Will The Rally In XRP Price Continue?
Ripple's XRP has surged approximately 30% over the past week, decisively breaking above its 20, 50, 100, and 200-day moving averages. This impressive rally aligns with Bitcoin reaching new all-time highs around $121,000, generating strong momentum across the entire cryptocurrency market. Adding to the bullish sentiment, President Trump recently posted on social media: 'Tech stocks, industrial stocks, & Nasdaq, hit all-time, record highs! Crypto, 'through the roof'.' He also urged the Federal Reserve to 'rapidly' cut interest rates, citing 'no inflation.' This endorsement of cryptocurrencies and call for aggressive monetary easing has significantly supported digital assets, with Bitcoin, Ethereum, and XRP all posting solid gains. Trump's remarks suggest a shift toward crypto-friendly policies and looser monetary conditions—two key factors that have historically bolstered digital asset performance. Also, check out the High Quality portfolio, which has outperformed the S&P and delivered >91% returns since inception.
The Impact of Federal Reserve Rate Cuts on XRP
If the Federal Reserve proceeds with rapid interest rate cuts, the cryptocurrency market—especially XRP—could see notable upside. This shift in policy fundamentally reshapes the investment landscape in ways that favor digital assets.
Lower interest rates reduce the opportunity cost of holding assets that don't generate income. With diminished yields on traditional investments like bonds or savings accounts, investors often pivot toward higher-growth options, making cryptocurrencies more appealing. Additionally, weaker interest rates often result in a softer U.S. dollar, enhancing the appeal of alternative stores of value. Given XRP's established role in cross-border payments, it becomes a viable dollar substitute in international transactions.
XRP is especially well-positioned to gain from a low-rate environment due to its practical use within the financial sector. Unlike assets driven purely by speculation, XRP facilitates real-time global payments, adding institutional value.
As financial institutions face tighter margins amid low rates, XRP's efficient payment infrastructure offers a cost-saving solution. Banks and payment providers looking to preserve profitability may increasingly adopt XRP to reduce costs and improve settlement speeds. Moreover, XRP's recent breakout above all key moving averages signals strong technical momentum, which could intensify if favorable monetary conditions materialize.
Broader Market Implications
Swift rate reductions would likely drive capital out of traditional 'risk-free' assets into higher-risk segments. Cryptocurrencies—with their high-return potential—would likely benefit significantly. Historically, such conditions favor established digital currencies like XRP, which offer both speculative upside and real-world utility.
Falling rates also reduce borrowing costs, encouraging leveraged crypto investments and potentially accelerating institutional involvement. With traditional yield avenues narrowing, corporate and institutional investors may increasingly turn to digital assets as portfolio diversifiers.
Technical Momentum Supports Continued Gains
XRP Price History
XRP's clear breakout above key moving averages reflects solid technical momentum that may persist if macroeconomic conditions continue to improve. Its ability to stay above these critical levels highlights continued institutional and retail interest.
As Bitcoin continues pushing new highs and lifting the broader cryptocurrency sector, XRP appears primed for further gains—especially if the Fed adopts the kind of aggressive rate-cutting stance Trump has encouraged.
XRP's 30% rally over the past week reflects growing optimism around Trump's pro-crypto messaging and mounting expectations of monetary easing. Should the Federal Reserve follow through with swift rate reductions, XRP could benefit from sustained investor interest as a viable alternative to low-yield traditional assets. However, investing in individual stocks—or cryptocurrencies, which are significantly more volatile—carries substantial risk. For broader exposure, consider the 30-stock Trefis High Quality (HQ) Portfolio, which has a strong record of comfortably outperforming the S&P 500 over the past four years. What's the reason? HQ Portfolio stocks have generally offered higher returns with lower volatility than the benchmark—resulting in a smoother ride, as shown in the HQ Portfolio performance metrics.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
12 minutes ago
- Yahoo
Dividend Investors: Don't Be Too Quick To Buy Mühlbauer Holding AG (ETR:MUB) For Its Upcoming Dividend
Readers hoping to buy Mühlbauer Holding AG (ETR:MUB) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. Accordingly, Mühlbauer Holding investors that purchase the stock on or after the 24th of July will not receive the dividend, which will be paid on the 28th of July. The company's next dividend payment will be €1.50 per share, and in the last 12 months, the company paid a total of €1.50 per share. Looking at the last 12 months of distributions, Mühlbauer Holding has a trailing yield of approximately 3.3% on its current stock price of €45.40. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! We need to see whether the dividend is covered by earnings and if it's growing. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Mühlbauer Holding paid out 184% of profit in the past year, which we think is typically not sustainable unless there are mitigating characteristics such as unusually strong cash flow or a large cash balance. A useful secondary check can be to evaluate whether Mühlbauer Holding generated enough free cash flow to afford its dividend. Thankfully its dividend payments took up just 49% of the free cash flow it generated, which is a comfortable payout ratio. It's good to see that while Mühlbauer Holding's dividends were not covered by profits, at least they are affordable from a cash perspective. If executives were to continue paying more in dividends than the company reported in profits, we'd view this as a warning sign. Extraordinarily few companies are capable of persistently paying a dividend that is greater than their profits. Check out our latest analysis for Mühlbauer Holding Click here to see how much of its profit Mühlbauer Holding paid out over the last 12 months. Have Earnings And Dividends Been Growing? Businesses with shrinking earnings are tricky from a dividend perspective. