Why Only XRP Price Surge Amid Crypto Market Decline?
As Bitcoin bulls remain sidelined, XRP emerges as the sole major cryptocurrency in the green, highlighting its resilience amid a broader market downturn. This article delves into the recent market movements, the factors influencing these changes, and the outlook for major cryptocurrencies.
Bitcoin and Market Performance
Bitcoin (BTC) saw a 2.3% drop over the past 24 hours, erasing Thursday's brief gains following the latest U.S. CPI readings. The core CPI for June rose by 3.3% against an expected 3.5%, initially appearing bullish for risk assets like cryptocurrencies. However, this turned into a classic "buy the rumor, sell the news" scenario, with prices having been driven up in anticipation of the positive report, as noted by analysis firm Santiment.
BTC briefly traded above $59,000 on Thursday but fell to $57,000 by Friday afternoon in Europe. Major tokens followed suit, with Ether (ETH) and BNB Chain’s BNB dropping by 1.3%, and Solana’s SOL and Dogecoin (DOGE) losing up to 3%.
The CoinDesk 20 (CD20), a liquid index of the largest tokens by market capitalization, fell by 2.48%, reflecting widespread losses across the market.
External Influences on XRP Price
Some market participants attribute the current price lull to sales pressure from the defunct exchange Mt. Gox and the German state of Saxony. Market analysts noted that potential buyers are staying on the sidelines due to the overhang of sales, particularly from German authorities actively selling previously confiscated Bitcoins.
They emphasized that gains in major tokens are unlikely until Bitcoin significantly moves higher. And they suggested that an altcoin season could only begin when the largest coins, like Bitcoin, reach all-time highs and appear overvalued.
Why XRP Price Surge?
XRP price stood out as the only major cryptocurrency in the green, gaining 5% in the past 24 hours. This XRP price surge followed the announcement by traditional futures powerhouse CME and CF Benchmarks about the debut of indices and reference rates for XRP. Brad Garlinghouse, CEO of Ripple, the blockchain payments firm closely related to XRP, noted that this development could boost institutional adoption.
The German state of Saxony transferred over $600 million worth of BTC to exchanges on Thursday, one of the largest moves in weeks. Arkham data revealed that more than 3,000 BTC were moved to various exchanges and OTC trading firms in early Asian hours on Friday, leaving just over 6,000 BTC in its wallets, worth approximately $340 million at current prices.
With these numbers, what will be the future for XRP price and other major Altcoins?
