The crypto market has been struggling in recent days. Bitcoin prices have lost a whopping 7.5% of their value in just seven days. The situation looks even bleaker for altcoins: Ethereum fell by 17% and XRP suffered the biggest blow with a massive 25% drop. What is behind these developments?
Trump starts trade war and puts markets under pressure
A major reason for the falling prices is the trade war that US President Trump started. Trump initially imposed import tariffs of 25% on Mexico and Canada, but these were postponed for a month after negotiations. The tariffs on China, which are at 10%, remain in place.
China has now taken countermeasures, further increasing tensions between the two economic powers. This uncertainty not only weighs on traditional markets, but also has a negative impact on the crypto market.
Why is XRP hit particularly hard?
What is striking is the severe setback suffered by XRP. The Ripple token, which was one of the best performers at the beginning of this year, has lost significant ground in the past week.
A clear reason is difficult to identify, but it seems that many investors are taking their profits. Despite the current losses, Ripple is still 360% higher than it was three months ago. Fearing a further correction, investors are now closing their positions.
Additionally, the hype surrounding the meetings between President Trump and Ripple CEO Brad Garlinghouse seems to have died down. Many investors had hoped that these talks could lead to a quick end to the legal battle with the SEC and that XRP might even be included in the US strategic reserves.
However, this breakthrough has not yet occurred, and the likelihood of positive news material following in the short term seems low. As a result, the euphoria surrounding the altcoin has subsided for the time being, and it remains to be seen whether XRP can regain momentum in the near future.
