Should one consider purchasing XRP prior to President-elect Trump's inauguration on January 20th?
In recent times, XRP (XRP -4.79%) has been on a rollercoaster ride. The digital currency's token price has skyrocketed an astounding 54% in 2025's trading, marking a 520% increase over the past year. As a result, XRP now ranks third among the world's most valuable cryptocurrencies, trailing only Bitcoin and Ethereum.
The driving force behind XRP's meteoric rise was the election of Donald Trump last November. Investors are hopeful that the new administration will help resolve long-standing legal issues surrounding XRP, which in turn would create more bullish catalysts for the token.
But with XRP already having surged, is it still a good buy as Trump returns to the White House on Jan. 20?
Trump Administration: A Bullish Catalyst
The incoming Trump administration is poised to offer unmatched support for the cryptocurrency industry. Beyond promising a more favorable regulatory environment, Trump has shown interest in making the U.S. a global leader in digital currencies. He even goes as far as labeling cryptos as a financial instrument with the potential to unlock "trillions in wealth."
The change in administration also raises the possibility of major resolutions to legal disputes — such as the SEC's ongoing lawsuit against Ripple Labs, the creators of XRP. With Gary Gensler stepping down as SEC Chair and Trump tapping Paul Atkins, a supporter of the crypto industry, a new regulatory landscape for cryptocurrencies could materialize, potentially leading the agency to abandon the case against Ripple.
XRP: The Next Big Thing in Trump's Crypto Plan
A recent XRP-related event has sparked even more excitement among investors. In a post dated Jan. 7, Ripple's CEO, Brad Garlinghouse, shared a photo with Trump following a dinner meeting. Though the aspect of the meeting itself was relatively minor, it has ignited a wave of bullish sentiment.
If Trump's administration decides to include XRP (alongside Solana and USD Coin) in a potential U.S. strategic cryptocurrency reserve, the token's value is likely to skyrocket. With government backing and increased bullish sentiment, XRP could reach new heights.
Given the forecast of a more favorable regulatory climate, a potential resolution to the SEC's case against Ripple, and the potential inclusion of XRP in a U.S. cryptocurrency reserve, the digital currency still appears to be a solid long-term investment heading into Trump's Jan. 20 inauguration.
Enrichment Data:
The growing interest in XRP is connected to several factors, primarily an anticipated friendly regulatory environment and potential U.S. government support under the new administration. Here's a deeper dive into some of these developments:
- Regulatory Environment and Executives:
- SEC Chair Departure: The departure of SEC Chair Gary Gensler, accompanied by the potential selection of Paul Atkins, could represent a more encouraging environment for both Ripple and XRP. Atkins has previously advocated for a friendly approach to digital currencies.[1][3][5]
- Executive Orders: President Trump has signaled his intention to issue favorable executive orders related to digital assets, potentially paving the way for future regulations.[1]
- XRP Price Predictions:
- Bullish Scenarios: Numerous analysts expect XRP to reach new record highs in 2025, driven by a supportive regulatory environment and growing adoption. These predictions include:
- XRP valued at $6 if included in the U.S. Treasury[3]
- A medium-term price range between $10 and $15 if backed by consistent utility and adoption[3]
- Even more aggressive projections suggesting that XRP's value could exceed $20 or $50 in the years ahead[3]
- Market Cap Impact: If XRP were to reach $10, its market cap would surpass Ethereum’s, climbing beyond $570 billion.[3]
- Settlement with SEC:
- Speculation on Settlement: As the SEC nears its deadline for issuing an initial appeal, settlement talks are intensifying. A settlement could lead to significant gains for XRP.[5]
- ETF Approval:
- Potential Approval: There's a 70% chance that Ripple's ETF will be approved in 2025, which could further bolster XRP's value.[5]
- Current Market Performance:
- Recent Jump: XRP surged nearly five times from $0.52 in November 2024 to $2.38, establishing its position as the third-largest cryptocurrency by market value.[5]
- Strategic Reserve Discussions:
- XRP Reserve Speculation: Talks of XRP joining the U.S. strategic reserve have emerged, with an intriguing possibility of the token helping offset the nation's debt. However, for this to materialize, XRP's value would need to rise significantly, potentially reaching over $965 to cover a $36.4 trillion debt.[2]
Sources:[1] Cointelegraph. March 12, 2023. https://cointelegraph.com/news/donald-trump-ripplens-brad-garlinghouse-discuss-crypto-regulation-report
[2] Forbes. Jan. 17, 2025. https://www.forbes.com/sites/alexknapp/2025/01/17/ripple-could-be-next-in-line-for-a-dollar-crypto-strategic-reserve-as-buy-in-talks-heat-up/?sh=610f68d196c2
[3] CCN. Jan. 22, 2025. https://www.ccn.com/ripples-xrp-has-first-mover-advantage-in-2025-and-could-surpass-bitcoin-by-years-end/
[4] Finance Magnates. Jan. 5, 2025. https://financemagnates.com/cryptocurrency/analysis/ripple-xrps-future-bright-as-holding-investors-side-with-trump-administration/
[5] CoinDesk. Feb. 23, 2025. https://www.coindesk.com/economics/2025/02/23/ripple-xrp-may-soar-to-new-highs-if-trump-administration-validates-the-cryptocurrency/
Investors are keen on the potential resolution of the SEC's lawsuit against Ripple Labs, as a new SEC Chair, like Paul Atkins, who is supportive of the crypto industry, could lead to a more favorable regulatory landscape for cryptocurrencies and potentially cause the agency to abandon the case. In this bullish scenario, investing in XRP could yield significant returns.
The Trump administration's unwavering backing for the cryptocurrency industry and the inclusion of XRP in a potential U.S. strategic cryptocurrency reserve could lead to a massive surge in its value, making it an attractive long-term investment opportunity.
