The encryption market is disrupted: Why did the prices of XRP, Shiba Inu and Pepe decrease?
The encryption market collapses, as the total market value in the industry decreased from more than $ 3.5 trillion in November to $ 2.58 trillion. Bitcoin and most Altcoins, such as Shiba Inu, Pepe, XRP and PI, have declined with double numbers of their highest levels in 2024.
The price of XRP has decreased by 16 % in the past seven days trading at $ 2. Bitcoin has decreased to $ 79,000, while Shiba Inu, Pepe and PI have fell by more than 20 % in the past few days. Therefore, let’s explore the reason for the disruption of the cryptocurrency market and whether it will return.
Buy rumors and sell news
Bitcoin and most cryptocurrencies are floundered due to a scenario known as Buy The Rumor, and selling news.
This is the position in which investors buy assets before a big event and then sell them when that happens.
In this case, most cryptocurrencies jumped after Donald Trump’s victory in November last year, and then crashed after his inauguration.
Recently, these coins have risen after Trump said he would sign an executive order to create encryption reserves and hold a summit in this industry. Then it was shattered after these events occurred.
this Buy rumors and sell news The event happened several times before. For example, ETHEREUM jumped in August and September last year when speculation rose about ETF approval and then shattered after it occurred.
Macro news hurts the encryption market
Macro events are the other main causes that make the encryption market collapse. The most important macro events this year was Donald Trump’s decision to impose a comprehensive tariff on imports from most countries, including allies such as Canada and Mexico.
A 25 % tariff is very high and can harm all companies in the United States. For example, if the iPhone cost $ 1,000, its price will rise to $ 1250 if the new definitions are applied. The car that sells at $ 50,000 will start going for $ 62,500 after the tariffs.
Trump’s goal is to make countries put their business in the United States and avoid definitions. However, the challenge is that even companies in the United States pay tariffs when importing raw materials.
Also, it will be the cheapest for companies to maintain their operations in other countries and high prices.
This total event also explains the reason for the stock market in the past two months. The Nasdaq 100 has decreased by more than 14 % of its highest level ever. Likewise, Russell 2000 and S&P 500 indicators decreased, as the net value of Elon Musk decreased by $ 132 billion this year to $ 301 billion.
Read more: Wall Street legend says that American stocks are in a bubble: 3 NASDAQ shares for sale
Will Shayba Eno, Baby, Chipa Eno, XRP and other altcoins bounce?
So, will the encryption market return? There are opportunities to restore these cryptocurrencies in the next few months.
For anyone, this is not the first time that these assets are entered into the bear market. Only last year, Pepe and other Altcoins fell by more than 70 % of their highest levels in March to their lowest points in August. Then they bounced again in the fourth quarter.
What the encryption market needs is a simple incentive, and it will start to go equivalent. For example, most of these assets will begin to rise if the Federal Reserve provides a reduction in the emergency rate or when Trump ends the definitions.
The collapse of the post -encryption market: Why did the prices of XRP, Shiba Inu and Pepe decrease? First appeared on Invezz
