XRP leads the decline in cryptocurrencies, falling by 5.2%. Are bears in control? 🔥🔥🔥
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XRP's plunge triggers turmoil in the cryptocurrency market
XRP dropped 5.2% in 24 hours, causing the entire cryptocurrency market to fall, including Dogecoin, Solana, Ethereum, and Binance Coin, which also dropped by 2%. The overall cryptocurrency market capitalization declined by 3%, with high-risk investments facing difficulties. The strengthening dollar makes traditional assets more attractive, further exacerbating market sluggishness.
Market confidence hit, dollar strengthens
Investor confidence is shaken, leading to a sell-off of risk assets, which has caused the dollar to strengthen. Global markets are also not performing well, with Asian stock markets down, and U.S. stock index futures indicating potential further declines. The dollar index has been climbing, while Bitcoin and other cryptocurrencies have moved in the opposite direction to the dollar.
U.S. stock market performs poorly, historic "Santa Claus rally" fails to appear
On Friday, the U.S. stock market performed poorly, as investors reduced risk. The Asia-Pacific index reversed five days of gains, and U.S. stock index futures also performed poorly. The historically observed "Santa Claus rally" did not occur, instead resembling a "Santa Claus crash," marking the third consecutive decline for the U.S. stock market during the holiday trading period.
XRP's regulatory victory and future uncertainty
Despite XRP's regulatory victory, such as Ripple winning the lawsuit against the SEC, it still struggles to find its place in the cryptocurrency ecosystem. Although companies are preparing for an XRP ETF, skeptics still doubt the token's growth prospects. Even though XRP is suitable for cross-border payments, it has not yet translated into meaningful commercial use cases.
As the dollar surges, incoming U.S. President Trump is set to take office, with his economic policies expected to further strengthen the dollar, leaving cryptocurrencies to fend for themselves in a hostile environment.
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