5 min readBitcoin, Ripple, and the broader cryptocurrency market are falling as Trump’s trade tariff developments hurt the market mood, and amid caution ahead of tomorrow’s Federal Reserve rate decision.
BTC is falling below 94k but remains within a familiar trading range after briefly rising to 97.9k last week.
Over the weekend, Trump announced further trade tariffs ON HIS Truth Social media. Trump declared that 100% tariffs will be applied to movies made outside the US, although the details are scarce. Trump also said that an announcement on pharmaceuticals would be made in the coming weeks.
These latest developments come after last week’s hopes of a slight de-escalation in the US-China trade war helped keep cryptocurrencies and broader risk assets buoyant.
Trump announced the Liberation Day trade tariffs over a month ago. However, the market remains very focused on the White House’s erratic trade policies, what they could mean for the broader economy, and the Fed’s outlook.
The Federal Reserve Open Committee (FOMC) two-day meeting kicks off today, with the Fed rate decision due tomorrow. The Fed is widely expected to leave rates unchanged. The market will watch for clues over the Fed’s economic outlook in light of Trump’s trade tariff announcements. While Fed Chair Powell has said the Fed is in no rush to cut rates again, the market is pricing in a June reduction. A more dovish-sounding Fed could help boost BTC.
XRP Q1 reports showed that on-chain activity weakened
XRP is pulling back, down 1.6% over the past 24 hours. The price is falling for a fifth straight session, dropping 7% over that period. At the time of writing, it trades at 2.10.
XRP is falling amid broader cryptocurrency weakness. However, XRP-specific factors are also weighing on the price.
Despite Ripple’s recent regulatory milestone and hopes of XRP ETFFs in the US, on-chain metrics are more concerning.
On-chain data shows a significant drop in activity on the Ledger. Daily active addresses have dropped to around 30,000 amid reduced transaction volume and liquidity. The Q1 XRP report shows a 37% decline in the number of transactions on XRPL from 167.7 million in Q4 last year to 105.5 million in Q1 2025. New wallet creation also dropped by 40%, and the amount of XRP burned as transaction fees declined by 30%.
At the same time, according to Santiment data, the social dominance measure of XRP’s discussions relative to other cryptocurrencies has faded in recent months, and decentralised exchange volume fell by 16%.
Whale activity is adding to the bearish narrative with large holders selling into price strength since the end of 2024. A combination of reduced network engagement and whale selling means XRP is falling. However, Ripple’s Q1 report suggests its Acquisition of Hidden Road could help boost on-chain activity.
Looking at the chart, XRP is extending declines and testing the key 200 SMA support. A break below here could see sellers gain momentum. Should this support hold, a recovery towards 2.30 could be on the cards.
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