Wall Street sentiment can change on a dime, but in the world of cryptocurrencies, it’s even more unpredictable. Less than two months ago, Bitcoin (BTC) was riding high, hitting new highs as Trump and his new crypto-friendly administration took hold of the reins.
Fast forward to mid-March and the space has gone through one of its periodic meltdowns with avid market watchers wondering if the traditional post-halving bull run is already over and whether the next crypto winter has made an early unwelcome return.
The downturn appears to be a classic case of ‘sell the news.’ Trump’s recent announcement of a Strategic Crypto Reserve initially sent tokens soaring, but the excitement was fleeting. Investors quickly pivoted to risk-off mode, rattled by the prospect of trade wars and fears of a recession.
Ripple (XRP) has been on a particularly wild ride. The token was one of the biggest post-election winners, skyrocketing 552% in just six weeks on hopes of regulatory relief – critical for Ripple as it battles an ongoing SEC lawsuit over claims that XRP was sold as an unregistered security. But the rally has since lost steam, with XRP now sitting 35% below its January peak.
So, where to from here? Looking at the year ahead, top investor Chris Neiger thinks there are two catalysts that could “be a boon to the coin’s value.”
One involves the court battle, with investors hoping the SEC might drop its case against Ripple Labs. While acting SEC Chair Mark Uyed has not addressed the issue, the agency’s recent retreat from cases against Coinbase, Robinhood, and Uniswap bodes well. “Dropping the charges against XRP could clearly be a catalyst for the digital token and could likely cause more investors who are waiting on the sidelines to buy the crypto,” Neiger opined.
Then there’s that executive order to establish a federal cryptocurrency reserve. While it is focused on Bitcoin, and XRP has only been included in a digital asset stockpile (i.e., as it stands the US won’t be purchasing it or other cryptos), should anything change on that front, Neiger thinks it’s “easy to imagine the coin’s value getting a boost.”
Those are the positive catalysts to look out for although Neiger also warns that overall macro uncertainty could drive prices lower, as investors flee to safer havens.
“That said,” the 5-star investor summed up, “XRP could still rise higher over the next year if the crypto regulatory environment continues to soften and if the coin gains further institutional approval after being added to the strategic reserve. Just keep in mind that if you own XRP it’s likely to be a wild ride.” (To watch Neiger’s track record, click here)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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