XRP Falls Behind in the Crypto Market
After its legal victory, Ripple’s XRP cryptocurrency has lost most of its gains against other digital assets. The XRP/BTC price ratio has returned to its pre-July 13 level, when XRP experienced an 80% rally against Bitcoin within a week.
Reality Check for XRP
In July, a US district judge ruled that XRP sales on the secondary market were not securities transactions and that the asset did not meet the legal threshold of an investment contract. This ruling allowed exchanges like Coinbase and Gemini to resume trading XRP. However, the hype around XRP has faded, causing its price ratio to reach one of its lowest levels this year at 0.00001516 BTC.
Bitcoin’s Dominance Grows
Bitcoin’s dominance over other cryptocurrencies has increased throughout the year, now comprising 53.9% of the total crypto market cap. Bitcoin’s historical trend of lower volatility compared to altcoins has contributed to its success.
Bitcoin Outperforms Rivals
Bitcoin’s outperformance can be attributed to various factors. In March, amid US bank failures, investors sought safety in assets like Bitcoin and gold. A similar pattern occurred in October during the conflict between Hamas and Israel. Additionally, BlackRock’s filing for a Bitcoin spot ETF in June boosted investor confidence in BTC’s potential approval by regulators.
An ETF Approval on the Horizon
Both XRP and Bitcoin investors have secured legal victories that may pave the way for further growth. Grayscale won its lawsuit over the SEC in August, while ongoing negotiations between the SEC and ETF applicants indicate a potential approval before January 10.
Hot Take: Bitcoin Continues to Outshine Rivals
Despite XRP’s legal victory, it has struggled to maintain its gains against Bitcoin and other cryptocurrencies. Bitcoin’s dominance in the market has increased, and its lower volatility has attracted investors seeking stability. Factors such as US bank failures and geopolitical conflicts have also contributed to Bitcoin’s outperformance. With the potential approval of a Bitcoin ETF on the horizon, institutional capital is expected to flow into BTC, further solidifying its position as the leading digital asset.
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