The cryptomarkt is in heavy weather this morning, with almost all the big coins that are firmly in red. Bitcoin (BTC) made a hard fall of 6.8% within just one hour, and altcoins also do not escape the blows. XRP is one of the biggest losers of the day, with a sharp fall of no less than 14.4%.
What causes this free fall?
Cryptomarkt is exhausted
The sentiment in the cryptomarkt is becoming increasingly gloomy, and there are a few clear reasons for that. Firstly, we have been stuck in a consolidation phase for some time. The longer this takes without the bulls breaking through, the greater the chance that the market will eventually drop down.
A good example of this is XRP. The coin fluctuated between $ 2.40 and $ 2.70 throughout February, but now seems on the way to a disappointing monthly closing. The resistance to $ 2.70 turned out to be too strong, and the Bears have since taken control.
Macroeconomic uncertainty
In addition to the downward pressure on Crypto, macro-economic uncertainty also plays a role. For example, Trump attacked different countries, including China, by considerably increasing import rates. Financial markets do not like rising costs at all, which is clearly visible in the rates.
In addition, the Federal Reserve (FED) does not seem to be planning to lower interest rates. The American economy runs better than expected, which is bad news for crypto. Lower interest rates make risky investments more attractive, and without a push in the back, investors remain careful.
Disappointment by not being positive news
Where there was a lot of optimism around XRP before, this now seems to be slowly passing away. For example, rumors were circulating about a possible approval of an XRP Spot Exchange Traded Fund (ETF). Although the Securities and Exchange Commission (SEC) has recognized various applications, it remains quiet. The deadline for a decision is only in October, which means that investors will remain in uncertainty for the time being.
The rumor that XRP might also be included in the strategic reserves of the US initially caused a lot of enthusiasm. In the meantime, this enthusiasm has completely subsided, and the rumor does not seem to become a reality.
In addition, many XRP investors hoped that under a new Trump government, the lawsuit between Ripple and the SEC would result in a settlement. But here too it remains remarkably quiet, which contributes to the negative mood.
The Bullish sentiment ebts
The once strong bullish hype around XRP is clearly what matched. Without positive news and with increasing macro-economic pressure, there seems to be a good chance that the course will fall even further. Investors do well to stay careful and keep a close eye on market developments.
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Source: https://newsbit.nl/waarom-crasht-de-xrp-koers-vandaag-dit-zijn-de-belangrijkste-redenen/
