TLDR
- Analyst Steph Is Crypto believes the Federal Reserve’s next policy move could be bullish for XRP and the wider crypto market.
- The probability of a rate cut at the upcoming Federal Open Market Committee meeting is 89.7%.
- A rate cut is expected to increase liquidity, which could benefit risk-driven assets like XRP.
- XRP’s strong ties to institutional adoption make it particularly sensitive to macroeconomic shifts.
- A similar rate cut in 2024 led to a 500% surge in XRP, with experts predicting a similar outcome this time.
Analyst Steph Is Crypto believes the Federal Reserve’s next policy decision could be a bullish catalyst for XRP and the wider cryptocurrency market. The expert’s recent analysis highlights the increasing probability of a rate cut at the Federal Open Market Committee (FOMC) meeting on September 17. If the Fed cuts interest rates, it could positively impact XRP and other digital assets.
Rate Cut Likely to Support XRP and Crypto Market
The probability of a rate cut has surged to 89.7%. According to Steph Is Crypto, this shift could significantly affect broader market conditions. A reduction in the federal funds rate often leads to increased liquidity, which typically benefits risk-driven assets like XRP.
💥BREAKING:
There’s now an 90% chance of a rate cut in September.
BULLISH FOR CRYPTO & #XRP! pic.twitter.com/pMnXKoYQ5d
— STEPH IS CRYPTO (@Steph_iscrypto) September 1, 2025
A rate cut makes borrowing cheaper, which can drive investors to alternative assets such as cryptocurrencies. As liquidity increases, the value of digital assets may also rise. XRP, in particular, could see significant price movement if the Federal Reserve follows through with the expected rate change.
This scenario mirrors the market response to rate cuts in previous years. For example, a similar policy shift in 2024 led to a massive 500% surge in XRP’s price. Given the current economic conditions, a rate cut could spark another rally for XRP and other cryptocurrencies.
XRP’s Potential Response to a Rate Cut
XRP’s strong institutional ties make it particularly sensitive to macroeconomic changes. A Fed rate cut could unlock fresh capital flows into XRP, as institutional investors seek favorable conditions. Many expect XRP to benefit from renewed interest in digital assets following such a policy move.
A rate cut could benefit XRP and the broader crypto sector. As borrowing costs decrease, more liquidity enters the market, creating an ideal environment for crypto assets to thrive. The ongoing market sentiment suggests that a rate cut would boost investor confidence in XRP, encouraging further market participation.
If the Federal Reserve cuts rates, the momentum for XRP could be similar to the 2024 surge. Observers are eager to see if XRP will repeat or even surpass its previous performance in response to favorable policy shifts. The market’s expectation of a rate cut has created an optimistic outlook for XRP and other cryptocurrencies.