Bitcoin (BTC) is on the rampage again and on Thursday crossed the $100,000 threshold once more. And when the daddy of crypto goes on one of its runs, it often takes other cryptocurrencies along for the ride. That has been the case this time as well, with other coins such as the fourth biggest by market cap, Ripple (XRP), joining the rally.
But according to investor Johnny Rice, this isn’t just a case of XRP catching Bitcoin’s tailwind. Sure, BTC’s momentum helps, but there’s more behind the move.
For one, Trump announced on Thursday that a trade agreement had been reached with the United Kingdom – the first since his all-encompassing tariff measures were introduced in April. The news was met with a positive response across the markets. While few details were disclosed and the deal is not yet finalized, this development suggests that an end to the trade war may be on the horizon.
“The uncertainty sparked by Trump’s tariffs has hit speculative assets like XRP especially hard, so investors were pleased to see positive movement,” Rice commented on the matter.
Meanwhile, Coinbase announced plans to acquire Deribit, the world’s leading cryptocurrency derivatives exchange, in a deal valued at approximately $2.9 billion. The market reacted positively to this too, interpreting the move as a sign of the crypto industry’s “growing maturation,” with XRP and other cryptocurrencies seeing gains in response.
So, crypto investors have reasons to be pleased, and Bitcoin could potentially hit new all-time highs soon, which is likely to have a ripple effect across the crypto space. However, as far as XRP is concerned, Rice is hardly impressed.
“While the positive news across the market helped boost XRP,” Rice said, “I have my doubts.”
Even with XRP’s growing utility and mainstream adoption – traits that set it apart from the flood of meme coins – and the potential tailwind of a spot ETF approval, Rice isn’t sold.
“Regardless,” he concluded, “with a market capitalization of over $130 billion, I believe it is overvalued.” (To watch Rice’s track record, click here)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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