With the total market cap of all cryptocurrencies now exceeding $1 trillion, Ripple‘s price is also rising as it recovers from a Christmas week crash.
About Ripple (XRP)
Ripple is a real time gross settlement system (RTGS) developed by the Ripple company. It’s also known as the Ripple Transaction Protocol (RTXP) or Ripple protocol. It can trace the roots of its to 2004 when a web developer called Ryan Fugger had the idea to make a monetary system that was decentralised and could effectively allow individuals to create the own money of theirs.
Let’s look at some of the factors that influence XRP and how you can work with those factors to get the best bargain. XRP is actually a favorite of crypto traders, perhaps since it offers low cost and reliable liquidity.
Ripple In the News
The Ripple XRP news aggregators are overflowing with stories as of late. Ripple is actually entwined with government and central banks central banks, global economics, stock markets, international trade and commodity prices , government spending, and inflation.
Last year, a number of high-profile investors, led by the famed Paul Tudor Jones, began to name bitcoin as an emerging inflation hedge, using to it protect against what they see as the damage being done to the stability of the dollar by unprecedented government spending and money printing. This support helped institutional investors and Wall Street giants soften their sceptical view of cryptocurrencies and bitcoin.
Ripple has publicly decried the SEC charges and has an initial hearing scheduled for later next month.
Longer term, the market sentiment towards Ripple may be bearish as investors become weary of its legal prospects. It may then be predicted that short sellers will emerge with their short positions, driving up the spread even further. The market sentiment remains bullish at the prices and this point should begin to reverse. This is referred to as the “flip”.
Nonetheless, some cryptocurrencies don’t have strong fundamentals and therefore need further support to survive. Also some national currencies including those from emerging economies like the Mexico and Peru, which are actually experiencing weak demand from wealthy investors. The governments in these countries are actually attempting to support the currencies by creating exchanges or even futures markets to provide liquidity and allow for secure trading.
While the bull market in cryptocurrencies will will begin to exist, Ripple market participants must be careful to look beyond the short term price predictions and consider the long term potential of the currencies involved.