XRP Price Drop Since ‘Crypto President’

What to Know:

• Since President Trump’s inauguration, XRP has experienced a 42% price decline, part of a broader downturn across the crypto market.
• The downturn follows an initial rally driven by pro-crypto policies. Macroeconomic factors and aggressive trade policies are now weighing on digital assets.
• Despite the recent slump, optimism remains, with the potential introduction of spot XRP ETFs as a possible catalyst for price recovery and institutional inflows.

The crypto market has faced significant headwinds since the inauguration of the “Crypto President,” Donald Trump. An analysis reveals a widespread sell-off affecting major cryptocurrencies, including XRP. While initial enthusiasm surrounded Trump’s pro-crypto stance, recent market behavior suggests a more complex interplay of factors influencing digital asset performance.

XRP Performance Post-Trump Inauguration

Following Donald Trump’s re-election in November 2024, the crypto community experienced a surge of optimism. Trump’s campaign promises of more favorable regulations and the creation of a national crypto reserve fueled a rally in crypto prices. XRP, in particular, saw substantial gains, climbing from around $0.50 before the election to $3.34 by Inauguration Day on January 20, 2025.

XRP’s Price Correction

Since January 20, however, XRP has experienced a significant correction. The token has fallen 45.20% from its inauguration day peak. This decline reflects broader market pressures, including Trump’s aggressive trade war with China, which has contributed to risk aversion among investors. One notable event on October 10 saw XRP plummet from $2.80 to $1.53, triggering a massive liquidation of over $700 million in XRP futures positions.

Macroeconomic Factors at Play

Beyond geopolitical tensions, macroeconomic developments have also played a crucial role in the crypto market’s downturn. Excessive leverage within the crypto derivatives market has amplified sell-offs, while external factors such as Japan’s recent interest rate hike have further pressured risk assets. These elements combine to create a challenging environment for digital assets, impacting market sentiment and investment flows.

Spot XRP ETF Prospects

Despite the recent market slump, optimism persists, particularly regarding the potential for spot XRP ETFs. The successful launch and inflows into spot Bitcoin ETFs have fueled speculation that similar products for XRP could serve as a major catalyst for price appreciation. Proponents argue that spot XRP ETFs could unlock new institutional capital, mirroring the impact of Bitcoin ETFs on BTC’s price.

ETF Inflows and Market Impact

Since November 14, spot XRP ETFs have seen consistent inflows. Currently, five XRP spot ETFs are actively trading in the U.S., attracting a combined $1.06 billion in cumulative inflows. These ETFs now hold $1.14 billion in net assets, reinforcing expectations of positive momentum for XRP. The performance of these ETFs will be closely watched as an indicator of institutional interest and potential price impact.

Navigating Market Uncertainty

The crypto market’s reaction to macroeconomic policies highlights the complex dynamics at play. While initial optimism surrounding pro-crypto policies drove prices higher, subsequent actions have underscored the need for careful navigation. The potential for spot XRP ETFs to drive renewed interest remains a key factor to watch, but broader market conditions and regulatory developments will ultimately shape XRP’s trajectory.

Related: XRP Investment Signals Key Partner Turn

Source: Original article