Ripple value: why is XRP rising? Elevating $ 28 Billion on Cryptocurrency Rise | Metropolis & Economic system | Funds
Ripple has shot up more than £ 20 billion ($ 28 billion) in the past 24 hours. The market cap for coins rose from £ 25 billion ($ 34.8 billion) yesterday to £ 45.3 billion ($ 62.9 billion).
A single Ripple token is now trading above $ 1.65 after Wednesday’s low of $ 0.89.
The digital currency suffered huge losses over the past week, falling below $ 1 for the first time since December.
Rivals Bitcoin (BTC) and Ethereum (ETH) also crashed after investors were scared of threat from South Korean regulators banning cryptocurrency trading.
The CoinMarketCap currency tracker below shows the current XRP price in real time.
Why is Ripple rising today?
Charles Hater, founder of the CryptoCompare tracker website, said Ripple and its competitors are on the rise today as markets start to correct themselves.
He said, “The market has been a slaughter and many investors step back and breathe a sigh of relief as the price stabilizes.
“The trading volume on the stock exchanges was extremely hectic yesterday.
“The correction was expected and it was a big one.”
Ripple’s dramatic upswing can be attributed to a total crash in the cryptocurrency that was triggered when the South Korean government made proposals that would ban trading.
On Tuesday, Treasury Secretary Kim Dong-yeon reiterated his position that a ban is still a “live option”, adding that government ministries “need to review it very seriously”.
However, FXStreet’s Dhwani Mehta said investors appear to be easing uncertainty out of South Korea. Many see the decline as a “good buying opportunity”.
She said, “The crypto markets appear to have ignored the recent South Korean headline, arguing that the South Korean regulator should consider shutting down all virtual currency exchanges.
Most industry veterans see the sell-off as a good buying opportunity, adding that traders could continue to trade the digital currencies by switching to exchanges in countries where cryptocurrencies are not banned.
Despite today’s impressive performance, Hussein Sayed, chief market strategist at FXTM, warned that it is too early to say whether the market has fully recovered.
Citing Bitcoin, he said, “Most of the people who have recently bought Bitcoin and other cryptocurrencies do not use them for transactions, but hold them in the expectation of profiting from the endlessly rising price.
“Whether the animal spirits have already let go of their grip remains to be seen, and this cannot be determined from a two-day burglary.”
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