One day after the Bitcoin (BTC) hard fork, there was a sudden outflow of money into fiat currency. Unfortunately, this drainage hurt more than just Bitcoin—it damaged altcoins like Ripple (XRP) as well.
The overall market cap of cryptocurrencies fell from $169.4 million to $164.0 million in a matter of 24 hours.
At the same time, the Ripple to USD exchange rate dropped 3.8% to $0.204260. Meanwhile, the Ripple to Bitcoin rate dropped by a smaller margin, falling 1.02% to 0.00003708 BTC.
Daily Ripple Chart
As bad as this may look to the untrained eye, it’s quite common to see cryptocurrencies swing this much in a few hours, let alone a full day. It’s also quite normal for altcoins to swing dramatically over news that has little to do with them. After all, Bitcoin is the marquee name of cryptocurrencies; its internal struggles cast a shadow over the entire industry.
Novice investors that bought on a whim flee at the first sign of trouble, because to them it looks like a bona fide crash. Little do they know that cryptocurrency volatility is what makes the industry such a profitable corner of the investment world.
In any case, the drama of Bitcoin’s fork is driving Ripple news this week, but how long can that truly last? Sooner or later, the currency’s underlying strength will likely rise to the surface.
Realistically, investors should focus on Ripple’s client-base, which is 100 strong right now. This rapid pace of adoption is likely to accelerate considering that Ripple opened an office in Singapore (which is a major banking hub, for those who don’t know).
Regardless of the volatility caused by Bitcoin’s incessant troubles, we believe that XRP is still ascendant. The ride to our $2.00 Ripple price prediction will not be smooth, by any means, but it is still the eventuality that is most likely.