After some recovery momentum last week, risk-off trading resumed today. With the sell-off, XRP is now flat across 2025’s trading.
The cryptocurrency market saw a rise in selling action today as investors reacted to multiple risk factors and moved to take profits and reduce downside exposure. Valuations for tech stocks moved lower as investors reacted to existing bubble concerns and news that China’s latest DeepSeek artificial intelligence (AI) model is achieving results that rival offerings from top U.S. tech players. Meanwhile, geopolitical uncertainty also continued to spur sell-offs for stocks and cryptocurrencies.
Investors have become increasingly confident that the Federal Reserve will cut interest rates at its meeting later this month. That’s good news for XRP and other cryptocurrencies, but that hasn’t been enough to drive sustained bullish momentum for the token and broader crypto market lately.
Bitcoin, Ethereum, XRP, and other leading tokens have seen substantial valuation pullbacks even as stars seem to be aligning for another quarter-point rate cut this month. That sets up a challenging dynamic for crypto investors. The prospect of lower interest rates has been one of the biggest positive catalysts for the crypto market, but it now looks like that may not be enough to drive valuations higher in the near term. It’s possible that bullish momentum will resume if concerns about other risk factors ease, but the positive impact from another rate cut could wind up being lower than investors previously anticipated.
