Continued institutional inflows into Bitcoin ETFs bolster market sentiment, though geopolitical risks and liquidation events are exerting short-term downward pressure. XRP exhibits oversold conditions on the RSI, signaling a potential rebound contingent on improved sentiment. The overall market bias is neutral.

## XRP Price Impact Analysis (Based on News Released October 10, 2025) ### 1. Expansion of Bitcoin ETF Options Trading in the US and Deepening Institutional Investor Involvement Overview: The expansion of options trading for Bitcoin ETFs in the United States is underway, coinciding with a growing trend of institutional investors allocating capital to digital assets. According to a State Street report, institutional investors are projected to allocate 16% of their portfolios to digital assets by 2028, up from the current 7%. Morgan Stanley is also set to offer investment opportunities in cryptocurrency funds to all its clients starting October 15th. Impact on XRP: The expansion of Bitcoin ETF options trading is expected to enhance liquidity across the broader crypto asset market and encourage further institutional participation. This could indirectly benefit the altcoin market, including XRP. Specifically, Morgan Stanley's move to broaden access for its client base may significantly boost interest in cryptocurrencies among a wider range of investors. As institutional investors increase their digital asset allocations, interest is anticipated to grow not only in Bitcoin but also in other major altcoins, particularly established assets like XRP. However, the primary capital flow currently remains directed towards Bitcoin ETFs, potentially limiting the direct impact on XRP in the short term. Nevertheless, the overall market maturation and the rising risk tolerance among institutional investors are likely to be positive factors for XRP's long-term valuation. ### 2. $20 Billion Cryptocurrency Liquidation and Call for Regulatory Investigation Overview: The CEO of Crypto.com has called for regulatory investigation into exchanges following a record $20 billion in cryptocurrency liquidations within the past 24 hours. This call emphasizes the need for thorough oversight regarding exchange fairness, pricing mechanisms, and robust anti-manipulation and compliance management. Impact on XRP: Large-scale liquidation events and subsequent market downturns tend to negatively affect overall market sentiment. Liquidations resulting from leveraged trading, in particular, can exacerbate price declines. While the call for regulatory investigation holds the potential to enhance market transparency and fairness, it could also raise short-term concerns about increased regulatory tightening. XRP is susceptible to such broad market risk-off sentiment, potentially facing temporary downward price pressure. However, if the regulatory scrutiny ultimately leads to improved market health and increased future reliability, it could positively impact compliance-focused projects like XRP in the long run. ### 3. President Trump's Proposed Tariffs on China Shift Market Sentiment Towards "Fear" Overview: The announcement by US President Donald Trump of a potential 100% tariff on goods from China has caused cryptocurrency market sentiment to plummet to levels not seen in approximately six months, now indicating "Fear." Bitcoin briefly dipped to $102,000 following the news. Impact on XRP: Geopolitical risks and escalating trade tensions typically increase selling pressure on all risk assets. The cryptocurrency market, often more sensitive than traditional financial markets to such macroeconomic factors, is likely to react strongly. President Trump's tariff announcement could strengthen investor risk aversion, potentially accelerating capital outflows not only from Bitcoin but also from altcoins, including XRP. In an environment where market sentiment is dominated by fear, investors tend to move towards safer assets, making highly volatile assets like XRP less attractive. This news is likely to act as a short-term bearish factor for XRP's price. ### 4. Galaxy Digital Raises $460 Million to Convert Texas Bitcoin Mining Facilities into AI Data Centers Overview: Galaxy Digital has completed a significant $460 million fundraising round aimed at converting its former Bitcoin mining facilities in Texas into AI data centers. This move signals an expansion of investment into AI infrastructure and a strategic pivot away from traditional crypto mining operations. Impact on XRP: This news highlights the crypto industry's willingness to invest in infrastructure and strengthen its integration with the AI sector. The growth of AI is driving demand for data processing power, which could indirectly stimulate investment in blockchain technology and related infrastructure. Given that Ripple utilizes AI and machine learning in its cross-border payment solutions, XRP has a degree of synergy with this trend. Large-scale investments in AI infrastructure may increase interest in blockchain technologies, potentially benefiting XRP's use cases and adoption in the medium to long term. However, this is unlikely to translate into direct capital inflows and should be viewed as a factor contributing to broader market maturation. ### 5. Bitcoin ETFs See $2.71 Billion Weekly Inflow During "Uptober," Demonstrating Strong Institutional Demand Overview: US spot Bitcoin ETFs recorded weekly inflows totaling $2.71 billion during "Uptober," underscoring robust institutional demand. This brings the total Assets Under Management (AUM) for Bitcoin ETFs to $158.96 billion, representing approximately 7% of Bitcoin's total market capitalization. Impact on XRP: The sustained inflows into Bitcoin ETFs indicate that institutional investors increasingly recognize Bitcoin as "digital gold" and are incorporating it into their portfolios. This trend enhances the credibility of the overall crypto asset market and may encourage further