Bitcoin and XRP are tumbling amid economic and geopolitical turmoil. XRP has gained broader acceptance but remains far more speculative than Bitcoin. Bitcoin has weathered steep value declines in the past and, so far, has always bounced back. Cryptocurrencies generally thrive when economic conditions are good and interest rates are low.
During part of the COVID pandemic, when companies were on a hiring spree, the government was sending out stimulus checks, interest rates were low, and many crypto values surged. But times have changed. The job market has tightened, layoffs reached a four-year high in 2025, and interest rates are much higher than they were just a few years ago. What’s more, geopolitical moves by the Trump administration are causing many to feel doubtful about where the U.S. and some of its allies are headed.
The Department of Justice recently opened an investigation into Powell that left many concerned about the Federal Reserve’s independence. In short, Bitcoin and XRP investors (and many others) are looking around at all of the upheaval and choosing to put their money into much safer places right now. XRP is a more speculative investment than Bitcoin despite its ample real-world use cases. XRP’s blockchain can help speed up cross-border transactions, and the recent launch of some XRP exchange-traded funds (ETFs) has given the crypto credibility, but it’s still not as well-established as Bitcoin.
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