XRP has experienced a sharp decline in price within the last 24 hours, dropping by 10.16% to $2.20. This significant decrease follows rising concerns over economic instability and investor sentiment.
The recent downturn in XRP comes as uncertainty grows around former President Donald Trump’s proposed tariffs on key imports. This has triggered a wave of selling pressure, contributing to a market-wide slump.
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Trump Tariffs and Their Effect on XRP
According to analysts, fears surrounding Trump’s planned 25% tariffs on Canadian and Mexican goods have fueled uncertainty in the financial markets. While the tariffs were put on hold at first, they resume this Saturday unless the two countries sign a new trade deal.
Trump has emphasized that these tariffs will benefit the U.S. economy, stating, “It will be very good for our country. Our country will be extremely liquid and rich again.”
Although Trump maintains an optimistic view on the stock market, inflation, and global economic volatility have pushed investors away from risk-on instruments like Ripple (XRP).
Investors fear that tariffs might translate to higher production costs, supply chain disruptions, and consequent inflation, effects that have been seen to negatively impact investor confidence in cryptos.
Investor Sentiment and XRP’s Decline
The downturn in the cryptocurrency market can also be attributed to a shift in tone in investors’ sentiments. The key sentiment indicator known as the Fear and Greed Index has fallen from a greed peak of 90 in the first half of this year to 38 now.
XRP and other cryptocurrencies behave poorly during periods of high fear, as investors rotate out of assets with more risk and uncertainty.
Notably, XRP reacts quickly to macroeconomic shifts, and traders have been cautious following policy changes that may alter liquidity and regulatory statuses. This and the recent bearish turn indicate that many investors are afraid to hold XRP amid market fluctuations.
Conclusion
XRP’s decline is closely linked to increasing economic concerns and changing investor sentiment driven by Trump’s tariff policies. XRP holders are apprehensive because of possible trade indecision and potential rises in inflation rates.
Holders of the XRP token will have to turn their attention to incoming policies and the overall economic outlook to forecast its future value.
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