XRP witnessed a rapid increase followed by a crash in price within minutes after misleading information triggered speculative buying.
Reasons for XRP Price Movements
XRP temporarily rose to $2 on Binance after social media spread news about a potential 90-day suspension of tariffs by the U.S. government. This message, which later proved to be false, grabbed traders' attention and led to a rush to buy the coin.
Impact of Social Media on the Situation
The false information originated from a post by Walter Bloomberg, a notable social media account that shared the news based on supposed remarks from White House economic adviser Kevin Hassett. The post quickly gained traction and was even picked up by mainstream media, including CNBC.
Official Response and Consequences
After the White House issued a public correction stating that Hassett made no remarks about a tariff suspension, the price of XRP quickly fell to $1.85. As a result, over $82 million in XRP positions were liquidated, illustrating the high volatility of the market.
The XRP incident highlights how quickly false news can impact cryptocurrency markets, emphasizing the importance of a critical approach to information.
