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After last week’s sell-off the bitcoin price found support at around $5,500 but that has now eroded, with bitcoin falling some 3% over the last 24 hours to under $5,340—its lowest price since October last year. Is it a turn for XRP to become the first now?
November 15 will definitely be remembered as one of the worst single-day corrections in all of 2018. The crypto market then saw a wipe-out of more than $27 billion and the market extended losses throughout the past two days.
The talks about XRP ‘flippening’ the Bitcoin came along as Twitter user called “The Ripple Shadow” tweeted an interesting message saying:
Screenshot this, retweet this, like this. Do whatever you want with this. Here we go…
Before EOY, XRP will be #1 for market cap. No riddles, straight up message. Big things are right around the corner…#xrp #XRPthebase #XRPcommunity #Ripple #ripplenet #xrpthestandard pic.twitter.com/qXd1ba2Npz
— Crypto Godfather (@GodfatherCrypt) November 17, 2018
Also, the CEO of Binance in his Tweet noted the strength of the XRP community, and asked its brethren to send him their best pitches for why he should pair every coin on the exchange with the digital asset.
He was also responding to suggestions from the XRP fans who believe that doing so would help cushion most altcoins from Bitcoin’s volatility. Additionally, an XRP base currency would allow cheap and efficient movement of value between exchanges.
Bitcoin Cash, even with the combined value of Bitcoin Cash SV (BCHSV) and Bitcoin Cash ABC (BCHABC), has fallen by more than seven percent. Subsequent to the fork, the price of BCHABC, the original Bitcoin Cash chain with the roadmap set forth by bitcoincash.org, dropped by more than 15 percent to $250.
Last week, Crypto Rand, a cryptocurrency technical analyst and trader, said that the probability of a $4,800 to $5,000 bottom for Bitcoin (BCH) is increasing.
Both major cryptocurrencies and small tokens have already started to demonstrate independent price movements by breaking its correlation with BTC, a further 12 percent drop from $5,500 to $4,800 what could result in intensified downward movements for cryptocurrencies with lower daily volumes.
The Crypto Dog, another prominent analyst, said that a bottom at $4,800 has become more likely for BTC.
Ran Neuner, host of the TV show “Crypto Trader” on CNBC and founder of OnChain Capital, explained via Twitter that crypto investors should distance themselves from Bitcoin and Bitcoin Cash and invest exclusively in XRP.
“These hash wars show why everyone should get rid of BTC and BCH and just put all their money into XRP.”
I can't tell if this is a joke or not…
— Fuadiansyah (@fuadviking) November 17, 2018
He also made a Twitter poll:
The results of this poll really surprised me – they show we really have a big problem in Crypto. I REALLY thought American Airlines miles would do way better!!! pic.twitter.com/9HsKaFr7Zx
— Ran Neuner (@cryptomanran) November 18, 2018
This has attracted comments both in favor and against. For instance, a tweet from Crypto Bull believes that NeuNer is not serious. The tweet added,
“XRP over BTC, REALLY, what makes BITCOIN special? Not much really other than being the 1st cryptocurrency ever, but that’s enough to keep it around longer than a ripple.”
The truth is, the numbers speak clearly for an investment in XRP. As the Twitter user Christian Schneider stated, the XRP price is very good in comparison to the 17th November 2017 by +113%. Bitcoin, on the other hand, fell by -29%, Ethereum by -46% and Bitcoin Cash by -64%.
Positive developments for Ripple firm and its token have made XRP one of the few cryptocurrencies to make a gain over the past month. It has made over 10% in the last thirty days while Bitcoin and Ethereum have nosedived 14 and 16 percent respectively.
KPMG: Cryptocurrencies Are Still Not Real Currencies
These gains have pushed XRP above $20 billion market capitalization and into second place as Ethereum continues to slide. The crypto twitter-sphere is awash with talk of a ‘flippening’ today as the notion of XRP catching Bitcoin becomes more valid. It still has a long way to go however with a market cap gap of over $75 billion and many observers are commenting in jest.
