they will only cut rates and start QE when the neutral interest rate is met. only then will it stimulate the economy
Ripple forum
they will only cut rates and start QE when the neutral interest rate is met. only then will it stimulate the economy
The ongoing reverse carry trade unwind is likely to have a significant impact on Ripple (XRP), potentially leading to increased demand and a surge in its value. Several factors contribute to this outlook:
Increased Liquidity and Shift in Asset Preferences: As the reverse carry trade unwinds, liquidity is shifting away from low-interest-rate currencies like the yen and towards higher-yielding assets. XRP, with its relatively high yield and growing adoption, could become an attractive asset for investors seeking higher returns.
Potential Beneficiary of Regulatory Changes: If Tether (USDT), a major stablecoin, faces regulatory challenges, it could result in a reallocation of assets and increased demand for XRP as a safer and more regulated alternative for stable transactions.
Enhanced Use Case and Infrastructure Development: Projects like Project ION, a blockchain settlement platform developed by R3 and DTCC, could increase XRP's traction in cross-platform financial operations, especially during periods when traditional markets are closed.
Geopolitical Risks and Oil Price Fluctuations: Rising oil prices due to geopolitical tensions could push capital toward alternative assets like XRP, which is perceived as a safer investment during times of economic uncertainty.
Surge in Price Forecasts: Notably, Jake Claver, CEO of Digital Ascension Group, has predicted a bold price surge for XRP, forecasting it to reach $1,500 to $2,000 by early 2026. This optimistic outlook is based on macroeconomic shifts, regulatory developments, and structural changes in the global financial system.
In summary, the reverse carry trade unwind, combined with regulatory shifts, enhanced use cases, and geopolitical risks, is likely to create a favorable environment for XRP, potentially leading to increased demand and a significant surge in its value.