XRP Plummets 45% as Tariff Fears Roil Markets

NEW YORK, April 7, 2025 — XRP, the cryptocurrency linked to Ripple, has seen a staggering 45% drop in value, plummeting from over $3.20 in January to approximately $1.80 now. The dramatic decline is primarily attributed to rising uncertainties in the macroeconomic environment triggered by President Donald Trump’s recent announcement of extensive tariffs on goods imported from over 100 countries.

Market analysts are concerned that these tariffs could negatively impact the U.S. economy and consumer spending. The situation worsened as China retaliated with unexpectedly high tariffs, further heating the ongoing trade war and putting pressure on traditional financial markets and cryptocurrencies alike.

Prior to this downturn, XRP had surged sixfold from around $0.50 in November 2024 to over $3 by mid-January 2025, paralleling a general enthusiastic trend for cryptocurrencies during that period. That optimism was reflected in Bitcoin‘s rise past the $100,000 mark. However, the recent tariff escalation has administered a sharp correction, even causing Bitcoin’s price to dip below $80,000.

Compounding the issue for XRP is its unique legal landscape; the U.S. Securities and Exchange Commission recently dropped its legal case against Ripple, which could have been a catalyst for price growth. Despite the favorable ruling, negative macroeconomic factors overshadowed what would typically be bullish news. As a result, profit-taking took precedence among investors.

Ripple operates a digital payment network that uses XRP to facilitate quick and low-cost international transfers. Experts suggest potential future catalysts for XRP’s recovery, including the possibility of an XRP exchange-traded fund being approved and ongoing expansion in the Ripple-led XRP Ledger ecosystem.

Cryptocurrency remains a high-risk asset class, with XRP’s performance inconsistent over recent years. The digital asset showed returns of 278% in 2021 but faced declines of 58% in 2022, marking a tumultuous ride compared to the more stable S&P 500, which recorded an uptrend of 27% in 2021 and an approximate 24% rise in 2023.

As the cryptocurrency market braces for further fluctuations, the challenge remains for XRP and other digital assets to establish themselves as reliable investment options amidst economic uncertainties.