Bitcoin (BTC) and Ripple (XRP) Are Consolidating, Crypto Market Rises Due to Altcoins

Bitcoin (BTC) and Ripple (XRP) Are Consolidating, Crypto Market Rises Due to Altcoins

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As it was predicted by some analysts, after soaring to ATH about $67K, bitcoin entered the correction area. Now the forecast for bitcoin allows for a deeper correction up to a trend reversal. But due to altcoins, the market continues to grow.

Bitcoin corrected below the starting point of rising (about $60K), that is, more than 10%. According to experts, the crash on the Binance.US exchange became the trigger for that dropping. An institutional trader made a mistake in the algorithm, which caused bitcoin to collapse by almost 90% for a short time. This has forced traders and investors to pay their’s attention to other cryptocurrencies with better blockchain technology. As a result, the share of bitcoin began to decline. But the capitalization of the cryptocurrency market continues to grow. The beneficiaries, in this case, are large-cap altcoins, including Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), Solana (SOL), Terra (LUNA), and others.

Meme-coin Shiba Inu (SHIB) with good functionality showed the highest growth. Unlike the kidding Dogecoin (DOGE), the Shiba Inu cryptocurrency is developed by a strong well-motivated team. Its growth amidst a positive decision by the American regulator is happened due to good technical and economic solutions. SHIB has grown by almost 30%, and since the beginning of the year, the price of the coin has increased by 1250%.

In early October, SHIB grew thanks to a tweet from Elon Musk, after which the whales began to buy this asset. However, the coin plummeted 27% yesterday when Musk announced that he did not hodl SHIB. Nevertheless, according to forecasts, SHIB may continue to rise to at least $0.000052.

There is another explanation for the drop in BTC. It is highly likely that some of the big funds that bought bitcoin in May during the previous boom cycle are now fixing the profit. They are scared by the BTC’s high volatility. In this case, the BTC price may go down to the $53K- $54K levels. But even this drop will not become a trend reversal point. As the history of bitcoin proves that a fall within 20% is still a correction. Any important event can put BTC back on a growth trajectory. Such an event could have been the approval by the regulator of other applications for bitcoin futures ETFs from VanEck and Valkyrie Investment. But it did not.

XRP is one of the altcoins that did not take advantage of this situation. The reason is the protracted situation in the SEC lawsuit against Ripple. Speaking at the DC Fintech Week conference, Ripple CEO Brad Garlinghouse accused the regulator of unfair treatment of XRP. In his opinion, the head of the SEC patronizes Ethereum. For this reason, ETH has grown by more than 450% since the beginning of the year, and XRP has so far failed to update its all-time high since 2018.

Ripple’s CEO remains silent about the fact that XRP differs from other cryptocurrencies that operate on blockchains. XRP runs on Ripple’s own distributed ledger and can technically be controlled from a single center. That is why the SEC considers XRP to be security and its value is determined not by the market, but by the issuer. Therefore, the likely court verdict in favor of Plaintiff does not mean pressure on cryptocurrencies in the United States. Investors don’t have to worry.