XRP Price Climbed 14% on Wednesday Clawing Back Half of the Losses Booked When Trump Announced Tariffs

Ripple (XRP) rebound 14% as Trump Administration Hints Are Tariff Easing

If the brilliant mind behind the Bitcoin whitepaper could be credited with sparking the decentralized finance revolution, then perhaps the recent slew of activity by the Trump administration to forge new trade deals and pivot towards cryptocurrencies could be seen as the macroeconomic catalyst that finally pushes crypto prices to new highs in 2025.

Indeed, administration officials have been making notable efforts to diversify the U.S. Treasury’s foreign currency reserves, and reports that the White House is considering adding five cryptocurrencies to the mix has sparked a surge in interest among crypto traders.

The burning question on everyone’s mind is: which five crypto assets could be in line for this historic inclusion?

Earlier this year, the administration officials began making suggestions for which cryptocurrencies should be included in the U.S. Treasury’s foreign currency reserves. However, these suggestions were met with resistance from administration aides, who argued that such an addition would be a distraction from the president’s agenda.

Despite the initial setback, the topic of cryptocurrencies in the U.S. Treasury portfolio appears to be heating up once again.

In a recent interview with Blockware, Trump administration official Michael McFaul discussed the possibility of the administration pivoting towards cryptocurrencies as a hedge against inflation and to broaden the Treasury’s investment strategy.

McFaul, who is a political advisor to the administration and a former ambassador to Russia, stated that the administration is aware of the potential benefits of cryptocurrencies and is actively considering them for inclusion in the Treasury’s strategic reserve.

His comments follow a report by Real Vision last month, which claimed that the Trump administration is planning to add five cryptocurrencies to the U.S. Treasury’s portfolio.

According to Real Vision, the administration is keen on diversifying the Treasury’s investments beyond traditional foreign currencies, and they are currently evaluating the possibility of investing in a basket of the world’s largest cryptocurrencies.

The report also noted that the administration is sensitive to the political implications of such a move and would prefer to make the announcement in the final months of Trump’s term to maximize its impact.

Among the cryptocurrencies that are reportedly being considered for inclusion are Bitcoin, Ethereum, Litecoin, Stellar Lumens, and Ripple. These five cryptocurrencies are among the most popular and widely traded in the world.

They also have a large and active community of users and developers who are passionate about their respective projects.

The possibility of the Trump administration investing in cryptocurrencies has sparked a great deal of interest among crypto traders.

Many traders believe that the administration’s involvement in the crypto market could lead to a surge in prices, especially if the administration decides to invest heavily in a specific cryptocurrency.

The administration is also known for its willingness to use tariffs and other trade barriers to achieve its economic goals.

In the past, the administration has imposed tariffs on goods imported from Canada and Mexico, sparking threats of retaliation from these countries.

However, recent reports suggest that the administration may be willing to ease some of these tariffs in a bid to reduce inflation and improve the economy.

According to Benzinga, the U.S. secretary of commerce, Wilbur Ross, has hinted at the possibility of Trump easing tariffs levied on Canada and Mexico.

Anticipating a lesser inflationary impact, traders may be displaying increased interest in buying cryptocurrencies.

Specifically, investors are likely to pay close attention to the five crypto assets handpicked by trump for the U.S. Treasury’s strategic reserves.

As these institutions channel more funds into crypto in search of higher yields amid a low-interest-rate environment, it could propel a rapid ascent in crypto prices throughout 2025.

Could Thinning Market Supply Send XRP Price Rallying Towards $20?

As the new week commences, the price of XRP shows no signs of slowing down. After notching impressive gains of 30% over the last seven days, XRP/USD is poised to continue its rally.

The Bollinger Bands on the four-hour chart suggest that price volatility is compressing, with the price currently testing the upper band at $2.9337. A decisive move above this level could spark a breakout rally toward $3.00.

However, rejection at current levels risks further downside toward the lower band at $2.0616.

The Relative Strength Index (RSI) at 49.19 is neutral, indicating a balance between buyers and sellers. Its proximity to the 50 threshold suggests that momentum could tilt in either direction.

If XRP price manages to close above $2.50 with increasing volume, it could confirm bullish strength and encourage a continuation of the uptrend.

Conversely, a drop below 43.37 on the RSI could signal renewed bearish momentum, pushing price back toward the $2.00-$2.03 demand zone.

If bulls manage to defend this level, XRP could regain strength and target the $3.00 breakout