The cryptocurrency market has seen a significant uptick in activity, particularly on September 17, 2025, following the Federal Reserve’s decision to cut interest rates by 25 basis points. This marked the first rate reduction of the year, adjusting the benchmark rate to a range of 4.00% to 4.25%. The immediate aftermath of this announcement sparked notable gains across major digital assets, with XRP standing out as a key performer.
The unanimous decision by the Federal Open Market Committee (FOMC) to lower rates was described by Fed Chairman Jerome Powell as a “risk management” measure. He noted a slowdown in job growth and a slight uptick in unemployment, emphasizing a cautious economic outlook. The dovish move from the central bank is seen as a response to dwindling economic momentum, creating a conducive environment for riskier assets like cryptocurrencies. Vijay Valecha, Chief Investment Officer at Century Financial, highlighted that consumer spending’s deceleration has negatively affected economic growth, with the U.S. economy growing at just 1.5% in the first half of 2025 compared to 2.5% the previous year.
After the rate cut, XRP surged over 1.5% on September 17, reaching a closing price of $3.08 and achieving intraday highs close to $3.11. Despite a modest pullback of 0.6% to $3.06 on September 18 as markets adjusted to the implications of the rate decision, the positive sentiment surrounding XRP remains strong.
Analysts have pointed out that this rate cut may have broader implications for the cryptocurrency market. Kathleen Brooks, a prominent analyst, noted that the Fed’s forward guidance suggests a downward revision in interest rate forecasts for 2025, potentially indicating further cuts on the horizon. Historically, September has been a weak month for XRP and cryptocurrencies overall, yet this year appears to break the trend, with XRP already up 11%.
Josip Rupena, CEO of Milo, reiterated that lower interest rates generally favor “risk-on” assets, encouraging investors to allocate more capital toward equities and cryptocurrencies as liquidity improves.
Technical analysis supports a bullish outlook for XRP. Following the Fed’s announcements, XRP displayed its strongest performance of the week, maintaining a consolidation pattern around the $3 level. Current support levels are reinforced by the 50-day exponential moving average and recent Fibonacci retracement indicators. Immediate resistance is observed at $3.13, while ultimate resistance may be found between $3.60 and $3.66.
Recent institutional developments might further bolster optimism for XRP. On September 18, REX-Osprey launched the first U.S.-listed spot ETFs for XRP and DOGE, allowing American investors unprecedented access to these digital assets via ETF structures. Additionally, the CME Group has announced plans to introduce options on XRP and SOL futures by mid-October, pending regulatory review.
As the crypto landscape evolves, the overall market capitalization rose by 2% to $4.2 trillion, buoyed by Bitcoin’s steady ascent towards $118,000. Analysts predict Bitcoin may reach new heights, with estimates of all-time highs above $124,000 by the end of October.
While these developments paint an optimistic picture for XRP and the broader cryptocurrency market, potential investors are advised to tread carefully. Current support levels and volatility considerations remain crucial as investors weigh the risks inherent in cryptocurrency investments, particularly in light of the Fed’s shifting monetary policy.
