Bitcoin and XRP have been on fire in recent months, until they took a break. While Bitcoin fell from its July highs, XRP dropped nearly 20% in a single session. Despite the red candles, long-term investors are not worried. Could this simply be part of a normal market cycle?
Are these just normal corrections in a bull market?
Bitcoin and XRP may have gone down recently, but experienced investors aren’t worried. XRP fell by almost 20% in one session, and Bitcoin fell back after reaching an all-time high in July. But these kinds of big drops aren’t unusual; in fact, they happen a lot in markets that are going up.
Bitcoin has dropped 20% to 50% during past bull runs, but it still ended the cycle much higher. So far, the 2024-2025 cycle has been easier, with corrections mostly staying below 20%. In the past, short-term traders have panicked first, but long-term holders usually stay calm and do better in the end.
What do the basics say about XRP and Bitcoin?
Nothing has changed on a fundamental level, even though the prices have gone down. Bitcoin’s halving in April cut daily issuance by a huge amount, making it naturally scarce. When you add that to the steady interest from institutions, like the $1.3 billion ETF inflows on July 11, the long-term supply-demand outlook stays positive.
Ripple’s work to improve compliance infrastructure is helping XRP gain popularity. As rules become clearer, institutional investors feel more at ease putting money into assets like XRP. This kind of trust is important.
There is still a lot of on-chain activity, liquidity, and demand from investors. If this were a “cooling” market, we would expect to see ETF outflows and weaker fundamentals continue, but neither of those things is happening.
Could the macro climate keep crypto going?
The M2 money supply has reached an all-time high of $55.5 trillion, which is a sign that global liquidity is on the rise. Central banks are still dovish, and in some places, like the UK, they are even considering cutting rates. This means that cheap money is still looking for a place to go, and crypto is still one of the best options.
All signs point to a healthy market taking a break, not a rally that is fading. Prices may go down more, but for long-term investors who use strategies like dollar-cost averaging, these times are usually chances instead of warnings. As long as the basics stay the same, Bitcoin and XRP could be getting ready for the next leg up.
Also read: Ethereum 2035 Forecast: What the Next 10 Years Could Look Like
