XRP Price Under Pressure Despite Record Interest from Institutional Investors
Institutional demand for XRP has reached “record” levels, according to Ripple CEO Brad Garlinghouse, but that hasn’t translated into higher prices for the so-called banker’s cryptocurrency. XRP hit a fresh six-day low on Thursday as altcoins and tokens resumed their bearish cycle.
The XRP price touched a session low of $0.3166, according to CoinMarketCap. At press time, it was trading at $0.3222, down 1.6% from the previous day.
The $0.3200 handle has emerged as a steady support following last week’s price collapse. The cryptocurrency has successfully defended that level on three occassions this week.
Daily trade volumes have held relatively steady around $250 million. Bitbank, Binance and Huobi were the largest markets for XRP trades, based on latest available data. Total market turnover for all cryptocurrencies reached $11.3 billion.
Institutional Investors Increase Their Stake in XRP
Ripple CEO Brad Garlinghouse has disclosed that Wall Street investors are flocking to XRP in record numbers, a sign that bigger institutional players are entering the market.
In a live AMA that aired on YouTube Wednesday, Garlinghouse said his company would provide hard numbers on XRP purchases in its forthcoming quarterly report.
“One of the things I will tease for a future announcement – we’ll do the Q3 XRP markets report, which we always share, where we’re seeing institutional participation in buying XRP,” Garlinghouse said, as quoted by The Daily Hodl. “Q3 will definitely be a record of institutional participation in buying and interest in holding XRP.”
The Ripple CEO also praised the planned launch of Bakkt, a new cryptocurrency company backed by Intercontinental Exchange, Microsoft and Starbucks, among others. Bakkt is a new platform that will hold and manage investors’ cryptocurrency as well as allow customers to pay for goods and services using bitcoin.
Garlinhouse described Bakkt as a “big deal” and said “it’s indicative of where the world is going.”
“I think we’re going to see more players enter, and think that’s a good sign. That’s indicative of the maturing of the industry. I’ve been fond of saying we’re still at hat toddler stage and we’ve got a ways to go. And as we see major participants enter the market, I think it’s a big step forward.”
XRP is currently trading at a small fraction of its all-time high and has been adversely affected by speculation it could soon meet the SEC’s definition of a security. As a security, XRP would be bound by tougher guidelines related to compliance, issuance and trading.
At its lowest point earlier this month, XRP had declined more than 93% from its record high.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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