By Solomon Odunayo
A supposed Ripple’s XRP enthusiast and analyst, identified on Twitter as Curtis has recently averred that XRP could further drop to sub 10 cents ($0.1), considering the fact that the cryptocurrency market is currently highly correlated with risk-on assets.
Curtis shared this assertion a couple of hours ago, after a close look at the present situation in the crypto market, and how digital currencies align with conventional assets in the current financial regression.
In his tweet, he pointed out that the present market conditions in traditional finance are terrible. He added that further losses should be expected.
Conclusively, he said seeing XRP priced at a sub 10 Cents region should not be surprising, as such could play out anytime soon.
“The CryptoCurrency market is currently highly correlated with risk-on assets ie; Equities etc… The current market conditions in traditional finance are absolutely terrible with further losses to be expected… Do not be surprised to see a sub 10c XRP in this environment…”
The CryptoCurrency market is currently highly correlated with risk on assets ie; Equities etc…
The current market conditions in traditional finance are absolutely terrible with further losses to be expected…
Do not be surprised to see a sub 10c #XRP in this environment…
— Curtis_XRP (@Curtis_XRP) March 12, 2020
The Effect of COVID19 on Crypto and Stock Markets
Initially, the emergence of COVID19 in Wuhan China had little or no effect on the global economy. Back then, it was equally treated as the epidemic battling with a percentage of the world’s population.
It became a big deal after the highly contagious and pathogenic virus started spreading beyond the border of China into other countries.
Afterward, the virus crept into the most powerful country in the world, United States, then the effect started getting obvious on the economy globally.
The value of many assets in the stock and cryptocurrency market started trending downward. Despite the obvious effect, the US government tried to downplay the effect of coronavirus as a measure not to experience further economic regression.
However, the World Health Organization recently bowed to pressure and made the declaration that the spread of COVID19 is a pandemic (prevalent disease).
Over the past 24 hours, the effect of the declaration has been obvious on the price of cryptocurrencies in the market. Bitcoin (BTC), the largest cryptocurrency by market capitalization is now priced below $6,500 level.
Presently, the situation has greatly affected XRP and others. At press time, Ripple’s XRP is trading at $0.168615, with an 18.83% price downtrend in the last 24 hours.