[ad_1]
Yuriko Nakao / Getty
Rival Bitcoin XRP token and the Dogecoin meme currency both exploded on Monday, as amateur investors focused on new assets in the wake of the GameStop saga and Elon Musk spurred interest in crypto. currencies.
XRP rose 50% before falling sharply. It was the latest rise of 21.27% to $ 0.59668 per coin at 7:50 a.m. ET.
Dogecoin was 28.36% higher at $ 0.03929, after falling sharply from a high of over $ 0.07 on Friday. Bitcoin, the largest cryptocurrency in terms of market value, fell 0.89% to $ 33,726.
Last week, day traders at the Reddit Wall Street Bets forum skyrocketed the shares of video game store GameStop in an attempt to pressure hedge funds that had bet against the stock – and earn a lot of money. ‘money.
Read more: A chief investment strategist explains how the GameStop saga could upend long-standing practices on Wall Street – and shares his 4-part tips for navigating the hectic business environment.
The army of amateur investors appeared to have locked in to a wider range of targets on Monday, with silver hitting its highest level in 8 years and XRP and Dogecoin both jumping.
XRP is both a cryptocurrency and digital payment network created by the American company Ripple. It fell last year after the Securities and Exchange Commission announced a lawsuit against Ripple for allegedly carrying out an unregistered securities offer, which Ripple denies.
Dogecoin is a ‘meme’ cryptocurrency that was created in 2013, apparently as a joke, but which has caught more and more fans. A cryptocurrency is a secure digital currency, often without a central supervisory authority.
Tesla founder Elon Musk encouraged the recent surge in interest in cryptocurrencies. In a Sunday night video on the Clubhouse app, Musk said it would be funny if “Dogecoin became the currency of Earth in the future”.
Read more: As Redditors Flood the Stock Market, UBS Breaks Down 6 Option Strategies Investors Can Use Right Now to Protect Their Portfolios
Part of the surge in the price of XRP was driven by a concerted effort by fans of the coin, echoing the GameStop phenomenon. A group on the Telegram messaging app called Buy & Hold XRP has reached the maximum threshold of 200,000 members.
Still, the strategy looked shaky shortly after 7 a.m. ET as the price fell sharply. One Reddit user said, “Alright, I want to know who did it. Who took the xrp from 74 cents to 60? I’m not mad, I just want to talk.”
Naeem Aslam, market analyst at Avatrade, said small retail traders “love” XRP because it is cheaper than Bitcoin but has a reasonably large market cap.
“Yes [Ripple] wins its lawsuit against the SEC, we could see some serious upward movement for XRP, ”he said.
[ad_2]
Source link