XRP (XRP -10.70%) fell roughly 5.3% as of 1:59 p.m. ET on Tuesday, Sept. 15, from 4:30 p.m. ET yesterday. A key Senate vote and rising bond yields weighed on the token.
The S&P 500 and the Nasdaq Composite were down 0.5% and 0.8%, respectively.
The Senate needed 60 votes to advance the CLARITY Act on Sept. 15
The CLARITY Act is facing a vote in the Senate today. The bill, which would create a regulatory framework for using stablecoins and other digital assets in banking and traditional finance, may not have the votes it needs to pass.
Given XRP's place in the banking world and its relation to the stablecoin RLUSD, the Clarity Act could be a significant catalyst for the token.
Image source: Getty Images.
The 10-year Treasury yield topped 5% for the first time in nearly 20 years
XRP is also facing headwinds from the broader economy. Sticky inflation and rising oil prices have led the 10-year Treasury yield above 5%, reaching its highest point in nearly 20 years. Markets are also pricing in a 93% chance of a Federal Reserve rate hike this week.
CRYPTO: XRP
Key Data Points
Higher yields drag on speculative investments like XRP as investors decide they're no longer worth the risk when a bonds offer an attractive -- and safe -- return.
This is a moment to watch, not a reason to act
This is more of a situation to monitor the situation than a reason to act. That said, I am not a fan of XRP long term, and I would encourage investors to look elsewhere.
