XRP saw a rapid rise in late August, but the upward trend has clearly slowed down recently. According to foreign media, CoinGecko data shows that XRP has fallen by nearly 6% in the past week. However, looking at a longer period, the token has still risen by more than 35% in the past 14 days and has also gained over 26% in the past month.

Bitcoin rebound drives upward movement

The article states that the previous round of increase for XRP occurred after Bitcoin once again surpassed $80,000. At that time, market risk appetite rebounded, driving a simultaneous strengthening of various crypto assets, including XRP.

Foreign media mentioned that U.S. President Donald Trump's remarks at a crypto event at the White House were also seen by the market as one of the factors that boosted sentiment. The reports quoted him as saying that the United States plans to purchase large amounts of Bitcoin and other cryptocurrencies, and these remarks once strengthened investors' confidence.

The Ministry of Finance's repurchase brings liquidity

In addition to market sentiment, the article also considers the U.S. Treasury Department's increase in the scale of treasury bond repurchases as another factor driving the rise of XRP. The report suggests that this measure has enhanced market liquidity, and some funds have subsequently flowed into the crypto market.

However, the article also points out that such momentum is more short-term in nature. As the initial liquidity effects diminish, both XRP and the overall crypto market have shown signs of cooling down recently, and the upward momentum in prices has also slowed accordingly.

Interest rate expectations suppress risky assets

The article suggests that the hawkish signals from the Jackson Hole Conference may have exacerbated market concerns. The report mentions that the Federal Reserve Chairman Kevin Warsh emphasized the risk of rising inflation and hinted at the possibility of further interest rate hikes.

If interest rates continue to rise, the funding pressure on risky assets may increase, and the crypto market could also be dragged down. Based on this, the article concludes that if interest rate expectations continue to tighten, and coupled with the liquidity return brought about by the Treasury Department's repurchases, XRP may face a new round of downward pressure, and there is even a possibility of falling below the $1 mark again.

• XRP Has Fallen Nearly 6% in the Past 7 Days
• Still rose by over 35% in the past 14 days
• On August 22, it once rose to $1.66.