Why XRP (Ripple) Is Rising Today (Hint: It Has to Do With President Trump)

The market hit another all-time high today as investors looked past concerns over inflation and tariffs, and bought stocks and cryptocurrencies, which largely rose as well. As of 4:18 p.m. ET, the price of XRP (CRYPTO: XRP) traded 5.6% higher from late afternoon yesterday for a few different reasons.

The Trump bump and ETFs

Part of the reason for XRP's strong performance today appears to be related to President Trump posting two articles on Truth Social about Ripple, the company behind XRP. The articles discussed comments from Ripple CEO Brad Garlinghouse, who said that 75% of the company's openings are now based in the U.S. due to the Trump administration. Garlinghouse also said Ripple has landed more deals in the U.S. due to a better business environment.

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Since Trump got elected on Nov. 5, XRP has been one of the strongest performers in the sector, having risen over 400%. In crypto, it's not uncommon for a token to suddenly rise after remarks are made by someone who is very influential on social media, and few carry more influence than Trump. The meme token Dogecoin experiences similar bounces when Elon Musk tweets about the token on his platform X.

XRP Price data by YCharts.

Other news that might be fueling the move today come from the Securities and Exchange Commission (SEC), whose recent filings show that more asset managers have applied to establish U.S. spot-XRP exchange-traded funds (ETFs). ETF analysts at Bloomberg recently said they see a strong possibility of several new spot-crypto ETFs, including a 65% chance for XRP.

Further catalysts ahead

The environment has improved dramatically for cryptocurrencies because the Trump administration is expected to implement much friendlier regulatory policies than former President Biden's administration. XRP has catalysts ahead, including the potential dismissal of an appeal by the SEC in a long-standing lawsuit concerning spot-XRP ETFs. I assume some of this has been priced in, and most cryptocurrencies remain volatile, which is why I recommend a smaller, more speculative position in XRP.

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Bram Berkowitz has positions in XRP. The Motley Fool has positions in and recommends XRP. The Motley Fool has a disclosure policy.