XRP Price Drops: CME Futures Denial and Market Downturn
XRP Price Slumps Amidst CME Denial and Market Correction
XRP experienced a significant price drop, falling nearly 5% in the last 24 hours. This decline follows a period where XRP's market capitalization briefly surpassed that of Goldman Sachs. Since then, however, its market cap has plummeted by approximately $20 billion, mirroring a broader downturn in the cryptocurrency market.
The decline was exacerbated by the Chicago Mercantile Exchange (CME)'s denial of plans to list XRP futures contracts. Earlier, leaked screenshots suggesting an imminent February 10th launch fueled speculation, but the CME clarified that these were erroneous beta pages.
CME's Role and Market Sentiment
The CME's decision carries significant weight, as it's often viewed as a key indicator of institutional interest in cryptocurrencies. The initial rumors created positive sentiment, but the subsequent denial led to a sell-off.
Regulatory Expectations and XRP's Future
XRP's price surge late last year was largely driven by anticipation of a more favorable regulatory environment under the incoming administration. Potential policy changes, including a strategic Bitcoin reserve and the appointment of a crypto-friendly SEC chair, boosted investor confidence.
The ongoing legal battle between Ripple and the SEC remains a significant factor. However, the potential for a spot XRP ETF continues to fuel speculation. Several firms have filed applications, and Ripple's CEO remains optimistic about its eventual approval.
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