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. With that in mind, we're discomforted by Mühlbauer Holding's 24% per annum decline in earnings in the past five years. Such a sharp decline casts doubt on the future sustainability of the dividend. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Mühlbauer Holding has delivered 4.1% dividend growth per year on average over the past 10 years. That's intriguing, but the combination of growing dividends despite declining earnings can typically only be achieved by paying out a larger percentage of profits. Mühlbauer Holding is already paying out 184% of its profits, and with shrinking earnings we think it's unlikely that this dividend will grow quickly in the future. Final Takeaway Is Mühlbauer Holding an attractive dividend stock, or better left on the shelf? It's not a great combination to see a company with earnings in decline and paying out 184% of its profits, which could imply the dividend may be at risk of being cut in the future. However, the cash payout ratio was much lower - good news from a dividend perspective - which makes us wonder why there is such a mis-match between income and cashflow. It's not that we think Mühlbauer Holding is a bad company, but these characteristics don't generally lead to outstanding dividend performance. Although, if you're still interested in Mühlbauer Holding and want to know more, you'll find it very useful to know what risks this stock faces. For example, we've found 3 warning signs for Mühlbauer Holding (1 is potentially serious!) that deserve your attention before investing in the shares. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
31 minutes ago
- Yahoo
Samsung's 'default' Galaxy AI features will remain free indefinitely — here's what you need to know
When you buy through links on our articles, Future and its syndication partners may earn a commission. Samsung has shut down the lingering rumors that it was going to start charging users for the Galaxy AI features it launched alongside the Galaxy S25 series last year. In a report from Android Police, the site says it has direct confirmation from Samsung that default features will remain free "indefinitely". Earlier in the year there was some heavy speculation Samsung would put Galaxy AI behind a paywall after it stated Galaxy AI would be "provided for free until the end of 2025." Android Police doesn't give any reasoning for the U-turn, but Samsung told the publication it will never charge for the features that "are on your phone by default." This likely covers the following: Live Translate Note Assist in Samsung Notes Zoom Nightography Audio Eraser Browsing Assistant Generative Wallpapers Samsung users are also able to access Google's Gemini features for free — and anyone upgrading to the Galaxy Z Fold 7 or Z Flip 7 will receive a six month Google AI Pro subscription for free. That gets them access to advanced features like Veo 3 Fast. Lingering questions The fact Samsung is making these features available for free, indefinitely, is obviously good news. But it does leave a lingering question about whether Samsung may develop better, non-default AI features down the road and charge for that. This could be a single paywall or a tiered system similar to what Google does with its Pro and Ultra plans. The pace (and cost) of AI is not going to slow down any time soon and Samsung faces tough competition in the space from Google, Meta and Microsoft. If this does prove to be the case, time will tell whether or not Samsung has the goodwill to upsell users from free features to paid-for alternatives. Alternatively, this could be the start of something very good for Samsung owners if the company continues to keep handing out its AI developments as freebies. Especially since it just launched a whole set of great new AI features earlier this year alongside the S25. If you're a Samsung owner and new to Galaxy AI, then check out these tips for getting started. More from Tom's Guide Samsung Galaxy S25 AI features — here's everything that's new Galaxy AI beats Gemini for me — 5 features that make it smarter Samsung Galaxy Z Fold 7 hands-on: The first foldable I'd actually want to buy
Yahoo
40 minutes ago
- Yahoo
Trump's Crypto Insider Just Turned $1 Million Into $100 Million -- And He's Not Done Yet
David Bailey the crypto insider who helped flip Donald Trump into a Bitcoin (BTC-USD) backer just pulled off one of the most aggressive plays in crypto investing. His hedge fund, 210k Capital, notched a 640% return over the past 12 months by backing small public companies that pivoted into Bitcoin holdings. Instead of chasing Bitcoin (or ETFs) directly, Bailey and his team have turned companies in sectors as far-flung as hospitality and web design into Bitcoin treasury vehicles. One example: UK-based Smarter Web, whose stock jumped roughly 14,000% after the shift. 210k Capital now manages $433 million, up from $44 million before the strategy caught fire and it's still scaling. The biggest winners so far? Metaplanet and Smarter Web. The fund invested early in both putting 780,000 into Smarter Web's pre-IPO round and $1 million into Metaplanet warrants just as each company pivoted to accumulate Bitcoin. Today, those positions are worth about 110 million and $106 million, respectively. Metaplanet's stock has surged over 9,000% since April 2024. Bailey is now on Metaplanet's advisory board, and Trump's son Eric is part of its strategic team. The Trump-Bailey orbit is tight Trump even gave Bailey a public shout-out during a major Bitcoin event last year. Since then, crypto-friendly sentiment has grown louder, and Bailey has been among the most aggressive at monetizing it through public markets. Looking ahead, 210k Capital isn't slowing down. Managing Partner Tyler Evans says the firm is actively pursuing 30 more Bitcoin proxy deals not just in the U.S. and Europe, but also in markets like India, South Korea, and Southeast Asia, where Bitcoin ETFs haven't launched yet. The goal? Embed with management, engineer the treasury pivot, and ride the wave. It's risky these stocks can be volatile, as seen when Smarter Web dropped 55% from its June peak but if early returns are any sign, this playbook could be one of the most profitable (and unconventional) in crypto's next chapter. This article first appeared on GuruFocus.
