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Investors Eye XRP Amid Tariff Uncertainty, Despite Expert Caution

Coin WorldTuesday, Apr 22, 2025 2:14 pm ET

1min read

Investors are navigating uncertain times as the stock market experiences significant price fluctuations due to the unpredictable tariff policies of the U.S. administration. In response to this volatility, many investors are turning to alternative assets, including cryptocurrencies, as a potential hedge against negative macroeconomic developments.

While Bitcoin (BTC) often dominates the conversation due to its scarcity and decentralized nature, Ripple (XRP) is also gaining attention. XRP, developed by Ripple, serves as a substitute for traditional cross-border payment systems like SWIFT. Its network allows for quicker transaction settlements and reduced currency exchange costs, making it a practical tool for businesses and individuals.

However, the current tariff policies and their potential impact on global trade are causing concern among investors. Top investor Adam Spatacco believes that the new tariffs could affect the demand for cross-border payments, which could in turn impact the need for XRP. He explains that if import volumes decrease due to tariffs, the demand for facilitating foreign exchange transactions might also fall, making XRP less of a priority.

On the other hand, Spatacco acknowledges that individuals sending money to family members abroad could continue using XRP’s infrastructure. In fact, the tariffs might drive increased transaction volumes for XRP as more people turn to Ripple’s cost-effective technology to navigate financial uncertainty. He notes that the impact of global trade hiccups and economic uncertainty on XRP could be either a headwind or a tailwind, depending on the specific use case.

Given the current backdrop, Spatacco advises against investing in XRP at the moment. He recognizes that XRP has genuine utility but considers it a highly speculative asset. He points out that its adoption is not as widespread as other payment infrastructures and does not see the ongoing sell-off as an opportunity to buy the dip. For these reasons, he recommends passing on investing in XRP right now.

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