Illiquidity Is More a Feature Than a Bug
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15 minutes ago
- Yahoo
Should You Buy XRP (Ripple) While It's Under $5?
Key Points XRP's value has surged nearly 480% in just 12 months. Deregulation, ETFs, and general crypto enthusiasm are driving the coin's value higher. XRP is priced for perfection, and it's looking increasingly like a speculative gamble. 10 stocks we like better than XRP › Cryptocurrency XRP (CRYPTO: XRP) has gained lots of attention from investors lately, resulting in a 480% increase over the past year. Whenever any type of investment rises that quickly, it's worth evaluating to see if it's worth owning. Unlike some cryptocurrencies, XRP (sometimes called Ripple) has real-world applications through its blockchain, which can act as a bridge currency in foreign transactions, saving both time and money compared to traditional financial transactions. But XRP's rapid value increase calls into question whether the crypto is overvalued right now, and if it's being driven higher simply because of investor sentiment. While XRP isn't necessarily a meme coin, here are three reasons why it may be best not to buy it right now. 1. It's very volatile If you're interested in owning cryptocurrencies, then it's likely that you're OK with some volatility. Any type of investment will have price swings, of course, but cryptocurrencies are more prone to make big movements on little to no news. While XRP isn't unique in its volatility, I think it's significant enough to dissuade some investors from owning it. Consider that back in February, XRP's value fell about 30% in just a five-week period. XRP regained its footing temporarily, but then fell 16% in just one week following the announcement of President Donald Trump's tariffs in early April. Those are just two examples of XRP's tendency toward volatility, both occurring within weeks of each other. Of course, the coin's value has subsequently rallied again, but if you're not used to investment value shifts to this degree and they might cause you undue stress or prompt you to take action without thinking, then it's probably best to stay away. 2. It's fairly speculative It's important to point out that some of the price movements XRP has experienced are tied to concrete reasons. For example, some of XRP's price gains over the past year have come from investors getting excited about crypto exchange-traded funds (ETFs) focused on XRP and the Trump administration taking a more open approach toward cryptocurrencies. But while crypto ETFs can signal more legitimacy for digital coins and open them up to more investors, there's still a lot of speculating involved. Some analysts have estimated that XRP's price could surge to $25 because of the launch of the ETFs -- only to see the value then fall by 90%. While that's just a prediction, it's a good representation of how speculative the price of XRP can be. What's more, XRP's value jumped more than 70% in the past month after the House of Representatives passed the Genius Act and the Digital Markets Clarity Act in the House, both of which clarify regulations for crypto and stablecoins. While it's good news for the industry, a 70% surge in XRP's price is likely unwarranted. Huge value movements over a short period, whether for stocks or crypto, often signal that investors are pushing up an investment solely based on how they feel. 3. It's already richly valued XRP's massive run lately means this crypto is priced for perfection. Its price already includes optimism around crypto deregulation, the launch of XRP ETFs, real-world usage of its blockchain, and a general optimism that's fueling a surge in crypto prices. In short, XRP is already on a huge run based on a handful of tangible reasons, and any more gains from here are likely purely built on the whims of crypto investors. Unlike stocks, cryptocurrencies don't have cash flow or earnings to judge their value by, and based on XRP's 480% jump over the past year, it looks like the coin's price is now detached from the already speculative metrics used to judge crypto values. Could XRP still go higher? Of course. Many cryptocurrencies have shown that they can continue to climb even without being tied to any concrete metrics. But there's no getting around the fact that buying XRP means you're paying a premium. And with optimism for XRP sky-high, any unmet expectations from the crypto could cause a substantial sell-off. Should you invest $1,000 in XRP right now? Before you buy stock in XRP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and XRP wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends XRP. The Motley Fool has a disclosure policy. Should You Buy XRP (Ripple) While It's Under $5? was originally published by The Motley Fool
Yahoo
24 minutes ago
- Yahoo
China Ditches U.S. LNG as Russian Pipelines and Domestic Output Surge
