Why the cryptocurrencies XRP, Dogecoin and Shiba Inu are having problems today

Cryptocurrencies took a breather today due to price Bitcoin It fell back from $100,000 and was trading at around $97,500 as of 1:00 p.m. ET. Treasury yields rose in anticipation of new inflation data later this week, but otherwise it was not immediately clear what triggered the selloff.

Other cryptocurrencies followed Bitcoin’s example and also struggled today. The price of XRP (CRYPTO:XRP) was down 6.6%. In the meantime, meme tokens Dogecoin (CRYPTO: DOGE) And Shiba Inu (CRYPTO:SHIB) fell by 5.4% and 5.2%, respectively.

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Despite a rise in the 10-year U.S. Treasury yield that had previously pressured Bitcoin prices, most crypto news appeared positive this morning. The strong Bitcoin buyer Microstrategy just announced an additional $2.1 billion in Bitcoin purchases at an average price of $98,783 and the company now holds $25.6 billion worth of Bitcoin.

Some now Amazon Shareholders suggest the company follow in MicroStrategy’s footsteps and hold 5% of its assets in Bitcoin. The deeper Bitcoin becomes embedded in the mainstream financial system, the better it is likely to perform, so it’s an interesting development.

In more negative headlines, media outlets reported that El Salvador will roll back some of its Bitcoin laws to secure loan agreements from the International Monetary Fund (IMF), the World Bank and the Inter-American Development Bank. El Salvador bet heavily on Bitcoin a few years ago, making it legal tender in the country in 2021 and accumulating a significant amount of Bitcoin. The country has made hundreds of millions in profits.

Ultimately, I think the most likely reason for the decline is that investors are taking a breather, which is good in bull markets. In more token-specific news, Ripple CEO Brad Garlinghouse appeared on CBS 60 minutes last night to discuss President-elect Donald Trump’s victory, what it means for the sector, and other crypto regulations. Ripple is the company behind XRP. Investors were excited by the performance and it may have contributed to XRP’s huge recent rise.

However, Garlinghouse seemed disappointed with the interview. This could be contributing to XRP’s difficulties today. There’s no way to know, but in general I would expect meme tokens like Dogecoin and Shiba Inu to underperform or outperform most of the sector, so XRP’s underperformance today could indicate more token-specific news.

The crypto bull market appears to be intact for now and I think it will likely gain momentum until 2025. However, finding the right timing for any sector or market is incredibly difficult, and this is even more true in the volatile crypto sector.

I prefer owning traditional tokens like Bitcoin and Ethereum versus altcoins. Bitcoin is increasingly seen as a hedge against inflation, while Ethereum has become the go-to platform for developers to build decentralized applications. I also own some XRP and see potential for the token as the SEC lawsuit should soon be settled once and for all (the SEC has challenged parts of the judge’s decision) and all uses of the token and the network with cross-border payments. There is also the possibility of spot XRP exchange-traded funds, which would increase exposure to the token.

I stay away from Dogecoin and Shiba Inu. They are likely to outperform in a crypto bull market, but are extremely volatile, so investors should approach them with caution.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bram Berkowitz holds positions in Bitcoin and XRP. The Motley Fool has positions in and recommends Amazon, Bitcoin and XRP. The Motley Fool has a disclosure policy.

Why Cryptocurrencies XRP, Dogecoin and Shiba Inu Are Struggling Today was originally published by The Motley Fool

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Why the cryptocurrencies XRP, Dogecoin and Shiba Inu are having problems today

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