Accounting giant KPMG last week warned bitcoin and other cryptocurrencies not ready to be classified as real currencies and that using bitcoin as a store of value is a “fool’s errand.”
They noted that there are real problems in the global financial services ecosystem that cryptoassets are looking to address.
“More participation from the broader financial services ecosystem, will help drive trust and scale for the tokenized economy and help the crypto market grow and mature. Examples of crypto use cases Bitcoin, which is becoming an investible asset class like unallocated gold, has the potential to become a store of value that is natively digital, generationally relevant, and an alternative to traditional asset classes.”
KPMG seem to be a great believer in cryptoassets. As said, the staying power of many cryptoassets will be defined by their ability to reduce friction and inefficiencies that currently exist within the global economy. And while volatility is certainly a problem, it is important to recognize that these assets are still fairly immature and will become less volatile as they mature.
There are also significant efforts that are underway across the industry for the creation of what are called stablecoins to address the volatility problem.
Analysts think that XRP needs to be decoupled from Bitcoin which has driven the state of crypto markets since they began. The only way to do this would be for more exchanges to offer trading pairs in XRP in addition to BTC, ETH and stablecoins. Weiss Ratings tweeted that BTC should not dictate the outcome of every single project in the industry.
What's it gonna take for #XRP to decouple from #BTC? Simple: XRP-based trading pairs. The sooner we add more diversity to the crypto space, the safer we'll all be. #Bitcoin shouldn't dictate the outcome of every single project in this industry. #Binance, are you listening?
— Weiss Crypto (@WeissCrypto) November 16, 2018
Bitcoin – A Calm Before the Storm?
Mainstream media, renowned economists and other crypto critics have killed Bitcoin more than 300 times since its launch. But the digital currency always come back from the dead.
The latest Bitcoin crash was more intense presumably because of analysts. Almost every prominent Bitcoin bull had pushed $6,000 as an unbeatable bottom. Miners recognized it as break-even level based on their return on investments.
However, the market can extend its selling action, for the correction appears weak. In short, BTC is bleeding and in need of blood bags.
Bitcoin bull Tom Lee almost doubled down his price prediction for the digital currency, from a whopping $25,000 to a modest $15,000 by the end of this year. Whether the market will be able to recover to a five-figure value cannot be known yet, but it certainly has enough going on in the background.
The possibility of XRP hitting 400% growth and overtaking Bitcoin’s market cap of $97 billion does seem somewhat unlikely. That would require XRP to hit a coin price of $2.50, while BTC would have to remain anchored to its current valuation.
Positive Aligments for BTC Market in Sight
Over the past 24 hours, more than $14 billion has been wiped out of the crypto market as Bitcoin (BTC) dropped by five percent. Bitcoin, the most dominant cryptocurrency in the market in terms of price, market cap, and volume, demonstrated the smallest loss out of all major cryptocurrencies. Bitcoin Cash (BCH), Ethereum (ETH), Ripple (XRP), Stellar (XLM), Litecoin (LTC), EOS, and many other cryptocurrencies recorded losses in the range of 7 to 15 percent.
Cryptocurrencies have been in a bear market since January 2018 and have not initiated a proper mid-term recovery since then.
There are several positive developments lined up for the BTC market including the BTC futures market launch by Bakkt and ICE, the parent company of the New York Stock Exchange.
Dissimilar to existing futures markets operated by CME Group and CBOE, Bakkt physically delivers BTC to its buyers and as such, Bakkt could have a real impact on the supply of BTC and ultimately, its price.
“ICE entering crypto feels like a big deal. It’s an established, respected & powerful player in the finance industry. In other words, large institutions trust ICE with their money, including those institutional investors who many people think are key to the next bull run. Also noteworthy is the fact that Bakkt will custody & deliver real bitcoin. That means institutional inflows would reduce supply & thus (maybe) increase price too,” said Jake Chervinsky, a government enforcement defense and securities litigation attorney at Kobre & Kim LLP.
To learn more about Ripple, the company, and XRP, the cryptocurrency, please check our awesome guide.