XRP (CRYPTO: XRP) is moving higher thanks to some positive-looking developments on the macroeconomic front and a potential coin-specific catalyst trading. The cryptocurrency’s token price was up 2.4% over the previous 24 hours of trading as of 5:45 p.m. ET. Meanwhile, Bitcoin was up 2.7% over the last day, and Ethereum had risen 4.3%.
After comments from President Donald Trump yesterday indicating that tariffs on Chinese products would come down substantially, Reuters reported today that the administration was open to lowering import taxes on the country’s goods from 145% to between 50% and 65%. Adding another positive catalyst, President Trump seemed to back off his criticisms of Federal Reserve Chairman Jerome Powell and said that he did not plan on attempting to fire the leader of the U.S. central bank. XRP’s token price also appears to have gotten a boost from news that Trump Media is planning on moving ahead with plans to launch exchange-traded funds (ETFs) that combine stocks and cryptocurrencies into a tradeable security.
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Despite gains in Tuesday and Wednesday’s trading, XRP’s token price is still down roughly 33% from the high that it reached earlier this year. Even with the big valuation pullback, it’s clear that the cryptocurrency remains a very high-risk investment.
On the other hand, the confirmation that XRP will be part of the United States’ digital-asset reserve program opens the door for a meaningful bullish catalyst over the long haul. With signs that the Securities and Exchange Commission (SEC) may be warming up to ETFs built around or including the XRP token, it’s possible that new funds from Trump Media and other providers of financial products could also support valuation gains.
For long-term investors, I think that XRP stands out as one of the most appealing buys in the crypto space right now. However, investors should understand that macroeconomic volatility continues to be a big risk factor.
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