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Bitcoin and XRP are tumbling amid economic and geopolitical turmoil.
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XRP has gained broader acceptance but remains far more speculative than Bitcoin.
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Bitcoin has weathered steep value declines in the past and, so far, has always bounced back.
Cryptocurrency values have been falling lately as investors try to gauge geopolitical turmoil, the job market, and the Federal Reserve’s independence. Cryptocurrencies are typically more volatile than stocks, so their responses to upheaval lead to even more drastic price swings than equities.
Bitcoin (CRYPTO: BTC) and XRP (CRYPTO: XRP) haven’t been immune to the market’s recent turmoil. Bitcoin’s price is down 25%, and XRP has slid 46% during the past six months.
Image source: Getty Images.
Cryptocurrencies generally thrive when economic conditions are good and interest rates are low. For example, 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 soared.
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.
Topping all of this off is the fact that President Donald Trump has repeatedly expressed interest in Federal Reserve Chairman Jerome Powell being removed from his position. 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 unheaval 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. Nor is XRP needed for using the blockchain created by its backer, Ripple. Fiat currencies and stabelcoins can also be used to make transfers on the blockchain, raising doubts about XRP’s utility.
As the world’s most valuable cryptocurrency, Bitcoin also enjoys a little more value stability than smaller cryptocurrencies. Bitcoin has weathered many significant declines in the past only to see its value come back stronger later, which may encourage some existing Bitcoin investors to hold onto their position rather than sell.
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