The cryptocurrency market is taking a hit today and XRP is no exception. Despite a strong year overall, XRP is currently down over 4%, echoing broader market jitters that are sending crypto prices lower across the board.
What’s Happening With XRP?
As of Tuesday afternoon (ET), XRP has dropped 4.1% in the last 24 hours. Bitcoin is also down 2.8%, while Ethereum has slid 4.3%. The trigger? Surprisingly, it’s not a crypto-specific headline.
In its latest earnings report, the home improvement giant announced plans to raise prices due to increased costs from tariffs. This unexpected move has investors worried that inflation might start rising again and that spells trouble for cryptocurrencies.
Why Is Home Depot Affecting Crypto Prices?
It may sound strange, but Home Depot’s price hikes are being seen as a signal inflation could be making a comeback. When one of the largest retailers in the U.S. starts raising prices, the fear is that inflation will ripple through the broader economy.
And why does that matter to crypto? Because if inflation starts to heat up again, the Federal Reserve might delay or even cancel expected interest rate cuts. Higher interest rates tend to strengthen the dollar and weaken the appeal of riskier assets like cryptocurrencies.
Why This Matters for XRP
XRP has had a solid run this year still up nearly 49% year to date but the market remains sensitive to macroeconomic signals. Inflation concerns weigh heavily on crypto because digital assets often thrive in low-rate, high-liquidity environments.
With Home Depot’s pricing update following a hotter than expected Producer Price Index (PPI) report last week, fears are mounting that the Fed might hold off on rate cuts. If that happens, the entire crypto market especially altcoins like XRP could face more turbulence in the short term.
What’s Next?
It’s too early to say if this is just a temporary dip or the start of a larger correction. But one thing is clear: macroeconomic data even from traditional companies like Home Depot continues to have a major impact on the crypto space.
If inflation sticks around and the Fed doesn’t ease up, expect continued volatility. On the flip side, if inflation proves to be short-lived, crypto could rebound sharply.
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