XRP has achieved significant milestones in 2025 while Bitcoin has fallen short of the expectations of its supporters who were hoping for a major rally. Following the conclusion of the legal battle between the SEC and Ripple, which ended in Ripple’s favor, XRP soared to a peak of $3.40 in January, bringing rewards to long-term holders.
While Bitcoin (BTC) seems to be losing its status as a safe haven during geopolitical crises and Ethereum is exhibiting a downward trend, XRP is emerging as a notable contender against Bitcoin’s “digital Gold” narrative as we progress through 2025.
Overview of the Ripple Legal Battle
Ripple, the payment remittance company that faced the U.S. Securities and Exchange Commission (SEC) for nearly five years, ultimately secured a victory with a settlement of $50 million, down from the SEC’s initial demand of $125 million. This settlement brought much-needed legal clarity for XRP, the cryptocurrency associated with the XRP Ledger, enabling its free trading on various exchange platforms.
The formalities have been completed – marking what should be my final update on the SEC vs. Ripple case ever… Last week, the SEC decided to withdraw its appeal unconditionally. Ripple has agreed to forgo its cross-appeal, while the SEC retains $50 million from the initial $125 million penalty.
The protracted legal battle hampered XRP’s progress for years, resulting in its removal from major exchanges, diminished business partnerships for Ripple, and a downturn in demand among users.
With the conclusion of the SEC vs. Ripple lawsuit, we are witnessing a rapid uptick in institutional adoption, a renewed enthusiasm from retail traders, and a resurgence of listings on key exchange platforms throughout the ecosystem.
XRP Gains Trust and Demand Post-Lawsuit
A variety of institutions, including Coinbase Derivatives, Bitnomial, and ProShares, have initiated applications for ETFs connected to XRP. On April 21, Coinbase Derivatives launched XRP futures contracts under the oversight of the CFTC, presenting a capital-efficient option for investors seeking exposure to XRP.
In March 2025, Bitnomial unveiled physically-settled XRP futures contracts, distinguishing them from cash-settled products. ProShares has also amended its filing to target an April 30 launch date for its XRP futures-focused exchange-traded product. Furthermore, companies like Grayscale, Bitwise, 21Shares, CoinShares, and Canary Capital have submitted applications for spot XRP ETFs, which reflects increasing institutional confidence in XRP following the lawsuit outcome.
The Decline of Bitcoin’s ‘Digital Gold’ Status
Two significant developments are influencing the possibility of XRP becoming the go-to “digital Gold”: the waning perception of Bitcoin as an alternative to gold, and XRP’s increasing value and demand among institutional investors and traders.
Although Bitcoin recently climbed above $91,000 for the first time in 45 days, XRP has shown better performance, boasting year-to-date gains of 3.71% and an impressive six-month increase of over 300%, as per TradingView data.
The correlation between Bitcoin’s price and U.S. equities, alongside gold’s surge to new all-time highs, is defining the present market conditions. Analysts at JP Morgan have pointed out mounting pressure on Bitcoin’s status as digital gold in this climate.
“Bitcoin’s volatility and correlation to equities raise valid concerns about its standing as ‘digital gold.’ Looking ahead, we anticipate gold emerging as the prime beneficiary in the debasement trade.”
The debasement trade—favoring demand for assets that resist inflation, like gold and Bitcoin—appears to favor gold at present. As investors lean towards a risk-averse strategy, capital is flowing away from equities and cryptocurrencies toward gold.
Bitcoin’s volatility aligns it closely with technology stocks, posing similar risk-reward profiles for investors. JP Morgan analysts suggest that BTC has a volatility-adjusted valuation of $71,000.
Is XRP the Future of Digital Gold?
In a recent evaluation, XRP attracted $37.7 million in weekly inflows among global crypto funds, leading all other assets. In contrast, Ethereum and Bitcoin exchange-traded products saw outflows of $26.7 million and $6 million, respectively, according to CoinShares.
XRP has emerged as the third-best-performing cryptocurrency this year, boasting $214 million in net inflows. The combination of solid investor returns, ETF applications, and renewed demand bolsters the narrative that XRP could serve as a viable alternative to “digital gold.”
Moreover, U.S. President Donald Trump’s suggestion of incorporating XRP into a federal crypto reserve could further enhance this perspective, particularly as Bitcoin struggles to prove its utility for everyday users outside of the crypto domain.
XRP Price Predictions
The daily price chart for XRP/USDT indicates two critical momentum indicators, the RSI and MACD, which support a bullish outlook for the second-largest altcoin. XRP has the potential to rally 16% to re-approach major resistance at $2.50.
This resistance coincides with the 50% Fibonacci retracement of the slump from the January 2025 peak of $3.40 to the April 7 low of $1.61. A potential 40% upward movement could see XRP eyeing the psychologically significant $3 mark.
The RSI is currently on the rise, positioned at 52, above the neutral mark of 50. The MACD also supports a bullish outlook, characterized by rising green histogram bars exceeding the neutral level, indicating robust strength in XRP’s price amidst a general recovery in the broader crypto market.
In the event of a downturn or rapid price correction, XRP could see another test of support at $2 before any further declines.
Disclaimer: This article does not offer investment advice. The contents and materials included on this page are intended solely for educational purposes.
