XRP Tanks in Trump-Triggered Crypto Sell-Off
On Wednesday, April 2, dubbed Liberation Day, US President Trump announced punitive tariffs that rattled risk assets. XRP ranked among the worst-performing top ten cryptos, as markets feared adverse economic effects and the potential for retaliatory tariffs on US goods.
The crypto market’s reaction mirrored traditional asset classes, with Dow Futures tumbling by a whopping 1,017 points. Meanwhile, the flight to safety drove gold to a record high of $3,168.
SEC Closed Meeting: Will There Be an Appeal Withdrawal?
Amid the tariff clamor, today’s SEC Closed Meeting will draw intense focus. Investors await a possible formal withdrawal of the SEC’s appeal against the Programmatic Sales of XRP ruling. Acting SEC Chair Mark Uyeda, Crypto Task Force Head Hester Peirce, and Commissioner Carolin Crenshaw must vote on the matter, with the Republicans holding a 2-1 majority.
An appeal withdrawal could lead Ripple to drop its cross-appeal, paving the way for a settlement request to Judge Analisa Torres that could:
- Reduce the $150 million penalty for US securities law violations to $50 million.
- Vacate the injunction prohibiting XRP sales to institutional investors, removing a key constraint on Ripple’s US expansion.
The SEC’s official appeal withdrawal would set the stage for a US XRP-spot ETF market. A settlement would enable Ripple to scale its on-demand liquidity (ODL) and XRP Ledger services across the US, free from litigation risks.
XRP Price Outlook: Appeal Withdrawal and XRP-Spot ETFs
On Wednesday, April 2, XRP slid 5.42%, reversing Tuesday’s 2.35% gain, to close at $2.0230. The broader market dropped 3.49% to a total crypto market cap of $2.61 trillion.
Bitcoin Price Forecast
Every new Bitcoin analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all Bitcoin forecastsAfter Wednesday’s tariff announcements, several key factors will likely influence XRP’s near-term trajectory:
- SEC vs. Ripple Court Filings: An SEC appeal withdrawal, Ripple’s cross-appeal exit, and a vacation of the injunction could trigger an XRP move toward its record high of $3.5505 (Binance exchange).
- XRP-Spot ETF Prospects: With 18 XRP ETF applications pending, approval could spur institutional demand and push prices beyond $3.5505. Delays may limit upside potential.
- Macroeconomic risks: A deepening trade war or rising US recession fears could drag XRP toward $1.7938. Conversely, easing risk aversion could support a rebound toward $3.
Explore our XRP forecast dashboard here.
Bitcoin Suffers as Trump Tariffs Spur Return to Pre-Election Levels
XRP’s losses tracked bitcoin (BTC), which faced intense selling pressure after Trump’s tariff announcements. However, BTC-spot ETF inflows helped absorb some retail outflows, underscoring the importance of sticky institutional money.
Farside Investors reported the following April 2 flows:
- Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $118.8 million.
- ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $130.2 million.
- Grayscale Bitcoin Mini ETF (BTC) had net inflows of $34.3 million.
- Bitwise Bitcoin ETF (BITB) recorded net inflows of $33.4 million.
Excluding flows from BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), net inflows totaled $334 million on April 2, reversing April 1’s $157.8 million outflows. Notably, Wednesday’s inflows ended a three-day outflow streak.
However, the rebound in flows may be temporary. The Nasdaq 100 Futures plunged 759 points in after-hours trading in reaction to Trump’s tariffs.
Bitcoin Price Outlook: Key Scenarios
On April 2, BTC slid by 3.07%, partially reversing Tuesday’s 3.20% to close at $82,536.
Santiment commented on the crypto market’s reaction to Trump’s tariffs:
“Trump’s reciprocal tariffs aim to increase government revenue & pressure fairer global trade. But trade war fears have led to immediate crypto volatility.”
On crypto’s role as digital gold, Santiment added:
“The premise of crypto being the alternative ‘digital gold’ has so far proven to be vastly overstated. Instead, Bitcoin has mostly mirrored the S&P 500 throughout 2025 so far, with very temporary cases of decoupling. And as for altcoins, most have fared far worse than BTC.”
However, regarding potential outcomes, Santiment stated:
“So how crypto markets get impacted will likely depend on the world’s reaction now that the US has made their rumored tariffs official. If other countries call Trump’s bluff and start a trade war, there will undoubtedly be some long-term pain seen across both stock and crypto markets. But if they cave and begin to lower their own tariffs toward the US as a gesture to make imports/exports more affordable across the world, this could have amazing bullish consequences.”
BTC potential price scenarios include:
- Bearish Scenario: Trade retaliation, ETF outflows, or opposition to the Bitcoin Act could drag BTC toward $70,000.
- Bullish Scenario: Global tariff reductions, bipartisan crypto support, and sustained ETF inflows could lift BTC toward $109,312.
Market Outlook: Themes to Watch
Key themes influencing the crypto market direction include:
- The outcome of the SEC vs. Ripple case.
- Retaliatory tariff risks.
- Legislative developments surrounding the Bitcoin Act.
- US services and labor market data.
- BTC-spot ETF flow trends.
Recent SEC developments may reduce immediate uncertainty. However, long-term investor confidence depends on regulatory clarity. See what analysts say cryptos need to hit record highs.
