Today cryptocurrency XRP fell 6% as tariff saber-rattling between China and the United States sent a shot of volatility through the market. This follows on the most recent October 10th flash crash just a few days ago that rocked all of the entire crypto markets and wiped out billions in assets. Some estimates have the wipeout at $19b in a single day, but with reports of individual traders losing $200m the losses could be even higher.
XRP’s Sudden Dive
Despite its reputation as a stable, ‘blue-chip’ crypto, XRP is not free from this volatility. The coin is priced at $2.49 today, down more than 20% in just the last month. It’s the 5th largest crypto by market cap, with a valuation of $148b, so a 20% crash represents ~$37b is destroyed valued in just the past month.
However, some perspective is needed. Zooming out a year and XRP has increased 367%. So the magnitude of this ‘crash’ and the reputations as a stable coin needs to be checked.
The Three Things That Matter Today
First, today and the most recent flash crash are stark reminders for how volatile cryptocurrencies like XRP can be. Owning them on leverage only magnifies this movement, and risk.
Second, as insulated as cryptocurrencies seem to be from macro markets and fiat currencies like the USD and Chinese Yuan, economic tremors are indifferent and can affect all asset classes.
Third, and most importantly, cryptos like XRP can still make traders, investors, and everyone in between a lot of money when held responsibly and patiently for the long run.
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