XRP Clears $1.40 on $3.3 Billion Short Squeeze and CLARITY Act Push
$XRP ($1.50, +52% over four days). A $3.3 billion short squeeze and two macro catalysts lifted XRP from its August 17 cycle low of $0.9877 to a three-month high, adding more than $32 billion in market cap. The September…
Key takeaways
- XRP rose 52% over four days, clearing $1.40 and reaching a three-month high after a $3.3 billion short squeeze lifted it from its August 17 cycle low of $0.9877.
- The rally added more than $32 billion in market cap, moving XRP from roughly $62 billion to $94.2 billion at about 63 billion tokens in circulating supply.
- Two macro catalysts drove the move: Treasury Secretary Scott Bessent's August 19 plan to double bond buybacks to at least $4 billion per operation, and President Trump's August 20 call for Congress to pass the CLARITY Act.
- The CLARITY Act, facing a September 15 Senate cloture vote, would classify XRP and most digital assets as commodities under federal law.
- XRP's 24-hour trading volume hit $10.39 billion on August 21 and stands at $12.73 billion today, while XRP ETFs added more than $39.78 million over the four days.
$XRP ($1.50, +52% over four days). A $3.3 billion short squeeze and two macro catalysts lifted XRP from its August 17 cycle low of $0.9877 to a three-month high, adding more than $32 billion in market cap. The September 15 Senate cloture vote on the CLARITY Act is the next level to watch.
The four catalysts
XRP had been pinned between $1.00 and $1.18 for most of August, unable to close above that band. The tape needed a macro unlock, and it got two in 48 hours.
On August 19, Treasury Secretary Scott Bessent announced he would double the pace of long-term bond buybacks from $2 billion to at least $4 billion per operation, starting September 9. The 30-year Treasury yield, which had hit 5.34%, a 19-year high, fell to 5.19% within hours. Lower yields freed capital to rotate into risk assets and XRP started moving.
A day later, President Trump publicly called on Congress to pass the CLARITY Act while attending an event with Ripple CEO Brad Garlinghouse. Senate Majority Leader John Thune had already filed a cloture motion to force a floor vote, scheduled for September 15. The bill would classify XRP and most digital assets as commodities under federal law. Prediction markets cut the odds they assigned to another delay.
Short sellers then closed positions mechanically as the price moved against them. Traders short XRP borrow the coin and sell it, betting on a lower price; when it rallies instead, the exchange closes the position automatically and buys the coin at market. Across August 19-21, $3.3 billion in shorts liquidated that way.
Volume and supply
The move had volume to back it. XRP's 24-hour trading volume hit $10.39 billion on August 21, the session that cleared $1.40, a level that had rejected every rebound since May. Volume stands at $12.73 billion today. At a circulating supply of about 63 billion tokens, market cap moved from roughly $62 billion to $94.2 billion.
Supply shrinkage amplified the run. Crypto analyst Ali Martinez noted wallets holding between 1 million and 10 million XRP added roughly 300 million tokens, worth close to $400 million, in the 96 hours before August 21. XRP ETFs added more than $39.78 million across the four days, including a single-day inflow above $18 million on August 21, the largest one-day total in two months.
What to watch
The setup into September 15 puts $1.29 as the floor, with supply thin and the short squeeze played out. A block of buyers who entered near $1.48 on the way down now sits in profit, which builds a wall of selling close to current levels. The setup changes if Democrats vote down cloture or if a hot inflation print pushes the 30-year yield back above 5.3%; in either case, the price could pull back to $1.20. The cloture print on September 15 is the next window.