XRP Surges as Fed Chair Powell Resignation Rumors Rock Markets

The XRP market experienced a significant upswing recently amid swirling rumors suggesting that Jerome Powell, the current Chair of the U.S. Federal Reserve, may be stepping down. This unexpected buzz created ripples across the entire cryptocurrency space, especially influencing XRP and Bitcoin.

The speculation originated earlier today when content began circulating on social media platform X, formerly Twitter. A document resembling a resignation letter bearing Powell’s name quickly drew attention. It was widely shared by a mixture of cryptocurrency influencers and politically conservative voices, inciting curiosity and reaction throughout the trading community.

Despite the excitement generated by the purported letter, it was immediately evident to many seasoned observers that the document lacked credibility. The letter featured poorly crafted language and a seal with illegible characters, which strongly indicated that it was a product of artificial intelligence. Commentators also pointed out design flaws and inconsistencies, reinforcing the conclusion that the letter was not legitimate.

Nonetheless, the rumors had a powerful psychological impact on market participants. XRP began climbing alongside Bitcoin following the letter’s spread. Bitcoin, in particular, moved closer to the $120,000 threshold—showing just how reactive the cryptocurrency market remains to macroeconomic speculation.

Adding fuel to the fire, Senator Cynthia Lummis, known for championing pro-Bitcoin policies, publicly encouraged Powell’s resignation during a recent interview. Her stance aligns with a broader conservative push against the Federal Reserve, primarily tied to dissatisfaction over how interest rates are being managed. Among Powell’s critics is Federal Housing Finance Agency Director Bill Pulte, who claimed that the resignation is imminent, although he was quick to clarify that it wouldn’t happen today.

Although unverified, the rumors coincided with an upsurge in investor enthusiasm around cryptocurrencies like XRP. Traders saw the potential turmoil in traditional monetary policy circles as a bullish signal for decentralized assets. Key figures in the crypto space echoed this sentiment. For example, prominent investor and crypto advocate Mike Novogratz dismissed the unfolding rumors as indicative of “Banana Republic” governance but simultaneously concluded it might be more reason to invest in assets like Bitcoin and, by extension, XRP.

It’s important to note that any forced departure of Powell before his term officially ends could send a disruptive message about the Federal Reserve’s autonomy. Yet, in the eyes of crypto investors, such a move could remove perceived barriers and bring further momentum to digital currencies striving for space in the modern financial system.

At the moment, no official confirmation or denial about Powell’s status has been released by the Federal Reserve. Despite efforts to debunk the letter as fake, its influence on market sentiment was undeniable. Crypto markets often respond rapidly to news—real or speculative—and XRP’s swift rise highlights just how sensitive digital assets remain to the larger economic narrative.

This event also underscores how social media continues to act as a catalyst for market movement. With just a single viral post, billions of dollars can flood into or exit various asset classes. In this instance, XRP benefitted from the brief but intense wave of interest generated from baseless rumors. Whether the upward momentum is sustained will depend on whether more concrete developments follow in the days ahead.

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

While the Federal Reserve chair retains his position for now, the mere hint of instability is enough to breathe fresh life into assets that rely on distrust of centralized control—something Ripple and XRP have consistently positioned themselves to capitalize on.