging institutional participation [6].

The technical outlook for XRP appeared bearish, with the token nearing a critical support level of $3. Futures volume was declining, and reduced demand suggested further downward pressure in the near term [9]. Analysts indicated that without a policy shift or regulatory resolution, XRP could continue facing downward momentum.

The sell-off extended beyond XRP. The broader altcoin market followed U.S. small-cap stock trends, experiencing a synchronized downturn amid similar macroeconomic concerns [5]. HBAR also fell sharply, dropping 17% as long liquidations surged, highlighting growing bearish sentiment [10].

Equity markets were not untouched. The Dow Jones fell 0.19% as trade-related fears overshadowed strong earnings from the tech sector [7], while the Nasdaq reached a record high, underscoring the market’s mixed response to the same economic backdrop.

The interconnectedness of global financial and crypto markets was on full display as macroeconomic signals triggered widespread volatility. With regulatory uncertainty persisting and policy clarity remaining elusive, the near-term outlook for crypto remains cautious. Until key legal issues are resolved or a policy shift occurs, the downward trajectory is likely to continue [2][6].

Source:

[1] https://m.economictimes.com/news/international/us/crypto-darling-xrp-under-pressure-price-dips-below-3-whats-causing-the-drop-is-a-massive-selloff-coming/articleshow/123042471.cms

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

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

[4] https://www.mitrade.com/insights/news/live-news/article-3-999056-20250731

[5] https://beincrypto.com/altcoins-us-small-cap-stocks-correlation/

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

[7] https://m.economictimes.com/crypto-news-today-live-31-jul-2025/liveblog/123004697.cms

[9] https://beincrypto.com/xrp-price-holds-steady-but-activity-falls/

[10] https://beincrypto.com/hbar-price-falls-long-liquidations-dominate/