XRP News Today: XRP's Surge Tied to Powell's Pivotal Shift on Rates

The recent comments from U.S. Federal Reserve Chair Jerome Powell have triggered a significant market response, particularly within the XRP (XRP) community. Powell's remarks, delivered during the Jackson Hole Economic Symposium, suggested a potential September rate cut, which alleviated bearish market sentiment and led to a 3% price increase for XRP. The move came amid a broader relief rally in the cryptocurrency sector, with Bitcoin surging alongside traditional financial assets. This development follows a week of heightened volatility, with XRP facing a sharp selloff and resistance at the $2.92 level prior to Powell’s speech [2]. The Federal Reserve’s stance appears to have shifted the odds of a rate cut back toward nearly 90%, reversing a week of hawkish expectations that had driven crypto markets lower [4].

XRP’s price action reflects the interplay between macroeconomic expectations and institutional dynamics. Over the past 24 hours, investors locked in more than $300 million in profits, triggered by the Federal Open Market Committee (FOMC) minutes that indicated growing concerns about inflation. This profit-taking activity, combined with elevated exchange inflows of $76.8 million, suggests increased selling pressure in the spot market [3]. On-chain data also shows that XRP’s network saw significant realized losses, with most of its supply currently in profit. However, the futures market remains relatively stable, with open interest declining only slightly, signaling that the current price correction is not entirely driven by leveraged positions [3].

The XRP blockchain is also undergoing structural developments that could enhance its utility and market appeal. Ripple, the company behind XRP, has launched its own stablecoin, Ripple USD (RLUSD), which is fully backed by cash and regulated under New York’s stringent financial standards. This initiative aligns with the broader push for stablecoin innovation, particularly in the wake of the U.S. passing the Genius Act, which provides a regulatory framework for stablecoins and encourages institutional participation. Ripple’s partnership with Circle, the issuer of USDC, to integrate the stablecoin on the XRP Ledger (XRPL) could further expand liquidity and attract developers, potentially boosting the blockchain’s utility [1].

Regulatory clarity has been a key driver of XRP’s institutional adoption. The U.S. Securities and Exchange Commission (SEC) reclassified XRP as a commodity in 2025, resolving a long-standing legal dispute and removing barriers to institutional investment. This development has allowed XRP to be traded in regulated markets like CME-listed futures, offering a more transparent and stable environment for institutional players. The regulatory shift has also led to increased interest in XRP-based financial instruments, including MiFID II-compliant perpetual futures in the EU, which provide hedging and investment opportunities for European investors [6].

XRP’s role in cross-border payments and financial infrastructure has been a central focus for both institutional and enterprise users. The XRP Ledger’s speed and low cost—settlements occur in seconds with fees below $0.01—make it an attractive alternative to traditional systems like SWIFT. This has led to growing interest from small and medium-sized enterprises (SMEs) in Europe, who are exploring XRP-based payment frameworks to reduce transaction delays and forex risks. Ripple’s On-Demand Liquidity (ODL) service, combined with XRP’s regulatory alignment, offers a compliant and efficient solution for international transactions, particularly as global financial systems evolve [6].

Looking ahead, XRP’s price trajectory will likely remain tied to broader macroeconomic trends and regulatory developments. With the SEC considering XRP ETF approvals and global regulatory frameworks evolving, the asset’s institutional profile is set to grow. Meanwhile, Ripple’s strategic moves into stablecoins and cross-border payments could further diversify XRP’s use cases and reinforce its position in the crypto ecosystem. As the Fed continues to shape the economic landscape, XRP investors will be watching for further policy signals that could influence market sentiment and liquidity dynamics [2][3][4].

Source:

[1] Ripple (XRP) and Stablecoins: 4 Things Investors Need to Know (https://finance.yahoo.com/news/ripple-xrp-stablecoins-4-things-110000919.html)

[2] XRP Zooms 3% as Bitcoin Spikes on Powell Comments (https://www.coindesk.com/markets/2025/08/22/xrp-zooms-3-as-bitcoin-spikes-on-powell-comments)

[3] XRP Price Forecast: Investors lock in $300M profit with Fed (https://www.fxstreet.com/cryptocurrencies/news/ripple-price-forecast-xrp-slips-as-investors-lock-in-300m-profit-ahead-of-fed-chair-powells-speech-202508220100)

[4] Bitcoin Price (BTC) News: Higher on Powell Jackson Hole (https://www.coindesk.com/markets/2025/08/21/powell-puts-september-rate-cut-in-play-bitcoin-pushes-higher)

[5] U.S. Stablecoin Law Jolts EU Into Rethinking Digital Euro Strategy (https://www.coindesk.com/policy/2025/08/22/u-s-stablecoin-law-jolts-eu-into-rethinking-digital-euro-strategy-ft)

[6] What is the Regulatory Edge of XRP in the Crypto Market (https://www.onesafe.io/blog/xrp-regulatory-advantage-future-cryptocurrency)