XRP Price Down 30%: Is It Time To Buy?

SYMBOL - 23 April 2024, Baden-Württemberg, Rottweil: The logo of the cryptocurrency Ripple (XRP) can ... [+] be seen on the CoinMarcetCap trading platform. Photo: Silas Stein/dpa (Photo by Silas Stein/picture alliance via Getty Images)
dpa/picture alliance via Getty Images
Despite the optimism surrounding Trump’s rise to the U.S. presidency, the cryptocurrency market has not experienced the anticipated positive effects. Instead of sustained growth, major cryptocurrencies have declined from their December-January peaks. Bitcoin has fallen 13% from its recent high, Ethereum has dropped by 37%, and Ripple has decreased by 30%.
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The recent downturn in cryptocurrency prices can be attributed to several factors linked to President Trump’s economic and foreign policies. His decision to impose tariffs on Canada, Mexico, and China has fueled market concerns. These tariffs could reduce the availability of lower-priced goods, potentially driving up inflation. As a result, the Federal Reserve may face challenges in implementing interest rate cuts.
Geopolitical tensions in Eastern Europe have further compounded market uncertainty. President Trump has proposed securing mineral rights in Ukraine—worth approximately $500 billion—in exchange for U.S. aid. Meanwhile, President Zelensky remains firm on Ukraine’s NATO aspirations and seeks more favorable terms for the mineral rights deal. [1]
In contrast, Russian President Putin has emphasized the need to build trust with the U.S. and advocated for European involvement in Ukraine peace negotiations. [2] Given these circumstances, a swift resolution to the conflict appears unlikely, prolonging global economic instability and negatively impacting cryptocurrency markets.
These factors contribute to increased economic uncertainty and a diminished risk appetite among investors, creating a challenging environment for cryptocurrencies. Looking back at digital asset performance during the 2022 economic downturn offers relevant insights.