institutional adoption. As a major altcoin ranked second by market capitalization, XRP stands to benefit from the improved overall market sentiment. Furthermore, as institutional investors diversify their portfolios, there's a possibility they may shift focus from concentrating solely on Bitcoin towards broader diversification into altcoins. The consistent ETF inflows contribute to overall market liquidity, potentially providing a foundation for price appreciation in major altcoins like XRP. ### 6. Bitcoin's Rising Correlation with AI and Warning of 80% Price Drop Overview: Bitcoin's correlation with Nvidia stock has reached its highest level in the past year (0.75). Consequently, some analysts are warning of a potential 80% drop in Bitcoin's price stemming from the risk of an AI bubble collapse. Impact on XRP: The increasing correlation between Bitcoin and Nvidia stock suggests that the cryptocurrency market is significantly influenced by trends in the technology sector, particularly those related to AI. Concerns about an AI bubble bursting could increase selling pressure across all risk assets, potentially leading to severe downturns not only in Bitcoin but also in the altcoin market, including XRP. A decline in AI-related stocks might dampen investment appetite for the crypto market, negatively impacting XRP's price. This news indicates a potential short-term downside risk for XRP. ### 7. Major Banks Consider Issuing G7 Currency-Pegged Stablecoins Overview: Major US banks, including Bank of America, Goldman Sachs, Deutsche Bank, and Citi, are reportedly exploring the issuance of stablecoins pegged to G7 currencies such as the US dollar, Euro, and Japanese Yen. Impact on XRP: The consideration by large financial institutions to issue G7 currency-pegged stablecoins represents a significant move towards stabilizing and popularizing the stablecoin market. This could lead to the availability of safer and more reliable stablecoins, potentially accelerating the mainstream adoption of blockchain-based payments and remittances. XRP, underpinned by Ripple's technology, aims to facilitate cross-border transactions and payments. The proliferation of stablecoins could complement or even compete with XRP's use cases. While stablecoins might serve as alternatives or complementary tools to XRP in Ripple's On-Demand Liquidity (ODL) service, the success of bank-issued stablecoins could also potentially diminish XRP's unique position in the market. ### 8. Texas Bill Allowing El Salvador-Style Bitcoin Reserves May Include Ethereum Overview: Texas has passed a bill allowing the state to hold Bitcoin as part of its strategic reserves. The bill's sponsor has indicated a potential future inclusion of Ethereum as a reserve asset. Impact on XRP: The consideration of Bitcoin as a legal reserve asset by Texas is a symbolic development indicating growing acceptance and integration of cryptocurrencies within the US. The potential expansion to include Ethereum further accelerates the trend of major crypto assets integrating with the traditional financial system. XRP is often compared to Bitcoin and Ethereum in the context of Ripple's cross-border payment solutions. The institutionalization of crypto reserves at the state level in Texas could encourage similar initiatives in other states and potentially at the federal level. If XRP were ever considered for inclusion as a reserve asset by governments or public institutions in the future, its valuation and credibility would likely see a significant boost. Although the current discussion is limited to Ethereum, this trend represents a potential long-term positive factor for XRP. --- ### Overall Summary The cryptocurrency market on October 10, 2025, presents a mixed picture, characterized by positive signs such as increased institutional involvement via ETFs, juxtaposed with negative factors including significant liquidation events, geopolitical risks (US-China tariffs), and concerns over a potential AI bubble collapse. XRP may face short-term downward pressure due to deteriorating market sentiment and risk aversion. However, long-term positive catalysts exist, such as the maturation of the stablecoin market and increasing official acceptance of cryptocurrencies in certain regions. Moving forward, macroeconomic stability, regulatory developments, and the specific progress of XRP's use cases will be crucial determinants of its price trajectory.

Geopolitical risks stemming from escalating US-China tariffs, combined with record cryptocurrency liquidation events, are deteriorating broader market sentiment and exerting downward pressure on XRP. Furthermore, warnings about a potential AI bubble burst could accelerate sell-offs across risk assets. A crucial support level is the recent low of $2.

Short-term (24-48 hours): There's potential for a modest rebound from oversold conditions, but downward pressure persists due to ongoing geopolitical risks. Medium-term (1 week): ETF inflows are expected to provide support, while volatility may increase depending on the news flow. Catalysts: Key economic indicators and regulatory developments.

XRP is currently in a neutral phase, with balanced bullish and bearish factors. Oversold conditions indicated by the RSI suggest a potential short-term bounce; however, geopolitical risks and liquidation events are adding downward pressure. Institutional ETF inflows serve as a long-term tailwind, but regulatory and macroeconomic developments remain key factors. The current price level around $2 presents an opportunity for cautious position building, anticipating buying pressure emerging from oversold conditions. Support levels are identified at $2/$1.80, with a stop-loss set at $1.75 and profit targets at $2.50/$3. This week, pay close attention to economic indicators, regulatory news, and geopolitical developments. Ensure rigorous risk management and maintain flexibility to capture emerging opportunities.