Bitcoin Drops 30% Amid Trade Tensions, XRP Gains Momentum

Generated by AI AgentCoin World
Friday, Mar 21, 2025 1:48 pm ET1min read
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In the face of escalating trade tensions and broader economic uncertainty, the cryptocurrency market has experienced significant volatility. Recent policy shifts, such as tariff announcements, have led to substantial losses in crypto valuations, leaving investors cautious yet opportunistic. Amidst this volatility, many are actively seeking cryptocurrencies with strong growth potential to navigate the market uncertainty.

Against this backdrop, an analysis of market trends and consultation with ChatGPT-4o identified two cryptocurrencies worth adding to portfolios before March ends: Bitcoin (BTC) and XRP.

Bitcoin started 2025 on a strong note, reaching an all-time high above $108,000 in January, driven by optimism surrounding President Trump’s pro-crypto stance. However, the momentum was short-lived as new tariffs on China, Canada, and Mexico on March 4 sent shockwaves through financial markets, reversing earlier gains. Currently, Bitcoin is trading around $83,950, nearly 30% off its peak.

Despite the recent downturn, ChatGPT suggests that Bitcoin’s long-term potential remains intact. The model highlights several key factors suggesting the correction could present a buying opportunity. Among them is Bitcoin’s inclusion in the U.S. government’s newly established ‘Crypto Strategic Reserve,’ a move that signals strong institutional backing and may pave the way for broader institutional adoption. Additionally, corporate moves like Metaplanet’s significant increase in Bitcoin holdings, reporting a 53.2% yield so far in 2025, indicate growing corporate confidence in Bitcoin’s value proposition.

While Bitcoin is currently trading in bear territory following the sharp correction, the broader outlook remains bullish. According to ChatGPT, the asset is still firmly in an uptrend, supported by its record high earlier this year and continued institutional interest.

XRP was ChatGPT’s second pick for March, backed by a series of favorable developments supporting its long-term outlook. XRP’s established role in facilitating cross-border transactions, coupled with its growing appeal to institutional investors, positions the cryptocurrency for significant upside in the months ahead. Another key factor driving this positive sentiment is the end of Ripple’s four-year legal battle with the U.S. SEC, one of the biggest bearish overhangs that had weighed on XRP since the lawsuit was first filed in 2021. At press time, XRP is trading at $2.39.

ChatGPT also points to anticipation around a possible XRP ETF, with Polymarket data showing an 84% chance of approval. According to the analyst's forecast, such an ETF could attract between $3 billion to $6 billion in inflows within the first year, offering further support for price growth. With these factors in play, ChatGPT believes XRP has the momentum to continue its upward trajectory throughout 2025.

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