Ripple prices are upbeat once more as trading volumes continue to grow, powered, as ever, by cryptocurrency trading desks in South Korea.
For instance, trading volume on Bithumb—a leading Korean exchange—accounted for 53% of all XRP trades. Once you add in two other XRP/KRW exchanges, Korbit and Coinone, it becomes clear that 70% of XRP trading demand is dependant on South Korea.
The Ripple to USD exchange rate is up roughly 1.7% as new money flows into the cryptocurrency market. However, the Ripple to Bitcoin rate is down around 2.59%.
In a way, Ripple’s weak performance against Bitcoin foreshadows immediate potential for XRP prices. New investors are more likely to go for marquee names, such as Bitcoin and Ethereum, than they are for Ripple. Which means that, of course, Bitcoin is accumulating gains now.
XRP is completely unknown outside crypto circles and, more to the point, humans are irrational.
Most people buy high and sell low when it should be the other way around. That simple truth is why Warren Buffett’s maxim of “be greedy when others are fearful, and fearful when others are greedy,” is the single greatest piece of investment advice. It is always true.
That’s why it is important to understand that fresh money seeks safety while old money seeks a return any and everywhere. It seems counterintuitive, but it happens to be true. Imagine that new money lands on Bitcoin, then rotates out to the rest of the industry over time.
Nowhere is this phenomenon more apparent than in South Korea. Its trading desks made a fortune on Bitcoin and Ethereum, and are now lending major support to altcoins.
Daily Ripple (XRP) Chart
Traders make money on swings, which means that XRP is not on a straight rocket ride to our $2.00 Ripple price prediction. There will be tons of volatility. However, that shouldn’t matter to the long-term investor, because it matters less how you get there than that you actually get there.