Ripple (XRP) recovered slightly during the past few weeks but it is now again falling, heading towards below $1. But why is Ripple (XRP) falling?
The first fall of the Ripple (XRP), as well as in the other crypto coins cases, was put to the South Korean government which took the decision to regulate cryptocurrency trading.
However, the Ripple (XRP) and other digital assets started to recover in mid-January but now they are all falling, with only one exception – Ethereum (ETH). Bitcoin (BTC), for example, reached to almost $9,000.
Despite the surprising partnerships the Ripple company has signed in the recent period with companies, such as the international payment processor MoneyGram (which is still testing the Ripple network), IDT, and Mercury FX, the coin hasn’t scored a big growth, lately.
Even more, yesterday, the Arun Jaitley, the Indian Minister of Finances, promised to remove digital assets such as Ripple (XRP), Ethereum (ETH), and Bitcoin (BTC).
“The government does not recognize cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payments system,” said Arun Jaitley.
Upon this statement, the Ripple (XRP) declined, as well as the Bitcoin (BTC).
At the moment of this article, Ripple (XRP) dropped below $1 ($0.99) showing a 12.67% depreciation.
However, the only cryptocurrency which hasn’t been influenced by the Indian Minister announcement is the Ethereum (ETH) which has even increased by 1.78%, hitting $1,132.46, at the moment of this article.
The trend will most likely be the same for the future days until the market will recover from the threats. However, the Indian government is already the second one after the Korean government, which, in a short period of time, smashes the cryptocurrencies utility, leading to the declining of the crypto market.