Will FOMC Trigger Parabolic QE Rally For XRP Price?

The XRP price narrative is heating up again as markets brace for the pivotal FOMC meeting on December 9-10, 2025. With crypto trading sideways during a tense macro reset, many analysts believe XRP could be one of the biggest beneficiaries if the Federal Reserve confirms a dovish shift. After years of quantitative tightening, shrinking liquidity, and rising volatility in risk assets, traders are now watching for signs of renewed quantitative easing.

Such an event could ignite a powerful, liquidity-driven rally across the crypto market, and XRP, as one of the top-standing cryptos, would benefit massively. With its ETF approval a month ago, regulatory momentum, and a technical setup that some analysts describe as “primed for parabola,” this could happen sooner than everybody thinks.

Will Quantitative Easing Supercharge Crypto?

The upcoming FOMC meeting carries enormous weight, as traders expect the Federal Reserve to deliver a third consecutive rate cut while signaling a retreat from quantitative tightening. After nearly four years of aggressive balance-sheet reduction, the Fed’s assets have fallen to $6,53 trillion, the lowest level since QT began. Over that period, the central banks have erased $2,43 trillion from their balance sheet – more than half of the liquidity injected during the pandemic.

QT is OVER, QE is NEXT 💥

FED balance sheet fell $37B in Nov to $6.53T, the lowest since 2020.

QT has removed $2.43T over 3.5 years, unwinding 51% of pandemic QE.

Treasuries & MBS both dropped again.

Rate cuts in next 3 days.

Liquidity returns next & crypto reacts first. 🚀 pic.twitter.com/B8ZIW1Zu0l

— Money Ape (@TheMoneyApe) December 7, 2025

This dramatic contraction now appears to be slowing. Inflation is cooling, Treasury markets are stabilizing, and economists foresee a shift toward renewed accommodation. A fresh wave of liquidity that could flow into risk assets like crypto.

A return of QE, even in “light” form, typically boosts markets by lowering borrowing costs and increasing the circulation of dollars. Historically, XRP has performed exceptionally well during periods of aggressive liquidity, thanks to its presence across various markets, including payments, institutions, and ETFs. If the FED signals the end of QT and a renewed easing stance, analysts believe the crypto market could ignite almost instantly.

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XRP’s Regulatory Triumph and ETF Explosion Sets the Stage

Few assets have transformed as dramatically as Ripple crypto over the past two years. After a prolonged legal battle with U.S. regulators, XRP not only secured a significant courtroom victory but also achieved a milestone many considered impossible: a U.S.-approved XRP Spot ETF.

👀<4 weeks, and XRP is now the fastest crypto Spot ETF to reach $1B in AUM (since ETH) in the US.

With over 40 crypto ETFs launched this year in the US alone, a few points are obvious to me:

1/ there’s pent up demand for regulated crypto products, and with Vanguard opening up…

— Brad Garlinghouse (@bgarlinghouse) December 8, 2025

Even more impressive, in under four weeks, the XRP ETF crossed $1Bn AUM, making it the fastest-growing crypto ETF in the U.S. after Ethereum. This signals enormous pent-up demand from institutional and retirement-account investors, especially after Vanguard and other major brokerages opened their platforms to crypto ETFs. Also, the recent $500M share sale valued the company at $40Bn.

JUST IN: Ripple’s $500 million share sale, valuing the company at $40 billion, reportedly let select investors including Citadel sell shares back at a preset higher price, guaranteeing a profit – Bloomberg. pic.twitter.com/9zef51ULSn

— Whale Insider (@WhaleInsider) December 8, 2025

The momentum doesn’t stop here. XRP also achieved its first-ever U.S. regulated listing, approved by the CFTC, an event that opens the door to an entirely new area for the asset. XRP is no longer simply a cross-border settlement token. It is now a regulated, institution-friendly digital asset with global liquidity and increasing legitimacy.

🚨BREAKING: $XRP MAKES HISTORY WITH THE FIRST U.S. REGULATED LISTING

This is the moment everyone said would never happen. #XRP just kicked down the door in the regulated arena and the game will never be the same. The dominoes start falling now.

The future is already here. pic.twitter.com/Ac2jQTOOhw

— John Squire (@TheCryptoSquire) December 8, 2025

This combination of ETF inflows, regulatory clarity, and institutional adoption gives XRP unique leverage heading into the FOMC meeting. Liquidity cycles favor assets with real-world use cases, and XRP is better positioned than ever before.

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XRP Price Ready for Parabolic Setup?

On the weekly timeframe, XRP remains structurally bullish despite its corrective trend since the July 2025 all-time high of $3,66. After a month of a downtrend and profit-taking, the price has successfully defended the $2 support zone.

(Source – TradingView)

On the daily chart, the XRP price temporarily broke below the 200 EMA and the SMA band, but RSI and MACD both show a hidden bullish divergence. With FOMC rate cuts expected and liquidity returning to markets, whales load up beforehand to frontrun the curve.

(Source – TradingView)

If that plays out, this could be a deviation below support and expectation that XRP will reclaim the $2.5 price level. If macro winds turn dovish, the XRP could be among the first to ignite in a parabolic move, driven by regulated inflows, ETF strength, and an already-tight technical structure. A December liquidity wave might be the Christmas miracle XRP holders have been waiting for.

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Key Takeaways

How is the FOMC meeting going to affect XRP?

Can XRP price reclaim the $2.5 zone?