Cryptocurrency values have been falling lately as investors try to gauge geopolitical turmoil, the job market, and the Federal Reserve's independence. Cryptocurrencies are typically more volatile than stocks, so their responses to upheaval lead to even more drastic price swings than equities.
Bitcoin (BTC +2.99%) and XRP (XRP +3.30%) haven't been immune to the market's recent turmoil. Bitcoin's price is down 25%, and XRP has slid 46% during the past six months.
Image source: Getty Images.
Investors are looking for safe assets
Cryptocurrencies generally thrive when economic conditions are good and interest rates are low. For example, during part of the COVID pandemic, when companies were on a hiring spree, the government was sending out stimulus checks, interest rates were low, and many crypto values soared.
But times have changed. The job market has tightened, layoffs reached a four-year high in 2025, and interest rates are much higher than they were just a few years ago. What's more, geopolitical moves by the Trump administration are causing many to feel doubtful about where the U.S. and some of its allies are headed.
Topping all of this off is the fact that President Donald Trump has repeatedly expressed interest in Federal Reserve Chairman Jerome Powell being removed from his position. The Department of Justice recently opened an investigation into Powell that left many concerned about the Federal Reserve's independence.
In short, Bitcoin and XRP investors (and many others) are looking around at all of the unheaval and choosing to put their money into much safer places right now.
CRYPTO: BTC
Key Data Points
Why XRP has dropped more than Bitcoin
XRP is a more speculative investment than Bitcoin despite its ample real-world use cases. XRP's blockchain can help speed up cross-border transactions, and the recent launch of some XRP exchange-traded funds (ETFs) has given the crypto credibility, but it's still not as well-established as Bitcoin. Nor is XRP needed for using the blockchain created by its backer, Ripple. Fiat currencies and stabelcoins can also be used to make transfers on the blockchain, raising doubts about XRP's utility.
As the world's most valuable cryptocurrency, Bitcoin also enjoys a little more value stability than smaller cryptocurrencies. Bitcoin has weathered many significant declines in the past only to see its value come back stronger later, which may encourage some existing Bitcoin investors to hold onto their position rather than sell.
Why buying some Bitcoin rather than XRP may be a smart move
As I mentioned above, Bitcoin's value has proved very resilient over the years. The chart below shows a handful of the biggest Bitcoin sell-offs during the past 10 years, along with the subsequent rebounds:
Chart Source: YCharts.
This doesn't mean Bitcoin's price is guaranteed to go back up, but it does indicate that the crypto can weather some economic setbacks and bounce back. That shows there's a strong appetite for owning Bitcoin, which could help boost its value once investors no longer feel the need to seek safe investments.
Governments across the world have also become far more open to Bitcoin during the past few years, giving the cryptocurrency even more validity. Consider that China and the U.K. have large Bitcoin stockpiles and that the U.S. established a Strategic Bitcoin Reserve last year.
With Bitcoin down about 25% during the past six months, now could be a good time to buy it at a relative discount. When crypto investors begin to feel comfortable with riskier investments again, Bitcoin could regain some ground. Just keep in mind that no one knows how long some of the current volatility will last, and you should be comfortable with Bitcoin's value falling further even if you buy it now.
