XRP's price has taken a significant hit today, driven by a broader market downturn affecting cryptocurrencies. The asset has been in a freefall state since the start of the business week, with its price slipping below $2 for the second time in 24 hours. This decline follows a massive surge in November, fueled by political changes in the U.S. and speculation around the SEC's leadership. However, the recent sell-off appears to be a classic 'sell-the-news' event, as the market adjusts to the anticipated changes. The broader crypto market is also reacting to the upcoming inflation data, with investors paring back long positions in anticipation of potential volatility.
The downturn in XRP is part of a larger trend affecting altcoins like Polkadot, Litecoin, and Cardano, which have also seen double-digit percentage drops. The CoinDesk 20 Index, which tracks the top 20 cryptocurrencies, excluding memecoins and stablecoins, has tumbled nearly 10%. This market-wide sell-off has been exacerbated by Bitcoin's retreat from the $100,000 level, triggering widespread liquidations and a shift in investor sentiment towards a more risk-off approach. "The market anticipates a slight uptick in inflation," noted Ruslan Lienkha, Chief of Markets at Youholder, suggesting that higher-than-expected CPI figures could further intensify the ongoing correction.
XRP's price has fallen by 13.41% today, reaching a low of 1.921641.