XRP News Today: Crypto Sell-Off Deepens as XRP Faces Critical $2.8 Support Test; Bitcoin Slides to $112K amid Fed Uncertainty
By Bob Mason | Published August 20, 2025
The cryptocurrency market is experiencing intensified selling pressure, with XRP notably facing significant downside risk at a crucial support level near $2.80. This comes amid a broad crypto market correction and ongoing uncertainties in regulatory developments and Federal Reserve policy. Bitcoin (BTC) has also slipped below important support, trading around $112,000, adding to concerns over market volatility.
XRP Under Pressure Following Ripple-SEC Appeal Withdrawal
XRP has fallen approximately 15% from recent highs since Ripple Labs and the U.S. Securities and Exchange Commission (SEC) jointly filed a stipulation of dismissal, withdrawing their appeals in the long-running legal dispute. The withdrawal of appeals, signaling a closing chapter in the Ripple lawsuit, has paradoxically failed to ignite bullish momentum among investors.
Market participants had hoped for a swift resolution that would pave the way for wider XRP adoption and the approval of XRP-based exchange-traded funds (ETFs). However, the sentiment has remained subdued as:
- The SEC delayed decisions on spot ETFs for cryptocurrencies such as Solana until October, impacting expectations for XRP-spot ETF approvals.
- The outcome of Ripple’s application for a US-chartered bank license is pending, with the Office of the Comptroller of the Currency set to make a decision potentially by October.
- Legislative action on crypto reforms, including the CLARITY Act, remains stalled due to Congress being in recess until September.
These pending events are widely regarded as key catalysts for XRP’s potential breakout or further decline.
Broader Market Context and Ripple’s Long-Term Prospects
Ripple CEO Brad Garlinghouse has recently expressed confidence that the company could capture up to 14% of the global cross-border payments market currently dominated by SWIFT within the next five years. This represents a considerable opportunity for XRP’s adoption as Ripple’s blockchain technology serves as the settlement layer for many remittances.
However, in the short term, XRP is struggling to hold above the psychologically critical $3.00 mark. As of August 19, XRP closed at around $2.86, down over 6.5% for the day and underperforming the total crypto market decline of 3.4% which brought the overall market capitalization to approximately $3.74 trillion.
Technical outlook:
- A break above the 50-day Exponential Moving Average (EMA) could allow XRP bulls to target resistance near $3.10.
- Conversely, a failure to sustain the $2.8 support level may lead XRP to test its August 3 low near $2.73. —
Bitcoin Slides Below $115K Amid Fed Policy Uncertainty
Bitcoin has mirrored the broader crypto market weakness, dropping under $115,000 for the first time since early August to close near $112,881 on August 19. The decline is largely attributed to uncertainty surrounding U.S. monetary policy ahead of the annual Jackson Hole Economic Symposium and comments expected from Federal Reserve Chair Jerome Powell on August 22. Recent economic data on inflation and import prices have heightened speculation on whether the Fed will delay interest rate cuts to better assess inflationary impacts. Higher interest rates typically strengthen the U.S. dollar, increasing the opportunity cost of holding non-yielding assets like Bitcoin, thereby putting downward pressure on its price.
ETF Outflows Highlight Investor Caution
Investor sentiment has also been influenced by notable outflows from U.S. Bitcoin spot ETFs amid the macroeconomic uncertainty. According to Farside Investors, total net redemptions from major BTC spot ETFs reached $121.7 million on August 18, accelerating further on August 19. Key funds reporting outflows include:
- Fidelity Wise Origin Bitcoin Fund (FBTC): -$246.9 million
- Grayscale Bitcoin Trust (GBTC): -$115.5 million
- Bitwise Bitcoin ETF (BITB): -$86.8 million
- ARK 21Shares Bitcoin ETF (ARKB): -$63.3 million
Pending data from BlackRock’s iShares Bitcoin Trust (IBIT) may push total outflows further, marking a third consecutive session of net outflows. These trends are important for understanding Bitcoin’s supply-demand equilibrium and potential price movements.
Outlook and Key Events to Watch
Both XRP and BTC face defining moments in the coming weeks that will influence their price trajectories:
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For XRP, upcoming milestones include decisions on its spot ETF approvals, Ripple’s banking license application, developments related to the SWIFT payments network, and progress on crypto-related legislation such as the CLARITY Act.
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For Bitcoin, traders will be closely watching Federal Reserve communications including the FOMC meeting minutes, Powell’s Jackson Hole speech, and broader U.S. economic indicators like the Services PMI and jobless claims.
Potential scenarios:
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Bearish: Legislative gridlock, stagflation fears, hawkish Fed policy, and continued ETF outflows could drag Bitcoin toward $110,000, with the psychological $100,000 support at risk.
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Bullish: Bipartisan political support for crypto regulation, easing recession concerns, dovish Fed signals, and renewed ETF inflows could drive Bitcoin toward its record high of $123,731. —
Conclusion
The cryptocurrency market is navigating a challenging period marked by regulatory flux and macroeconomic uncertainty. XRP’s near-term fate hinges on several pivotal legal and regulatory events expected in October. Meanwhile, Bitcoin’s price struggles to maintain momentum pending clarity from the Federal Reserve and market inflows.
Investors and traders should monitor spot ETF approvals, congressional legislative developments, Fed communications, and economic data as they look for signs of a market turnaround or further downside.
About the Author:
Bob Mason has over 28 years of experience in the financial industry, working with global rating agencies and multinational banks. He specializes in market analysis and cryptocurrency trends.
For live updates and detailed forecasts on XRP, Bitcoin, and the broader crypto market, visit FXEmpire’s Cryptocurrency News section.