XRP Slumps Amid Rising Oil Prices and Higher Bond Yields
XRP has been down today, and if you're wondering what changed between yesterday and this morning, it's due to a shift in macroeconomic conditions. Oil prices have increased, and bond yields have climbed, which is usually a signal for risk assets to decline.
This phenomenon is not unique to XRP, as the entire crypto market has been sensitive to these changes. However, XRP tends to swing harder than Bitcoin when traders de-risk, making it more volatile in this scenario.
Looking at recent patterns, on June 26, XRP led losses among majors, falling 4.9% in 24 hours to $1.03 amid a tech stock rout and risk-off flows. On July 23, it traded near $1.11 and was down intraday ~2.2% as markets wobbled.
When oil prices rise, inflation expectations increase, which can lead to higher bond yields. This, in turn, pushes up the discount rate on risk assets, making them worth less in the present. Equities feel this effect, but crypto is even more sensitive due to its high beta and lack of cash flows.