XRP Plummets 20% to $1.61 Amid US-China Trade War

XRP, the cryptocurrency, experienced a significant decline, plummeting by 20% to $1.61 within a 24-hour period. This drop marked its lowest point in two months, causing widespread panic among traders and investors. The cryptocurrency market is currently under heavy pressure, with XRP trading at $1.89 at the time of reporting.

The dramatic decrease in XRP's price occurred shortly after a major political announcement. United States President Donald Trump delivered a speech on April 2, revealing stringent trade fees directed at Chinese imports and others. This announcement sparked a negative response from global financial markets, leading to a sharp decrease in the value of both stocks and cryptocurrencies. Trump also threatened additional 50% tariffs on China, exacerbating the situation.

The situation worsened when China retaliated with equal trade restriction tariffs. The escalating trade war between the two economic giants created international anxiety about a potential global economic decline. Numerous economic analysts predict that the United States might encounter a significant economic slowdown during this current year.

During the price crash of XRP, an extreme wave of selling activity followed, with the total amount of XRP sold in a single day exceeding $40 million. The rapid sales matched the financial downturns observed during the 1987 “Black Monday” event, causing fear among investors who are concerned about losing additional funds.

The president continued to defend his decisions, maintaining his position on continuing the trade tariffs during the weekend. According to him, the United States requires fixing its trade deficit before implementing border deregulations. This announcement heightened financial world uncertainties further.

On Monday, the cryptocurrency market experienced profound losses across the board. Bitcoin dropped to $74,560, and Ethereum fell to $1,411. The investment community’s confidence levels plummeted due to these numbers representing the strength of the tariff impact.

The spreading anxiety triggered increased searches for “Black Monday” on Google Trends. The current data indicates that more investors remain concerned about facing a new economic meltdown like those of the past. Investors worry about deteriorating trade situations because they anticipate increasing financial losses in the future.

Another major concern is market volatility. Since the start of April, market prices exhibited excessive volatility, which exceeds their regular movement levels. Market prediction becomes more difficult because prices move with high volatility. Numerous investors decide to sell their assets to reduce their exposure to danger.

Higher risk investments, especially digital currencies, encounter the worst impact during these times. Investors flee from such assets when markets experience doubtful periods. During uncertain times, investors select protected investment choices, which include gold together with government bonds.

XRP stands among the top cryptocurrencies and suffers significant loss because of market conditions. Selling pressure keeps rising. The XRP token faces potential sustained decline according to market prediction until stability emerges in the currency market. Analysts predict that XRP prices might hit a new low below $1.50 in the following days.

The XRP price crash happens directly because of escalating trade conflicts and unpredictable economic guidelines. The situation remains unstable. Digital currencies, including XRP, will struggle because the ongoing trade conflicts and unstable worldwide market conditions continue to persist. Investors should exercise caution by following future political and economic trends.