XRP’s Price Correction and Market Impact
The cryptocurrency market experienced a significant shake-up recently, with XRP taking a considerable hit. On Thursday, XRP’s price dropped by 12.5%, moving in tandem with the broader crypto market, which saw a 3% slip over a 24-hour period, bringing the total market capitalisation to $3.79 trillion. The Ripple-linked cryptocurrency plunged as much as 19% to an intraday low of $2.95 on Thursday, a notable decline from its multiyear high of $3.66. This sharp correction was primarily fueled by cascading liquidations and thinning liquidity, as over-leveraged long positions were flushed across the board.
Despite giving back a significant portion of its recent gains, XRP still maintains an impressive approximately 40% increase over the past month, signalling underlying strength. Analysts, however, are largely interpreting this substantial price drop as a “healthy pullback,” suggesting that it is a necessary market adjustment rather than a sign of a fundamental reversal. This perspective is crucial for investors, as it implies that the long-term bullish targets for XRP, including potential double-digit price levels, remain in play.
XRP: Healthy Correction, Not Rally End
Crypto analysts are arguing that XRP’s recent dip is a “healthy correction” due to the market’s consolidation phase. Michael van de Poppe, founder of MN Capital, believes that the market is clearing out excess leverage to prepare for a more sustainable rally. However, few analysts see this as the end of crypto’s 2025 rally. Key catalysts include ongoing ETF flows and favourable macroeconomic data. XRP’s sharp drop occurred just a week after breaking its 2018 record, hitting an all-time high of $3.66. The current cool-off is seen as a natural market reaction, allowing the asset to digest gains before a potential resumption of its upward trajectory.
BitMine’s Aggressive Ether Accumulation
Bitcoin mining firm BitMine Immersion Technologies has acquired over $2 billion worth of Ether (ETH) in just 16 days, signalling an intensifying “treasury arms race” within the crypto corporate world. The company has purchased 566,776 Ether, valued at over $2.03 billion, within this short period. Tom Lee, managing partner of FundStrat and chairman of BitMine, confirmed the company’s ambitious goals, stating that after this buying spree, BitMine is “well on our way to achieving our goal of acquiring and staking 5% of the overall ETH supply.” This aggressive accumulation strategy reflects a broader trend of institutional players seeking direct exposure to Ether, recognising its utility and role in the decentralised finance ecosystem.
Ether’s Potential Supply Shock and Outperformance
Rapidly growing institutional interest in Ethereum could trigger a supply shock, potentially positioning Ether to outperform Bitcoin within the next six months. This bold prediction comes from Michael Novogratz, CEO of Galaxy Digital, a prominent figure in the crypto space. Novogratz told CNBC on Thursday, “There’s not a lot of supply of ETH, and so I think ETH probably has a chance to outperform Bitcoin in the next three to six months.” He further suggested that if “ETH takes out $4,000, it goes into price discovery,” referring to a level that represents an approximate 8.5% jump from Ether’s current price of $3,618, according to Nansen.
This outlook is supported by the fact that despite the recent market correction, Ethereum has staged a swift recovery, with prices bouncing back to around $3,660, nearly erasing the dip that triggered liquidations. Ethereum has been on a hot streak since the start of Q2, gaining more than 40% in the last two months, a testament to its robust ecosystem and increasing institutional adoption through ETF vehicles. The combination of limited supply and surging institutional demand could indeed create a powerful upward price momentum for Ether.
Read More: XRP Price Plunge Will All-Time High Comeback Still Happen
Meme Coin Volatility and Recent Crashes
The crypto market correction saw significant volatility and crashes among meme coins, highlighting their inherent risks. Memecoins inspired by Hulk Hogan and Ozzy Osbourne experienced a surge in price due to tributes following their deaths. However, not all meme coins performed well, with Pump.fun (PUMP) being one of the top altcoin losers, plummeting 41.74%. Sonic (S) and Aptos (APT) also saw significant declines, highlighting the unpredictable nature of meme coins. While some meme coins capitalise on viral moments, others suffer severe losses, highlighting the extreme volatility and risk associated with this crypto market segment.
Bitcoin, Ethereum: Crypto Experts’ Mixed Forecasts
Crypto market figures have expressed mixed opinions on the future of the cryptocurrency market. Some, like Robert Kiyosaki, a renowned author, remain bullish on Bitcoin, while others, like Mena Theodorou and Michael Novogratz, emphasise the importance of analytical, emotionless approaches. Novogratz believes that ETH may outperform Bitcoin in the next three to six months due to limited supply. Meanwhile, Markus Thielen of 10x Research believes Ethereum is vulnerable in the near term.
The dialogue between policymakers and Web3 leaders is also becoming more open, shaping legislation and giving institutions more confidence to commit to longer digital asset roadmaps. These diverse perspectives highlight the complex and evolving nature of the crypto market, influenced by technical factors and broader regulatory and institutional developments.
Broader Market Trends and Notable FUD
Beyond the individual asset movements, several broader market trends and instances of “Fear, Uncertainty, and Doubt” (FUD) have shaped the crypto landscape this week. The total market capitalisation stands at $3.88 trillion, with Bitcoin at $117,962, Ether at $3,774, and XRP at $3.20. Among the top 100 altcoins, Conflux (CFX) gained 72.84%, Ethena (ENA) 47.25%, and Pudgy Penguins (PENGU) 35.84%. On the FUD front, an Arizona woman was sentenced to over eight years in federal prison for helping North Korean coders infiltrate US crypto firms using stolen identities, generating over $17 million in illicit revenue. This highlights ongoing security and regulatory concerns.
Another piece of FUD involved Bitcoin tumbling below $116,000, leading to over half a billion in long liquidations, with BTC accounting for $140.06 million and ETH for $104.76 million. Additionally, two suspects in a New York crypto torture case were granted $1 million bail each, accused of kidnapping and torturing an Italian man for his Bitcoin credentials. These incidents underscore the persistent challenges of security and illicit activities within the crypto space, even as the market shows signs of resilience and continued institutional interest.
