After a successful case with the overestimation of the value of GameStop shares, traders shifted their attention to the cryptocurrency market. Yesterday, February 1, traders brought XRP stock quotes to a local high since November 2020. The value of cryptocurrency shares has risen by more than 400% in less than a month.
However, the company's shares have already declined today, which was expected by analysts. As of 9:00 Universal Time, XRP shares were down by 40%. According to Bybt, traders lost over 508 million dollars. In just a day, the positions of almost 170 thousand users were liquidated.
Thus, it is clear that retail traders failed to make a "pump" at this stage. The market accepted the terms of the game and adapted to the artificially inflated prices of XRP. Moreover, the reverse reaction of stock institutions to the anomaly was almost immediate. Yesterday, the XRP quotes reached the highest since November 2020 – $ 0.75, but today, February 2, the market value declined to $ 0.37.
Some experts agreed that there is a possibility that the price of XRP shares will rise to $ 1.5. Given the previous experience of artificially increasing demand for GameStop shares, this would be an expected and natural reaction, not exceeding the predicted results. However, such a surge did not happen, so the market value of the asset fell by 42% per day.
The current situation emphasizes once again that such actions can only solve momentary problems of companies and are not a cure for financial and reputational losses. In fact, artificially inflating asset prices acts as a kind of placebo in the stock markets, which can remove some symptoms, but can never solve the whole problem.
