Ripple News Update
A long, long time ago, in a galaxy not that far away, Wall Street was supposedly gearing up for a “giant short” on Bitcoin futures.
It was considered an open secret; a poisoned arrow that would prick the “Bitcoin bubble” that crypto bears said is on the verge of collapse.
And yet, when the Chicago Board of Options Exchange (CBOE) unveiled its Bitcoin futures contract on December 10, prices shot up by 20%.
This dramatic increase triggered two automatic pauses in trading, one at 10% and another at 20%. Who in their right mind would short an asset capable of such growth in a few hours?
Covering that kind of short would kill traders with even the deepest of pockets. It would border on insanity. And, to make matters worse, it would likely backfire.
My colleague Patrick Brik laid out this eventuality several days ago, arguing that Wall Street could inadvertently create a “synthetic short squeeze of titanic proportions.”
His original report was published on December 7. I suggest you read the report in its entirety to understand what’s happening in the crypto market.
Ripple Price Chart:
How Are Bitcoin Futures Affecting XRP?
At first, uncertainty was painted across the crypto market. Prices were depressed on Saturday and early on Sunday. But then the futures rolled out smoothly, and investors breathed a sigh of relief.
This led the XRP price up 5.32% against the U.S. dollar, bringing the Ripple to USD exchange rate to $0.245850. However, the rally in Bitcoin spot prices was much steeper, causing the Ripple to Bitcoin rate to fall 13.76% to 0.00001466 BTC.
Are Investors Bullish on XRP?
Demand for XRP, meanwhile, was fairly strong. More than $182.6 million worth of XRP changed hands in the last 24 hours, on markets ranging from South Korea to the United States.
The most prominent exchange, Bithumb, accounted for 19.98% of total trading. There were only two other exchanges whose portions stretched into double digits, which means that XRP has grown its base of support.
Until quite recently, more than 70% of its trades took place exclusively on South Korean exchanges. Having that number decrease while keeping overall volumes steady is extremely good news.
If Bitcoin bears had been right, we would have seen a giant collapse of asset prices, not to mention panicked press releases from the CBOE.
We saw neither of those things, which is only one of many reasons why we maintain our $2.00 Ripple price prediction.
Also Read: How Can I Buy Ripple XRP?