Over the past couple of years, China has become the world's largest importer of Liquefied Natural Gas (LNG), surpassing Japan as the top buyer of super-chilled gas since 2021. China's surging LNG imports have been shaping Asian energy flows, with the country accounting for more than 40% of the continent's total LNG import growth. However, China's dominance in LNG markets now appears in jeopardy, and we are seeing a prolonged decline in imports. According to ship-tracking data by Kpler via Bloomberg, China's LNG imports are estimated to have clocked in at 5 million metric tons in June 2025, good for a hefty 12% year-on-year decline, marking the eighth straight month of declines. In the first four months of the year, China's LNG imports slumped to 20 million tons, a sharp fall from 29 million tons from last year's comparable period. Full-year imports for the current year are now expected to fall 6–11% to 76.65 million metric tons. This trend appears to defy earlier projections for China's LNG demand to continue growing through 2035. This, coupled with ongoing shifts in the country's oil import dynamics, signals major changes in global energy flows. In 2023, China averaged 9.5 billion cubic feet per day in LNG imports, with Australia supplying 34% of total imports; Qatar 23%, Russia 11% and Malaysia 10%. There are several factors driving this unexpected trend. First off, China has seen a significant increase in pipeline imports from Russia and Central Asia, as well as a 6% increase in domestic gas production, both lowering LNG demand. Pipeline gas accounted for 41% of China's 16.0 Bcf/d natural gas imports in 2023, with Russia (via the Power of Siberia 1 pipeline), Turkmenistan and Myanmar supplying the is actively increasing its pipeline gas exports to China as part of its strategy to reorient its energy exports away from Europe and towards Asia, with China as the leading target. Specifically, the Power of Siberia 1 pipeline is expected to reach its full capacity of 38 billion cubic meters (bcm) by 2025, and a new pipeline, Power of Siberia 2, is planned to further increase exports to China by an additional 50 bcm per year. Russia is also exploring other potential pipeline routes to China, including one that would transit through Kazakhstan. This could further expand export capacity and provide alternative routes to diversify supply. Second, trade tensions between Washington and Beijing have forced China to halt U.S. LNG imports since March 2025 after Trump slapped a punitive 125% tariff on its key trading partner. Consequently, China redirected purchases to Asian suppliers like Qatar and Indonesia. Third, weak industrial demand due to slowing growth by China's industrial and chemical sectors has taken a toll on gas demand. These pivotal sectors are experiencing a slowdown due to a combination of factors including a broader economic slowdown, a struggling real estate market, weaker global demand for exports, and reduced foreign investments. To exacerbate matters, China's GDP growth is projected to slow down in the coming years despite showing resilience against U.S. tariffs, with forecasts suggesting growth below the official target and a further easing in 2026. The Organisation for Economic Co-operation and Development (OECD) has projected that China's economic growth will moderate from 5.0% in 2024 to 4.7% in 2025 and 4.3% in 2026. Finally, a milder winter has lowered demand for residential heating particularly in northern China. China's falling LNG imports are having ripple effects across global energy markets. Weakening demand is freeing up LNG volumes, easing supply pressure to other Asian countries including Japan and India as well as Europe. Falling Chinese demand is also depressing Asian spot LNG prices, with prices dropping to $11/MMbtu in May 2025 from a February peak of $16.50/MMBtu. Chinese buyers tend to turn to pipeline gas and domestic production whenever Asian gas prices exceed $10/MMBtu. Finally, the halt of U.S. LNG exports to China threatens long-term contracts worth 20 million tons per year with U.S. suppliers. Chinese LNG buyers are now reselling U.S. cargoes to Europe and also seeking new deals with Asia-Pacific and Middle Eastern suppliers, undermining U.S. export growth. Meanwhile, China's pivotal crude oil sector is facing serious headwinds, too. Last year, China experienced a decline in transportation fuel demand, marking a significant shift away from the historical trend of increasing demand. China's consumption of gasoline, jet fuel and diesel in 2024 was ~8.1 million barrels per day, 2.5% below 2021 levels and just above 2019 levels. This decline was primarily driven by a combination of factors including a shift towards electric vehicles, a slowdown in the construction sector, and a weakening in consumer spending. Indeed, the International Energy Agency (IEA) has predicted that combustion uses of petroleum fuel in China has already plateaued. By Alex Kimani for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Birch Hill and Brookfield to acquire First National Financial for $2.9 billion
(Reuters) -First National Financial said on Sunday that it has reached an agreement to be acquired by Birch Hill Equity partners and asset manager Brookfield Asset Management in a deal valuing the company's equity at $2.9 billion. Sign in to access your portfolio
