Ripple News Update
In an amazing twist that would have seemed impossible a few months ago, XRP is now the “cool kid” at the crypto party. What do I mean? Well, XRP is the only crypto in the top 15 to appreciate in the last 24 hours.
Bitcoin was down 17%, Ethereum dropped 17.5%, and Bitcoin Cash fell 27%. Even recent outperformers like Cardano and IOTA suffered double-digit losses.
XRP prices, meanwhile, shot up 15.15% against the U.S. dollar. This put the XRP to USD rate solidly above $1.00.
Ripple Price Chart:
Meanwhile, the XRP to Bitcoin rate shot up 46.06%, reaching 0.00008518 BTC at the time of writing.
Why is this so strange?
Well, some investors—what I call the “herd money”—treat cryptos as a solid asset class. They paint the whole market with a broad brush, which, in practice, pegs the entire market to Bitcoin’s success or failure.
Put another way, XRP usually falls when Bitcoin falls. That connection now appears to be broken.
Normally, if Bitcoin does well, herd money floods into all the big cryptos.
If things start going south—as they did with the BTC-BCH hard fork or many of Bitcoin’s scaling issues—then herd money disappears back into the world of fiat currencies.
Don’t misunderstand me; seasoned investors understand the differences between various cryptos. But there are many more investors that don’t have a clue what is going on.
They hear about a trend, so they hop onto it.
That is why as the crypto market cap exploded in recent months, so did the amount of herd money entering the market. But this trend only goes so far; all floods slow down to a trickle eventually.
Investors quit the market when they can’t find willing buyers. Money flows from speculative assets to ones with real potential. That’s what we’re seeing right now, except…
…XRP is not falling like the rest.
Investors are respecting its nuanced differences with Bitcoin, which shows that XRP has achieved a new level of mainstream awareness. This is an excellent milestone in Ripple’s journey to reform the international payments market.
Today’s Ripple news update only affirms our bullishness on XRP. We continue to believe that XRP can reach our Ripple price prediction of $2.00 in 2018, though that forecast is looking more conservative by the day.