Is Ripple moving with Bitcoin?
Recently, Ripple seems to be moving with Bitcoin. However, the correlation between Bitcoin and Ripple price movements has been a hot topic since 2018.. Really How independent are XRP price movements from Bitcoin?
Ripple tracks Bitcoin price action
A correction was expected in Bitcoin as price volatility and volume have dropped significantly over the past few days. However, such a big drop before the halving shocked the market.
Bitcoin’s pre-halving drop also affected the entire market.. Bitcoin’s parabolic rise is over and all cryptocurrencies have lost a lot of value along with Bitcoin.. Even those who are claimed to act independently of the market’s ruler, such as Ripple.
See: What is Ripple? Where and how to buy XRP? What is Ripple’s future?
How the two relate to price action is an often debated topic.. While alternative cryptocurrencies, altcoins, follow the price movements of Bitcoin; Especially in 2018, Ripple acted according to its head.
How independent are XRP price movements from Bitcoin?
Bitcoin fell 15% in just one day before halving. And the collapse in BTC had a ripple effect on all cryptocurrencies, including XRP..
Yesterday morning, Bitcoin (BTC) dropped from $9,600 to $8,100. The sudden drop of the biggest cryptocurrency also had an impact on Ripple price movements.
For example; Ethereum dropped from $210 to $179 in just a few minutes. Mass selling pressure also affected XRP, which was previously claimed to act independently of Bitcoin.. top 3. The token was withdrawn from the $0.214 support level to $0.177 in the hours when BTC crashed.
How much is the correlation between XRP BTC?
According to the Coinpredictor team, the value of the correlation between XRP and Bitcoin is 0.30.
This value is determined on a scale of -1 and 1. The second value (1) here shows the strongest correlation with BTC.
XRP falling below $0.20 shows that it cannot act independently of Bitcoin.. And it also proves that the divergence between Ripple price movements and Bitcoin has not happened yet.
XRP cannot yet act independently of the market
From the value associated with XRP, it is the favorite token of the remittance markets. We can conclude that it has less correlation with Bitcoin compared to other cryptos such as Tezos, which has a value of 0.84.
However, as can be seen from this latest dream, XRP has not yet It cannot act separately from Bitcoin.
See: Ripple price rises or falls?
(While preparing our article for publication, XRP is trading at $0.194 with a decrease of 2.55%. .)
Actually, the correlation between Bitcoin and Ripple price movements has been a hot topic since 2018.. In May 2018, Ripple CEO Brad Garlinghouse said in an interview with CNBC that there is a high correlation between the two assets.
“There is a very high correlation between XRP price movements and Bitcoin price. But ultimately these are independent open source technologies.. It’s too early now; Over time, you will see a more rational market and price movements that reflect it.”
In the same interview, Garlinghouse stated that the correlation between the two would soon end completely.
“It’s only a matter of time before that happens… Because people see problems solved by different digital assets. And he now understands better that they have different use cases.”
However, it’s been almost two years since the famous CEO’s CNBC interview and XRP has yet to leave Bitcoin.
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