XRP (Ripple) has experienced a remarkable rise recently, soaring from a low of $0.48 a month ago to a high of $2.9, an increase of more than five times. Are there deeper market reasons behind this wave of growth?
The story behind XRP’s surge
As a strong coin with close relationship with regulation, XRP has always been regarded as a barometer of US Crypto regulation. Since the long-standing lawsuit between Ripple Labs and the US Securities and Exchange Commission (SEC), XRPs performance has been closely linked to the dynamics of US regulatory policies.
Favorable progress in litigation with the US SEC: There has been new progress in the long-standing litigation between the US SEC and Ripple Labs. The court ruled that XRP does not constitute a security in certain transactions. This ruling has greatly boosted market confidence;
Potential regulatory support: New York State regulators may approve Ripple Labs stablecoin RLUSD, which provides new space and possibilities for Ripples future development;
Technology and infrastructure upgrades: Ripple’s continued technological optimization, especially the improvement of Ripple Ledger (XRPL), and possible participation of US institutions, have increased the fundamental value of XRP;
Market recovery: The overall recovery of the cryptocurrency market has created favorable conditions for XRPs rise.
It is worth mentioning that XRP’s 24-hour spot trading volume once exceeded that of BTC, and among the top five exchanges, South Korea’s Upbit and Bithumb exchanges also occupied important positions.
The “remote viewer” predicted 8 months ago: Was the surge in XRP a foregone conclusion?
This phenomenon reminds me of a prophecy video that I regarded as a god 8 months ago. This video not only accurately predicted the surge in XRP, but also many other eye-catching predictions that came true one by one. For example, he accurately predicted Trumps assassination (even including the details of ear injury and ballistic trajectory). There are two points that sound very scary:
If Trump is re-elected, the United States will face a severe economic crisis similar to the Great Depression of 1929, followed by a gradual recovery;
In the next period of time, the US dollar may collapse, while digital currencies (but it seems not Bitcoin) and gold will experience a surge;
As we all know, the U.S. dollar has long been dominant in the global economy. The dollars position stems from a variety of factors, including its role as an international settlement currency, the United States stable political and economic system, and its role as a global safe-haven asset.
However, the current US dollar system is facing more and more challenges. Debt inflation, accelerated de-dollarization, and the Trump administrations response all indicate that the US dollar system may be heading towards a crisis:
Debt inflation: The U.S. federal debt has reached $34 trillion, with interest payments alone reaching $2.4 billion per day. In the next decade, debt interest payments will exceed $12.9 trillion, which is twice the GDP of Switzerland.
De-dollarization is accelerating: China, Russia, the European Union and other economies are accelerating the de-dollarization process and signing agreements to reduce their reliance on the U.S. dollar. In particular, energy trade between China and Russia has completely departed from the U.S. dollar system, and this trend is spreading around the world.
Huge fiscal expenditure: For this reason, the Trump administration proposed to reduce fiscal expenditure by establishing the Department of Government Efficiency, and Musk was appointed as the head of the department;
Pressure of global economic recession: The high interest rate environment has increased the debt costs of enterprises and residents. The US economy has shown obvious signs of weakness, with non-agricultural employment growth slowing down and the unemployment rate rising.
New variables of Crypto under the US dollar crisis
If the U.S. dollar system is really facing collapse, it may have a huge impact on the global financial system. What is the impact of this situation on the cryptocurrency market?
Although the following analysis is only a personal opinion and does not constitute investment advice, we can still glimpse some potential opportunities and risks from it.
Negative effects:
Stablecoin collapse: The main stablecoins on the market, such as USDT and USDC, are based on the US dollar. If a US dollar crisis breaks out, the anchoring mechanism of these stablecoins may fail, causing their value to plummet, and the stablecoins in the hands of users may become worthless;
Market volatility: The dollar crisis will cause dramatic fluctuations in the global capital market, and the cryptocurrency market is no exception. In the short term, panic selling may exacerbate market instability;
Potential opportunities:
Bitcoins deification: Bitcoin, as digital gold, may become a safe-haven asset for investors when the global financial system is in turmoil. Countries such as Turkey and Argentina have proven that Bitcoin can be used as a store of value when their currencies collapse;
The rise of DeFi: The collapse of the US dollar system may prompt more people to turn to decentralized finance (DeFi). Compared with the inefficiency of the traditional financial system, DeFi provides more efficient and convenient solutions in remittances, lending, etc.;
It’s just that the U.S. dollar is the world’s largest “Too Big To Fail” (too big to fail), so although everyone jokes every year that the U.S. dollar credit system will collapse sooner or later if it continues like this, no one really thinks that this will happen in their lifetime. But for investors, especially those of us whose assets are mostly in extremely liquidity-sensitive assets such as Crypto, even a one in a billion possibility cannot be ignored.
Whether it is cryptocurrencies with cross-border payment attributes such as XRP or other Crypto assets, they may provide alternative solutions when the US dollar system is turbulent. Even Ripple, which is deeply bound to the traditional financial system, may make XRP a bridge asset under special circumstances, further driving up its price.
For investors, this potential trend is not only a risk but also an opportunity.
