Money flows back into Ripple (XRP)…Continuous rise as oil prices and interest rates fall simultaneously

▲ Ripple (XRP), Dollar (USD) ©Go Dasol

XRP (Ripple) continues its upward trend, jumping over 5% in a single day. The simultaneous decline in international oil prices and U.S. Treasury yields has revived investor sentiment for risk assets, and positive news regarding the regulatory environment has further fueled XRP's rebound.

According to investment specialized media The Motley Fool on September 22 (local time), XRP rose by 5.5% over the past 24 hours as of 1:41 PM U.S. Eastern Time on the 21st. The price at the time was approximately $1.51, moving within a range of $1.43 to $1.57 during the day. On the same day, buying interest flowed into risk assets across the board in the New York stock market, with the S&P 500 index rising by 1.4% and the Nasdaq Composite index by 2%.

The key background for this rise was cited as the decline in international oil prices and U.S. Treasury yields. Last week, Brent crude, the benchmark for international oil prices, surged past $109 per barrel, reaching its highest level in several months. Concerns grew that the sharp rise in oil prices could stimulate already high inflation, leading the U.S. 10-year Treasury yield to also climb to 5.04%.

However, positive signals from the Middle East on Monday caused Brent crude to fall below $100 per barrel, and the U.S. 10-year Treasury yield also dropped to 4.96%. The Motley Fool explained that XRP reacts sensitively to movements in the bond market. Generally, when interest rates rise, investors tend to move away from risk assets like cryptocurrencies, whereas when interest rates fall, there is greater potential for funds to flow back into risk assets.

Coupled with changes in the macroeconomic environment and positive regulatory news released late last week, XRP continued its upward trend for several days. However, the media pointed out that while there are many positive aspects to evaluate regarding Ripple's business based on XRP, it is difficult to be sure whether these achievements will directly translate into an XRP price increase in the way investors expect. It explained that it is necessary to distinguish between Ripple's business performance and XRP price movements, separate from the recent surge.

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