XRP Price Drops 6.75% to $2.19 Following Federal Reserve Rate Cut

The cryptocurrency market faced significant turbulence following the Federal Reserve's latest decision to cut interest rates by 0.25%. This announcement triggered sharp declines across major assets. XRP, in particular, saw its value drop by 6.75%, currently trading at $2.19.

The Federal Reserve's recent decision to cut interest rates by 0.25% has had a significant impact on the cryptocurrency market, leading to sharp declines across major assets.

Among these assets, XRP has seen a notable decrease in value. At the time of writing, XRP is trading at $2.19, after experiencing a 6.75% drop from its previous value.

The Federal Reserve's decision to stimulate economic growth by cutting interest rates was met with unexpected market volatility.

Both traditional and crypto markets experienced steep declines, with the U.S. stock market losing $1.5 trillion. In the cryptocurrency market, there were liquidations amounting to $310 million within a day, with XRP being among the most affected assets.

In a recent development, Jerome Powell, Chair of the Federal Reserve, highlighted the central bank's current stance on cryptocurrency. According to Powell, the Federal Reserve has no plans to hold Bitcoin or alter its policies to accommodate such assets. These comments contributed to negative market sentiment, raising concerns about regulatory uncertainty in the crypto space.

Regarding XRP's performance amid the market decline, the price collapse wiped out gains made following the recent launch of Ripple's RLUSD stablecoin. After peaking at $2.72, XRP retraced to $2.23, indicating a 17% decline within 24 hours. The asset experienced a slight recovery but currently trades precariously, with its trading value hovering around $2.19.

Despite the recent downturn, cryptocurrency analyst Oscar Ramos suggests that the dip could present an opportunity for accumulation. In a recent video, Ramos highlighted the recurring nature of price corrections in the crypto market and encouraged investors to adopt long-term strategies rather than reacting to short-term fluctuations.

Ramos points to a similar price drop on December 10, when the token declined following Ripple CEO Brad Garlinghouse's interview on 60 Minutes. According to Ramos, the asset eventually rebounded.

The analyst disclosed that he increased his XRP holdings during the latest drop, expressing optimism about the asset's future. He highlighted the benefits of dollar-cost averaging and advised investors to remain focused on the long-term potential of the token rather than making decisions based on market panic.

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Ramos also highlighted the recent launch of Ripple's RLUSD stablecoin as a potential driver of XRP's long-term value. Monica Long, Ripple's President, described RLUSD as part of Ripple's commitment to regulatory-compliant stablecoin solutions. She noted the increasing demand for such assets and projected that the market for stablecoins could grow to $3 trillion by 2028.

Ripple's diversification efforts, including its focus on stablecoins, are seen by some analysts as a promising strategy for supporting the asset's future growth.

The token's struggles are part of a larger downturn across the cryptocurrency market. Bitcoin fell from $108,000 to $96,762, while Ethereum faced significant liquidations, including a $4.7 million transaction in ETH perpetual futures on Binance.

Ramos urged investors to remain calm in the face of widespread market uncertainty. While fear dominated the market following the Federal Reserve's announcement, he emphasized the importance of adhering to long-term investment plans rather than making emotionally driven decisions. While the market remains unstable, Ramos and other analysts see opportunities for investors willing to adopt disciplined strategies.

This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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