XRP, one of the most talked-about cryptocurrencies, experienced a sharp decline in price on December 9, 2024, following Ripple Labs CEO Brad Garlinghouse’s appearance on the popular CBS program 60 Minutes. The price dropped to $2.40, a 16.2% decrease from its yearly high, and this reversal raised questions among investors. Was it just a coincidence, or did Garlinghouse’s interview play a key role in the price dip? Let’s break it down.
The Aftermath of Garlinghouse’s Interview
Brad Garlinghouse’s interview on 60 Minutes was widely anticipated. Ripple’s CEO discussed a range of topics, including the company’s legal battle with the U.S. Securities and Exchange Commission (SEC), XRP’s status, and its use case. However, the interview sparked controversy, especially among XRP supporters, as Garlinghouse took to X (formerly Twitter) to express dissatisfaction with how the segment was edited.
One of his key complaints was that the program did not mention the 2023 ruling by a federal judge, which confirmed that XRP is not a security. This is a crucial point for Ripple and its supporters, as the classification of XRP as a security has been at the heart of its legal dispute with the SEC. The absence of this detail in the interview may have left some viewers with the wrong impression about XRP’s legal status, creating uncertainty among investors.
Additionally, Garlinghouse criticized the program for downplaying XRP’s utility, likening it to early skepticism faced by the internet. He emphasized that Ripple is a significant player in the world of cross-border payments, handling billions of dollars in transactions through its KYC-compliant network. Ripple’s recent financial results also demonstrated the growth of its network, with over 172 million transactions processed in the third quarter alone—an impressive 99% increase year-over-year.
Price Correction Amid Broader Market Decline
While Garlinghouse’s frustration with the 60 Minutes portrayal of XRP may have influenced some market sentiment, the drop in XRP’s price likely had broader market influences. On December 9, XRP saw a harsh reversal, following a similar trend in Bitcoin and other altcoins. The broader cryptocurrency market experienced a pullback, contributing to XRP’s drop from its peak this year.
XRP had been on an impressive upward trajectory in recent months, rallying 382% from its lowest point in November. This surge made XRP one of the top-performing cryptocurrencies of the year, positioning it as the third-largest digital asset by market cap. Much of this rally was fueled by growing optimism that the new SEC leadership, under Donald Trump, would adopt a more crypto-friendly stance compared to the previous administration under Gary Gensler. Investors also speculated that Paul Atkins, the new SEC commissioner, might decide to drop the agency’s appeal of the 2023 court decision, and that the SEC could approve a spot XRP ETF by 2025.
Investor Sentiment and Future Prospects
Despite the recent drop, the long-term outlook for XRP remains positive. The cryptocurrency has shown resilience and utility, handling millions of transactions daily. Moreover, the legal landscape for Ripple is improving, with the SEC’s ongoing appeal still hanging in the balance. Investors are hopeful that the approval of a spot XRP ETF could further boost the coin’s adoption and price.
In conclusion, while Garlinghouse’s 60 Minutes interview might have sparked some negative sentiment, the primary cause of XRP’s price drop appears to be a broader market correction. XRP remains a strong contender in the crypto space, and its future will depend on legal developments, market conditions, and its continued growth in the payments sector.
