Institutional crypto index provider CF BenchmarksHe emphasizes that the main factor behind the recent rise in XRP (Ripple) is the changing interest rate expectations in the USA, rather than developments specific to Ripple. The company’s weekly market report pointed out that the recovery in XRP price is closely linked to macroeconomic conditions.
The report states that XRP is in a cautious position before the inflation data to be announced in the USA on July 29. Investors’ concerns that high inflation may lead the US Federal Reserve to a tighter monetary policy continue to put selling pressure on risky assets.
On the other hand, the fact that consumer and producer inflation data for June were below expectations changed the outlook in the markets. Following data indicating that inflation pressure has eased, the possibility of an interest rate increase in July has decreased to the range of 10-13 percent.
While this change in interest rate expectations supported repurchases in the cryptocurrency market, XRP also regained its previous losses. CF Benchmarks infers that the price movement is not directly driven by XRP Ledger updates, Ripple partnerships, or XRP-specific institutional demand.
Continuation of the Rise May Depend on the Fed
The report reveals that the recovery in XRP is part of the increase in overall risk appetite. Expectations that interest rates will not rise made it easier for investors to turn to higher risk assets such as cryptocurrencies.
For this reason, it has been insistently emphasized that the monetary policy messages of the US Federal Reserve, rather than the news originating from Ripple, may be decisive in the short-term performance of XRP. If inflation rises again or the possibility of an interest rate increase becomes stronger, crypto assets, including XRP, may face sales pressure again.
On the other hand, the fact that the Fed follows a more cautious policy and the risk of an interest rate increase remains low may support the continuation of the recovery in XRP. However, the high rate of loss that has continued since the beginning of the year shows that the rise does not yet indicate a broader and permanent trend transformation.
CF Benchmarks’ evaluation reveals that recent movements in the XRP price should not be read solely through developments in the Ripple ecosystem. According to the report, the short-term direction of XRP will be largely shaped by US inflation data, interest rate expectations and risk appetite in global markets.
