Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
XRP Falls 6% Amid Fed Rate Reduction and Ongoing Liquidity Crunch

XRP Falls 6% Amid Fed Rate Reduction and Ongoing Liquidity Crunch

Bitget-RWA2025/09/26 06:33
By:Coin World

- XRP fell 6% after the Fed's September 2025 rate cut, triggering a crypto sell-off with $1.5B in leveraged liquidations. - Altseason Index dropped to 67, reflecting weak on-chain activity and institutional ETF inflow slowdowns as investors recalibrated risk. - XRP's $2.83 price and breached $3.00 support signaled technical fragility, compounded by liquidity challenges vs. Bitcoin/Ethereum. - Analysts note cautious optimism for long-term recovery, contingent on macroeconomic stability and ETF flow normaliz

XRP Falls 6% Amid Fed Rate Reduction and Ongoing Liquidity Crunch image 0

Despite recent volatility in the market, XRP investors have shown notable perseverance. The cryptocurrency’s value dropped by 6% following the U.S. Federal Reserve’s interest rate cut on September 17, 2025. Although this was the Fed’s first rate decrease of the year and initially sparked optimism for a crypto surge, it instead led to widespread sell-offs among leading digital assets.

, along with and , came under heavy selling pressure, with XRP’s price falling to $2.83 within a day. The downturn was intensified by the unwinding of speculative bets and forced liquidations, wiping out more than $1.5 billion in long positions across trading platforms.

During the same timeframe, the Altseason Index—which tracks the momentum of alternative cryptocurrencies—fell sharply from 100 to 67, highlighting a shift in market sentiment. XRP’s challenges were made worse by sluggish on-chain metrics, such as a decrease in the Spent Output Profit Ratio (SOPR) to 1.01, suggesting some investors sold at a loss. Experts pointed out that the token’s technical outlook was weak, with crucial support at $3.00 breaking down and the inability to reclaim this level hinting at further declines.

Broader economic and institutional trends also contributed to the downturn. Inflows into Bitcoin ETFs, which had previously fueled institutional interest earlier in 2025, began to slow. Late September saw Bitcoin ETFs bring in just $15 million, the smallest weekly net inflow since the start of the year. At the same time, Ethereum ETFs experienced outflows, losing $1.89 million in a single day. These developments reflected a more cautious approach from institutions, as investors reassessed their positions amid uncertainty about the Fed’s next moves.

Analysts emphasized the fragile balance between leverage and liquidity in the market. Although the Fed’s rate cut was anticipated, policymakers’ hawkish comments—stressing data-driven decisions and fewer rate reductions in 2025—added to the uncertainty. This prompted a “sell the news” response, with traders closing long positions and scaling back leverage. XRP, which has less liquidity than Bitcoin and Ethereum, was especially susceptible to forced liquidations and margin calls.

While the short-term outlook remains cautious, some market observers are still positive about XRP’s future. The price movement indicates a period of consolidation, with resistance near $3.00 and support in the $2.70–$2.80 range. Ongoing institutional buying, including acquisitions by Japan’s Metaplanet and Bitcoin treasury companies, shows sustained interest in digital currencies. Nevertheless, XRP’s recovery will rely on overall economic stability, clearer regulations, and a rebound in ETF activity.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Ethereum News Today: "Ethereum ETFs Attract $175M Investments as Prices Fall—Large Holders Wager on Potential Undervaluation and Rebound"

- Ethereum's price rose above $3,000 amid $175M in 2-day ETF inflows led by BlackRock and Fidelity, signaling growing institutional demand for regulated crypto exposure. - Whale wallets accumulated 3% of ETH supply at lower prices, contrasting short-term bearish technical indicators and showing historical dip-buying patterns. - Macroeconomic uncertainties including Fed rate cut expectations and government shutdown risks created mixed signals in futures markets despite ETF-driven optimism. - Analysts predic

Bitget-RWA2025/11/30 18:22
Ethereum News Today: "Ethereum ETFs Attract $175M Investments as Prices Fall—Large Holders Wager on Potential Undervaluation and Rebound"

Ethereum Updates Today: Diverging Views on Ethereum’s Value: Conventional Analysis Versus Blockchain-Based Reasoning

- Simon Kim's Ethereum Valuation Dashboard estimates the network is 57% undervalued at $3,022 vs. a $4,747 fair price using 8 blended models. - High-reliability models like Metcalfe's Law ($9,583) and DCF ($9,067) contrast with traditional metrics showing 70% overvaluation. - Institutional adoption grows as Bhutan stakes $970k ETH and migrates to Ethereum, while technical indicators test key support levels. - Kim emphasizes market sentiment and regulation outweigh metrics, as crypto-native and traditional

Bitget-RWA2025/11/30 18:22
Ethereum Updates Today: Diverging Views on Ethereum’s Value: Conventional Analysis Versus Blockchain-Based Reasoning

XRP News Today: XRP ETF Buzz Contrasts With On-Chain Slowdown—Will Institutional Interest Ignite a Surge?

- XRP faces critical juncture in December 2025 amid ETF adoption, subdued on-chain activity, and mixed price signals. - Three major XRP ETFs (XRPZ, GXRP, XRPC) attracted $164M in first-day inflows, boosting institutional credibility but not yet driving robust token usage. - Price fluctuates near $2.20-$2.24 range as analysts monitor technical levels; breakout above $2.24 could target $2.30-$2.75, while breakdown risks $1.88-$1.91. - Future depends on ETF inflows, RippleNet expansion, RLUSD adoption, and ma

Bitget-RWA2025/11/30 18:22
XRP News Today: XRP ETF Buzz Contrasts With On-Chain Slowdown—Will Institutional Interest Ignite a Surge?