XRP’s Relationship with Bitcoin Price
An episode of the CryptoLaw show featured veteran market analyst Raoul Pal discussing the connection between XRP and Bitcoin. This insightful conversation explores the relationships between the broader crypto market, especially with XRP and Ethereum, and how they move in sync with Bitcoin’s price changes.
Predictions and XRP Movements
In the interview, John Deaton, founder of CryptoLaw, highlighted an interesting prediction he made before a crucial July 13 ruling by Judge Analisa Torres. He foresaw XRP surging to $1 but believed it wouldn’t reach new highs until a significant bull run driven by Bitcoin. After the ruling declaring XRP a non-security, it surged to $0.93. However, these gains didn’t last, and in August, XRP retraced as it lacked support from Bitcoin and the wider market.
Influence of Bitcoin on XRP and other Tokens
Deaton asked Pal if XRP and other tokens could move independently from Bitcoin’s influence. Pal responded that such a separation wouldn’t happen. He explained that the Bitcoin cycle acts as the big picture, impacting all assets in the market. He suggested that the combination of the four-year market cycle, economic shifts, and interest rates creates a synchronized environment. In this setup, various assets, including XRP and other altcoins, tend to move together.
Macro Cycles in the Market
Pal introduced the concepts of “Macro Spring” and “Macro Summer” to break down market cycles into distinctive phases. The Macro Spring signifies the initial stages of a bull market, marked by diminishing inflation and stabilized growth. The subsequent transition into the Macro Crypto Summer indicates the onset of the alt season. Commencing with high-quality tokens, this phase gradually encompasses a wider spectrum of cryptocurrencies. Pal anticipates this transition to be in full swing, projecting a surge where “everything goes up ridiculously” by 2025.
Hot Take: Reconsidering the Narrative of Decoupling
Raoul Pal’s perspective introduces a new lens through which to view the relationship between XRP and Bitcoin, urging market participants to reconsider the narrative of complete decoupling.
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