XRP saw renewed interest as Ripple’s XRP Ledger (XRPL) technology enters mainstream headlines just as broader crypto markets, including Bitcoin and Ether, surged on signs of a potential Federal Reserve rate cut. This market shift, driven by comments from Fed Chair Jerome Powell, led to over $375 million in crypto liquidations, underlining the volatility and opportunity within financial markets powered by blockchain assets.

Fed Comments Ignite Crypto Rally

Federal Reserve Chairman Jerome Powell provided clues at the Jackson Hole symposium suggesting that future rate cuts may be imminent. He noted, “the downside risks to employment are rising,” highlighting that any economic shifts could escalate unemployment quickly — a possible catalyst for upcoming policy changes.

Markets responded sharply. Bitcoin (BTC) rebounded off a key support level at $111,800, gaining 2.6% to reach $114,800. This upward momentum came after a brief pullback and a one-week decline from a recent high of $124,500. Similarly, Ether (ETH) surged from $4,200 to $4,650, a dramatic 10% rise within just four hours.

Massive Liquidations Rattle Futures Traders

According to data from CoinGlass, over $375 million in crypto derivatives positions were wiped out. The majority of the losses hit traders holding short positions who were betting on further market decline. Ether positions were especially affected, with $150 million in liquidations during Ether’s rapid climb.

Ether (ETH) notched a 10% gain, triggering massive short liquidations as traders scrambled to adjust their positions.

This cascade of liquidations cleared out significant derivatives volume, yet open interest — a measurement of unsettled futures contracts — actually increased. As reported by Coinalyze, this rise in open interest over the past four days implies new leverage-backed positions are entering the market, adding to ongoing volatility.

XRP and XRPL Gaining Momentum

While the digital spotlight shone on BTC and ETH, XRP and Ripple’s XRPL ecosystem also benefited as investors looked for scalable, institution-friendly blockchain alternatives. With the XRPL consistently proving useful for cross-border payments and tokenized asset support, it’s seen as a beneficiary of macroeconomic uncertainty driving renewed crypto exploration.

Related projects such as Lido (LDO) and Ethena (ENA) have also surged, driven in part by recent SEC clarifications on staking mechanisms. This regulatory clarity further bolsters blockchain ecosystems enabling yield generation and liquidity, categories where XRP Ledger integrations are also progressing.

Rate Cut Speculation May Favor Risk Assets Like XRP

Historically, rate cuts lower the cost of borrowing and tend to stimulate investment in risk-on assets like cryptocurrencies. Powell’s suggestion that labor market instability may prompt action as early as next month has broadened optimism across digital asset communities. For XRP, which often plays a complementary role in broader crypto cycles, such macro conditions may well fuel short-term growth and long-term adoption.

Related: XRP Price: $12M Max Pain for Bears

The crypto market remains highly responsive to macroeconomic cues. With leveraged positions once again growing and large-scale liquidations clearing bearish momentum, the stage is set for more unpredictable — but potentially lucrative — moves for XRP and other leading coins.