Bitcoin exchange rate now moving towards 20,000 US dollars after XRP shock
Bitcoin quickly climbed to $19,000 after falling to $18,000. Previously, the XRP on Coinbase rose sharply and collapsed.
On November 24, the Bitcoin (BTC) price rose to over $19,000 for the first time in almost three years. This was followed by an XRP flash crash on Coinbase, which Bitcoin Loophole caused an uproar in the crypto market.
It could be a coincidence that these two incidents happened one after the other. Considering that the BTC price rose almost immediately after the XRP decline, there could be a correlation.
XRP rally may have led to new highs for BTC
As Cointelegraph reported on 24 November, the XRP price rose by almost 80 percent in 48 hours. As the rally progressed, the hype surrounding the crypto currency grew.
Interest in the crypto currency reached a point where it became too much for Coinbase, the largest crypto currency exchange in the United States.
Joe Weisenthal, the co-host of the Bloomberg TV show What’d You Miss, emphasized that Coinbase had triggered a trend on Twitter. The rise in interest in Coinbase occurred as the XRP price gradually rose. He commented:
„The crypto currency Ripple has gone completely crazy in the last few days. And Coinbase is on Twitter at the moment in the trends. Everyone is talking about buying it.“
Problems arose when XRP collapsed after it reached $0.90 on Coinbase. That caused extreme volatility in the market within a short period of time. Bitcoin plummeted to around $18,000, while ETH fell to $585.
Although it is difficult to prove this, market trends indicate that the flash crash led to high volatility in algorithms. The Bitcoin exchange rate quickly rose from $18,000 to over $18,500 and finally rose to over $19,000.
When Bitcoin dropped to $18,000 within minutes, a bid zone was probably reached. In other words, it could have fallen to an area of considerable liquidity, resulting in many buy orders being executed.
What is the next step?
In the near future, traders and analysts expect Bitcoin to continue its upward trend as it approaches its all-time high.
The investor named „Blackbeard“ pointed out the lack of inflows into the stock market, even though the BTC price reached $19,000. This indicates that the selling pressure on the largest crypto currency is still relatively low. He said:
„Even though the BTC price is above $19,000, there is no unusual inflow to the crypto exchanges. This makes me honestly optimistic“.
Before the breakout over 19,000 US dollars, another trader called „Salsa Tekila“ predicted the rally. He said that when the Altcoins cool down, the profits would probably flow back into BTC.