XRP market volatility has reached historically low levels as traders await hints about future monetary policy from Federal Reserve Chair Jerome Powell. His highly anticipated address at the Jackson Hole Symposium from August 21 to 23 could signal a pivot in global economic direction.

Volatility Drops Across Key Financial Assets

The broader crypto market, including XRP, has mirrored this calm. According to TradingView, Bitcoin’s 30-day implied volatility dropped to levels not seen in nearly two years, stabilizing around 36%. Similarly, implied volatility for gold—tracked by the CME Gold Volatility Index (GVZ)—was reported at 15.22%, falling by more than half over the last four months.

Volatility across cryptocurrencies, gold, and bonds appears to be at multi-year lows. Source: TradingView

Bonds have also seen calm. The MOVE index, which captures 30-day implied volatility for U.S. Treasury notes, slid to a 3.5-year low at 76%. Meanwhile, the VIX—a common gauge of market fear—dropped below 14%, significantly down from its April peak of nearly 45%. Signs of reduced volatility were also observed in major currency pairs. A similar vol compression is seen in the EUR/USD pair.

Monetary Easing Signals Support Market Optimism

This multi-asset tranquility is driven partly by expectations around central bank policies. Unlike previous easing efforts post-2008 or during the COVID-era, interest rates today remain in restrictive territory. As noted by analyst Endgame Macro, most economies are easing from elevated rates—not from emergency lows.

The CME FedWatch tool indicates markets anticipate a 25 basis point rate cut in September. JPMorgan projects a decrease in the U.S. benchmark rate to between 3.25%-3.5% by Q1 2026, marking a 100-point drop from today’s 4.25%.

Market watchers increasingly believe Powell’s speech in Jackson Hole could initiate the next phase of rate reductions. According to Angelo Kourkafas from Edward Jones, signs of static inflation and rising labor market strain could push the Fed toward action. “Powell’s upcoming remarks… could validate high expectations that, after a seven-month pause, rate cuts will resume in September,” said Kourkafas in a Friday blog update.

In short, the recent collapse in XRP and crypto volatility reflects rising confidence in economic stability and a less aggressive Fed posture.

Caution Flags: Is Market Confidence Overblown?

Despite this calm, some experts warn that investors may be underestimating potential disruption. Lingering inflation, ongoing political developments such as new trade tariffs, and rapidly climbing asset values—including XRP—suggest markets might be mispricing risk.

Scott Bauer of Prosper Trading Academy warned on Schwab Network that ultra-low volatility might not reflect upcoming economic realities. The same holds true for bond markets, where corporate credit spreads narrowed to levels not seen since 2007, prompting warnings from Goldman Sachs.

As Goldman’s July 31 research note revealed: “There are enough sources of downside risks to warrant keeping some hedges on in portfolios.” Analysts also cited potential risks such as renewed inflation, weakening economic growth, or concerns over central bank independence.

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

Historically, market volatility tends to revert to its long-term average. Therefore, the current stretch of low fluctuations could signal a more turbulent phase ahead for XRP and other assets.