XRP is facing a steep sell-off as political turmoil rocks the cryptocurrency market. The token is down over 4% on Tuesday, with broader crypto markets also sliding. A scandal involving Argentine President Javier Milei and the controversial Libra token appears to be driving the latest wave of bearish sentiment.
Milei’s Libra Scandal Sparks Market Jitters
On Friday, President Javier Milei publicly backed a new cryptocurrency, Libra, claiming it would help boost economic growth by funding small businesses and startups. That endorsement triggered a frenzy of buying, sending the token’s market cap soaring.
Then came the crash. Large holders of Libra suddenly dumped their stakes, leading to a textbook “rug pull.” Investors who jumped in following Milei’s comments were left scrambling as the token’s value plummeted.
The fallout didn’t stop at Libra. XRP, along with Bitcoin and Ethereum, felt the ripple effects as the scandal fueled uncertainty about the role of political figures in crypto markets.
XRP’s Recent Rally Faces a Reality Check
XRP has been one of the strongest-performing cryptocurrencies in recent months, surging 369% in just six months. That rally has been fueled by optimism surrounding potential regulatory wins and growing speculation that a Trump-led SEC might drop an ongoing securities case against XRP’s creator.
Adding to the excitement, reports suggest that Trump’s crypto advisory team is considering including XRP in a U.S. digital assets reserve. There’s also speculation that ETFs could soon offer exposure to XRP, which would bring fresh institutional money into the asset.
But recent events serve as a stark reminder that political involvement in crypto can be a double-edged sword. Milei’s Libra fiasco has put investors on edge, forcing many to reconsider just how much weight political endorsements carry.
A Volatile Path Ahead for XRP?
Crypto markets are no strangers to extreme volatility, but the latest developments highlight a few key risks:
- Regulatory uncertainty: XRP’s battle with the SEC remains unresolved, and while hopes for a favorable outcome remain high, nothing is guaranteed.
- Political influence: The Milei scandal is a fresh example of how quickly sentiment can turn when political figures make moves in crypto.
- Market manipulation concerns: Libra’s rug pull is a harsh reminder of the risks associated with low-regulation digital assets.
XRP has enjoyed a strong bull run, but its future could hinge on how quickly confidence in crypto markets recovers from this latest controversy. Traders will be watching closely for any updates from U.S. regulators—and whether XRP’s inclusion in ETFs or a digital reserve materializes.
For now, though, the market is in sell-off mode, and XRP is feeling the heat.
