TL;DR
- Bitcoin Surge: Bitcoin’s price exceeds $41K, up over 10% since December 1st, potentially signaling an altcoin season and influencing Ripple (XRP) prospects.
- Ripple’s Performance: XRP’s modest increase to $0.64, with a 5.4% gain since December 1st, contrasts Bitcoin’s rise; increased derivatives market interest hints at future volatility.
- Influencing Factors: Ripple’s price may be impacted by the December 13th FOMC meeting and specific catalysts like company developments, the ongoing SEC lawsuit, and IPO speculation.
Bitcoi
Bitcoin’s price is kicking off December with a bang. It’s up over 10% since December 1st, and it’s trading above $41K for the first time in 19 months.
Many analysts seem to believe that there’s an altcoin season brewing now that Bitcoin’s price has increased so much, and an interesting question is if Ripple (XRP) will be able to follow in its lead. There are multiple factors to consider, so let’s dive in.
Ripple’s Price So Far in December
At the time of this writing, XRP is trading at $0.64, up 3.3% in the past 24 hours and 5.9% in the past seven days.
Since December 1st, the cryptocurrency gained some 5.4%. It’s obvious that XRP is being outperformed by BTC, which is up around 10% over the same period (since Dec 1st).
In terms of the derivatives market, XRP’s open interest has been increasing throughout the past few days, indicating the possibility of enhanced volatility going forward.
Factors to Consider in December
There are some universal, so to speak, market factors that will likely have an impact on the performance of the entire industry.
As CryptoPotato reported during the weekend, the FOMC meeting will take place on December 13th in the US. During this event, the Federal Reserve will determine whether or not to hike interest rates. The consensus, at the time of this writing, seems to be that they will leave the rates unchanged.
This is perhaps the reason why risk-on markets such as cryptocurrencies are currently on the increase. Investors seem unfazed by the upcoming FOMC meeting.
However, if the Federal Reserve decides that it’s time to continue hiking rates, this might impact the market negatively, putting a halt to the ongoing rally and, thereby, to XRP’s prospects of outperforming BTC.
Ripple-Specific Price Catalysts
It’s important to understand that, albeit part of the broader market, Ripple is a company on its own. As such, there is the possibility of isolated catalysts that could drive the price of XRP upwards. For instance, if Ripple announces an exciting partnership or releases a major update of its product kit, this could have a positive impact on the XRP price.
Additionally, the ongoing case between the company and the United States Securities and Exchange Commission is a huge factor in the price of the asset.
Any positive development in this regard is likely to have a positive impact. There is a lot of speculation about a potential Ripple IPO (initial public offering) as well.
In essence, there are multiple project-specific potential catalysts that could boost XRP’s price as we enter the last month of 2023.
The post Will Ripple (XRP) Price Follow the Bitcoin Bull Run in December? appeared first on CryptoPotato.
#CryptoBits #CryptoNews #Bitcoin(BTC)Price #Ripple(XRP)Price [Source: CryptoPotato]