Ripple’s cryptocurrency XRP has plummeted by 27% in the past week, following a broader decline in cryptocurrencies triggered by US President Trump’s tariffs on Canada, Mexico, and China. Elevated tariff rates could lead to higher consumer costs, reducing demand for lower-priced goods and pushing inflation upward.
This correction comes after an impressive 600% growth from November 2024 to January 2025, fueled by optimism about more accommodative crypto policies following the presidential election victory. However, XRP’s prospects remain promising, with regulatory decisions from the SEC set to be released later this year.
A potential approval of Ripple’s ETF could serve as a significant catalyst for XRP’s price appreciation, but investors are currently on edge due to the recent tariff announcement. Cryptocurrencies trade 24/7, making them the first market to react to weekend tariffs.
Historically, XRP has been highly volatile, with annual returns ranging from -58% in 2022 to 278% in 2021. In contrast, Trefis High Quality Portfolio stocks have outperformed the S&P 500 over the last four years, providing better returns with less risk. With regulatory decisions on the horizon, XRP’s outlook remains promising despite the recent correction.
Source: https://www.forbes.com/sites/greatspeculations/2025/02/03/whats-happening-with-xrp