Despite high expectations, XRP’s performance in 2025 has been disappointing. While the token initially surged 549% in early-year trading, it is now down over 1.5% year-to-date (YTD) and sits at $2.10—36% below its January 17 peak of $3.31.
President Donald Trump’s policies significantly impacted the cryptocurrency market, including XRP. However, rather than direct intervention, the negative effects caused broader economic and regulatory shifts that have altered investor sentiment.
XRP’s Weak Performance Despite Lawsuit Shift
One of the most anticipated developments for XRP holders in recent years was the Securities and Exchange Commission (SEC) dropping its lawsuit against Ripple. Yet, rather than providing sustained upward momentum, the news only triggered a brief rally before the price quickly reversed.
This reaction suggests that external market forces are currently outweighing industry-specific developments. In previous years, XRP played a central role in the broader debate over cryptocurrency regulation, making it highly reactive to positive news. However, recent trends indicate it may be losing that significance.
The contrast between XRP’s reaction to the announcement that former SEC Chair Gary Gensler would step down and its lackluster performance following his resignation further highlights this shift. Many investors expected a friendlier regulatory environment to immediately boost digital assets, but their outlook at the end of Q1 2025 appears far less optimistic.
Is the XRP ETF Losing Its Impact Before It Even Exists?
For much of the past year, many crypto investors believed an XRP spot exchange-traded fund (ETF) could be a major bullish catalyst. The approval of Bitcoin (BTC) spot ETFs in early 2024 fueled expectations that similar products for other cryptocurrencies—such as Ethereum (ETH), Solana (SOL), and XRP—would follow.
However, with Ethereum ETFs launching in July 2024 and no sign of an XRP ETF by the end of Q1 2025, optimism has faded. Additionally, a recent development may further dampen enthusiasm.
On March 24, Trump Media announced a partnership with Crypto.com to issue cryptocurrency exchange-traded products. While seemingly positive, this move suggests that such financial instruments are becoming more common, potentially reducing the impact of any individual new ETF.
Even if an XRP ETF eventually gains approval, the precedent set by Ethereum’s ETFs is concerning. From July 2024 to March 31, 2025, ETH fell by over 47%, demonstrating that ETF approval alone does not guarantee long-term price appreciation.
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Ripple’s Uncertain Future Following the SEC Case
While Ripple may benefit from the end of the SEC lawsuit, the company still faces challenges. Much of its business in recent years has revolved around central bank digital currencies (CBDCs), but these initiatives have struggled to gain traction. Many of Ripple’s agreements involve smaller nations such as Bhutan and Montenegro, and interest in CBDCs appears to be declining overall.
President Trump has also taken a firm stance against the concept of a digital dollar, stating that the United States should not pursue such an initiative. This effectively removes the world’s largest economy from the CBDC race, limiting opportunities for Ripple in that sector.
Additionally, while increased regulatory clarity is generally beneficial for the company, it also exposes XRP to a broader pool of investors—many of whom do not share the long-term commitment typical of crypto enthusiasts. This increased liquidity could reduce the impact of large buy orders, making sustained rallies more difficult.
The 2025 XRP Bull Case
Despite the numerous challenges XRP faces in 2025, some investors still see upside potential. While broader economic conditions and shifting sentiment have weighed on its price, the token has survived multiple market cycles and retains a strong community.
Furthermore, Ripple’s extensive network of partnerships and technological advancements may provide long-term benefits, even if short-term struggles persist. While the case for a sustained bull run has weakened, there are still arguments for XRP’s potential recovery.
At the end of Q1 2025, however, it is clear that President Trump’s policies—whether intentional or not—have played a role in shaping an environment where XRP’s performance has fallen short of expectations.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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