- Trump’s economic policies and shifting investor sentiment have weakened XRP, despite initial optimism from regulatory wins.
- Delays in an XRP ETF and Wall Street’s focus on Bitcoin and Ethereum have further dampened its growth in 2025.
Despite a promising start, XRP has struggled throughout 2025, experiencing a sharp decline from its January peak. While the cryptocurrency initially surged by 549%, it now sits at $2.10—down over 36% from its high of $3.31. The broader crypto market has faced significant headwinds, but XRP has been hit particularly hard, with former President Donald Trump’s policies playing a key role in shaping its downturn.
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Regulatory Shifts and Economic Uncertainty
Although Trump has not directly targeted XRP, his administration’s economic and regulatory strategies have significantly influenced investor sentiment. One of the major blows to the crypto market was the rollback of financial regulations that inadvertently led to increased market volatility.
Trump’s pro-business stance initially led to speculation that cryptocurrencies would benefit from a more relaxed regulatory environment. However, the opposite has occurred—Wall Street’s growing dominance over digital assets has led to increased market manipulation concerns. Institutional investors, who once seemed poised to fuel a new wave of growth for XRP, have instead pulled back, prioritizing Bitcoin and Ethereum.
Furthermore, with the Securities and Exchange Commission (SEC) dropping its lawsuit against Ripple, many expected XRP to rally. However, after an initial spike, the token failed to sustain momentum, signaling that broader macroeconomic trends outweighed this legal victory. The resignation of SEC Chair Gary Gensler—an event expected to boost XRP—also failed to generate lasting optimism.
XRP ETF Hype Fizzles Out
The crypto industry had high hopes for an XRP spot exchange-traded fund (ETF), especially after the approval of Bitcoin and Ethereum ETFs. However, delays in an XRP ETF have dampened investor enthusiasm. With Ethereum ETFs failing to drive sustained price appreciation—ETH fell over 47% between July 2024 and March 2025—many investors now question whether an XRP ETF would have the expected impact.
Adding to the uncertainty, Trump Media’s partnership with Crypto.com on cryptocurrency exchange-traded products suggests that ETFs may no longer be the game-changer they once were. As these financial instruments become more common, their ability to drive long-term price appreciation appears to be weakening.
What’s Next for XRP?
While XRP remains a significant player in the crypto space, its recent struggles highlight the impact of macroeconomic trends and shifting investor priorities. With Trump’s policies steering financial markets toward traditional assets and institutional investors showing less interest in altcoins, XRP’s path to recovery remains uncertain.
Unless XRP can regain its former significance within the regulatory landscape or secure major institutional backing, its price may continue to lag behind expectations in 2025.
