XRP Yield Risks Explained by XRPL Contributor, Schiff Acknowledges Satoshi’s Innovation With Bitcoin, Six Macro Events to Define Crypto Market This Week: Morning Crypto Report

TL;DR

• XRPL contributor “Vet” warns that high APR staking (like fXRP in Xaman) contains risks as higher yields equal higher collateral and market volatility exposure.
• Crypto skeptic Peter Schiff sarcastically labeled Bitcoin a “decentralized Ponzi,” making its lack of a central leader the only true “innovation” by Satoshi.
• Six major U.S. economic reports, including ISM Manufacturing and Non-Farm Payrolls, are expected to trigger high crypto volatility this week.
• Weak U.S. employment data is currently viewed as a bullish catalyst for crypto, as it increases the likelihood of Fed rate cuts.
• Bitcoin (BTC) eyes $70,000 resistance with support at $65,500; XRP faces a breakout target of $1.50 with immediate support at $1.32.

XRPL validator reminds about risks tied to earning yield on XRP

With the rapid development of the XRP Ledger ecosystem and the emergence of new financial products within it, especially decentralized ones, a popular contributor and member of the XRP community known online as “Vet” issued a friendly reminder today — for every “ounce,” as he notes, of yield you receive on your XRP, there is a certain level of risk involved.

This, in his view, is often forgotten or not fully understood, and despite the fact that yield is an essential part of the DeFi sphere, it is necessary to remember good due diligence.

It is likely that Vet’s words were triggered by the recent integration of Flare XRP (fXRP) into the popular wallet Xaman, which is built exclusively for working with XRP. In particular, as both Flare and Xaman note, thanks to this integration, it is possible to stake XRP in various pools at certain APRs, which in some of them reach double-digit percentages — something that cannot be not attractive for XRP holders.

However, as Vet points out — and he is undoubtedly right — the “higher the yield, the higher the risk” — an equivalence that has existed in global financial markets for hundreds of years. The same logic applies to earning yield on XRP in wallets.

So yes, the yield is part of DeFi, but as was said, “Don’t sleep on good diligence.”

Satoshi innovated with Bitcoin, admits Peter Schiff with sarcastic twist

The next interesting story of this morning in crypto is about Peter Schiff, and no, if you read the headline and thought that the most well-known and probable the loudest critic of Bitcoin suddenly changed his position overnight, that is not the case.

Still, he emphasized something that had not previously been voiced by him, calling Bitcoin a “decentralized Ponzi,” which, in his opinion, is precisely where the innovation of the leading cryptocurrency lies. His advice on what to do with Bitcoin remains the same as it has always been — sell it while it has not gone lower.

It would be interesting to hear Satoshi Nakamoto’s reaction to these words, since he created Bitcoin and, therefore, the “decentralized Ponzi” scheme innovation would belong to him. However, the creator of Bitcoin disappeared 13 years ago and has not made it back to the public, which, in Schiff’s view, is what makes this “Bitcoin Ponzi scheme” a decentralized one.

Six key macro reports to affect crypto market this week

The week on the crypto market promises to be highly volatile, and this is not due to renewed geopolitical tensions, but mainly because of macro factors, especially in the United States. Considering how closely the crypto market is tied to the dollar, the U.S. economy and its key indicators are currently decisive for price action across the entire market. 

One of the main events will take place today, Monday, with the release of the U.S. ISM Manufacturing PMI, which should reveal early growth signals from U.S. manufacturing.

It can be interpreted as follows: if the reading is strong and high, market participants will likely see this as global risk-on sentiment and rising optimism, which is a bullish scenario for crypto. However, weakness and a print below expectations will, of course, reverse sentiment toward a bearish one.

Further, on Wednesday, March 4, the U.S. ADP Private Payrolls report and the Fed’s Beige Book are due. Here we receive a preview of employment data and a regional summary from the Federal Reserve, which is decisive both in rhetoric, decisions and expectations regarding monetary policy. Inflation and the Fed rate decision come later in March, but whether it changes or remains unchanged, will flow from the tone of the Beige Book. 

Looking ahead, since the U.S. Non-Farm Payrolls are expected on Friday, strong Payrolls data earlier in midweek can build a hawkish case before Friday, therefore implying a bearish setup. Weak employment data, on the other hand, would increase hopes for rate cuts, which means a liquidity tilt.

Then on Thursday, March 5, U.S. Initial Jobless Claims follow — basically, the weekly pulse check of the labor market. As always, there is a direct relationship. The lower the claims, meaning a stronger labor market, the more bearish the tilt as it supports tighter Federal Reserve policy. Rising claims, however, signal a weakening labor market, which is bullish for easing expectations and crypto.

Friday closes the week with U.S. Non-Farm Payrolls, the Unemployment Rate, plus wage growth. This is the most comprehensive monthly labor report and the most important macro event of the week. A hot print there, meaning strong jobs and wages, implies a strong dollar, higher rates and a lower probability of a Fed rate cut, which is a bearish scenario for crypto. A soft or mixed print, however, increases the probability of rate cuts and implies broader upside potential. 

Summing it up in one sentence, weak U.S. employment data is the cleanest upside catalyst for crypto. Strong data implies continued pressure. In any case, high volatility should be expected.

Crypto market outlook: XRP, BTC price updates

In light of all of the above, attention should be focused on the following key price levels: 

• Bitcoin (BTC): $65,500-66,400 range is currently where price is concentrated and represents strong support. Resistance is located above at $67,000-$68,200. The initial upside target is positioned at $70,000. In contrast, the $60,000 level set almost a month ago in February remains untouched and is a major downside target. 
• XRP: Price continues to move around the $1.36 mark, with immediate support located at $1.32 and stronger support at $1.27. Resistance is positioned at $1.42 per token. The main breakout objective stands at $1.50 for XRP.

Both assets are range-bound amid macro uncertainty and in anticipation of Friday’s Non-Farm Payrolls. A bullish catalyst for both would be weak employment data and developments related to international relations.