according to the materials of the site - The Bit Journal
This article was first published in The Bit Journal: Contrary to experts' expectations, the launch of the ETF Canary XRP coincided with an overall decline in the cryptocurrency market. What could be the reason?
The price of the XRP token plummeted by 3% in trading on Thursday even after the long-awaited launch of the ETF Canary XRP. On the first day of trading, the fund possibly exchanged shares worth over 58 million dollars, but this led to high volatility in the cryptocurrency market as a whole.
According to a message from Bloomberg's senior ETF analyst Eric Balchunas on social media X, the launch of the ETF Canary XRP (XRPC) has become the most successful debut among all ETFs this year among more than 900 launches. The expert reported that XRPC brought in 26 million dollars just in the first hour of trading.
The previous record for an ETF launch was set by the Solana (BSOL) exchange-traded fund from Bitwise, with trading volume on the first day amounting to about 57 million dollars. Following the record sale, there was an impressive sale of 72 million dollars on the second day. Commenting on the record sale after the launch of the ETF Canary XRP, Balchunas stated:
"These two assets are a real champion, although there is still more than 20 million dollars to go for third place."
Despite the massive sell-off that occurred immediately after the launch of the ETF Canary XRP, users do not understand why the price of the XRP token is falling when there is every reason to believe that the U.S. Securities and Exchange Commission (SEC) will approve several other ETF applications. According to analysts, the main reason for the decline in the price of the XRP token is its correlation with the prices of BTC and other altcoins, whose prices are also falling.
Fear of liquidation is a key factor
For example, Zcash, which experienced a rapid rise, has just fallen by 20% from its all-time high. Other altcoins, such as Litecoin, Solana, and Hedera, whose ETFs are already trading, have also faced crashes in recent days and remain in a deep bearish trend, having dropped more than 20% from recent peaks.
According to analysts, the price of the XRP token may have also fallen due to traders' fears of buying this and other tokens due to a recent massive liquidation, which resulted in more than 1.6 million traders losing their positions after XRP bulls incurred losses of 160 million dollars. After the massive liquidation, activity in the futures market was low, which is notable considering the previous high level of activity in this segment.
The launch of the ETF Canary XRP is seen as a crucial step in the process of cryptocurrency acceptance, as it confirms the value of digital assets in the established financial market, paving the way for their widespread adoption. Although this historic launch indicates that regulated investments in cryptocurrency may soon become the norm and change the landscape of digital assets, the inability of the XRP token price to match market hype should be viewed as a typical strategy failure that occurs around the time of a significant event when investors are waiting for the next catalyst.
$BTC , $XRP , $SOL
#Сryptomarketnews , #MarketRebound
Here we usually publish information about various cryptocurrency projects, opinions of well-known public figures and experts in the financial world, and discuss changes in regulatory legislation in different regions of the planet related to the world of finance.
