April 25, 2024

XRP Loses $0.5 State, 572 Million Tokens Moved

XRP whales have been moving more than half a billion of the token around in the last two days. Whale Alert reported development recently as the coin lost some value.

Strong Whale Movements

Over half of the stated number of tokens were moved in tranches of 100 million or more. The transactions happened while XRP lost the $0.5 price value it reached recently.

The crypto tracker, Whale Alert said it noticed huge crypto movements and looked closer. The platform put the number of those huge transactions at thirteen. It said they moved chunks of 22 to 40 million XRP tokens between wallets in leading centralized crypto exchanges.

Whale Alert said the crypto exchanges involved are Bitso, Binance, Bitstamp, and Bittrex, among others. But there were three transactions that stood out because of their huge sizes. One was the movement of 122 million XRP tokens while the other two moved 100 million tokens each.

It looks like investors are in the process of redistributing their holdings. As a matter of fact, they might be selling some of those tokens. They might think it necessary since the token began to go down early in the week.

XRP is the market’s sixth-largest cryptocurrency. It rose above its local high price of $0.547 on the 9th of October. The asset’s price began to decline from that moment on.

As of press time, XRP trades at $0.485 as it lost 4% over the last 24 hours. The reason might not be far from the predicament of the entire crypto market after the US CPI release.

The CPI Effect

The consumer price index for September was released by the US Department of Labor on Thursday. The report showed that the US inflation is at 8.2% high as the price of basic items keeps skyrocketing.

The CPI report also sent a shock wave through all markets. Stocks, bonds, and crypto all declined almost immediately after the release. And they remained down for about 24 hours after. 

Bitcoin and Ethereum led the crypto market to stage a comeback later on Friday. In fact, it was the biggest gain for both cryptocurrencies in several weeks.

The latest CPI report has now diminished the possibility of the Federal Reserve backing down on its hawkish policies. The market currently expects another 75 basis point interest rate increase in November.

Analysts say such a further rate increase might spell further doom for the economy. If crypto still tangles with the stock market, then it will equally suffer. But investors might buy into crypto to hedge against inflation.

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