Crypto Market Capitalisation Hits $2.4 Trillion
XRP Bull Run 2020 Halted by SEC While Bitcoin Surges Past $28,000
It’s been a tale of two cryptocurrencies in the last week. XRP Bull Run 2020 came to a screeching halt with the SEC’s lawsuit regarding the currency’s legality, while Bitcoin surged past $28,000 to hit its new all-time high in a record-breaking rally.
The BTC price rally just started before Christmas when it was trading below $23,000 levels and in the next four days, BTC surged 20% to hit its new all-time high of $28,288 on Sunday, December 27.
Although BTC has partially retracted from those levels, it is still holding strong above $27,000 levels. At press time, BTC is trading at a price of $27,004 with a market cap of $502 billion thereby becoming the world’s biggest financial service in the market.
At a $502 billion market cap, Bitcoin (BTC) has surpassed all financial services and banking giants like VISA, PayPal, MasterCard, JPMorgan, Citibank, and many others.
The continued Bitcoin price rally over the last month and through Q4 2020 comes on the backdrop of massive institutional buying taking place. The institutional buying has resulted in a huge supply shortage at the exchanges as the crypto trading platforms have been registering massive outflows most of which are going to cold storage.
If market analysts are to be believed, the Bitcoin (BTC) bull roll isn’t stopping anytime and we will get to see the levels of $30,000 and above in a very short time.
Bloomberg has recently mapped Bitcoin historical data regarding its monthly gains since 2019. Bitcoin gains for December 2020 have already outsized returns for the previous two months of October and November.
Speaking to Bloomberg, Vijay Ayyar, head of business development with crypto exchange Luno in Singapore said: “My sense is we’re very close to a top — we could hit $30,000 though. We should definitely see a pullback, but the magnitude is probably lesser. We might only see 10% to 15% drops.”
Another reason why the correction won’t be sharp this time is that despite the Bitcoin whale coming in huge numbers to the exchanges, the outflows have outsized the deposits. Large exchange deposits hint at major sell-offs triggered by the whales. On the other hand, even higher outflows mean a supply shortage.
BTC Whale Alert
In their analysis last week, the popular cryptocurrency analytics service (CryptoQuant) pushed out a popular BTC whale alert chart. In their analysis, they highlight how “BTC whales seem exhausted to sell. Fewer whales are depositing to exchanges. I think this bull-run will continue as institutional investors keep buying and Exchange Whale Ratio keeps below 85%”.
Another major factor that can support the Bitcoin (BTC) price rally is PayPal’s launch of its crypto trading services. Within only two months of going live PayPal has been buying more than 100% of the new BTC supply. The process to buy Bitcoin with PayPal US’s service has already created significant demand with investors.
Ethereum Price Forecast Signals Growth Towards $740
ETH has followed the Bitcoin price action and has been making strong moves upside. In fact, the Ethereum price forecast for many top analysts project ETH eclipsing $740 in the coming days. At press time, Ethereum (ETH) is trading at $720 with a market cap of $82.3 billion.
With this move, ETH’s year-to-date returns stand at more than 450% outperforming Bitcoin (BTC). However, analysts predict that the ETH journey is just getting started and ETH could possibly make even bigger moves in 2021.
The fact that ETH and BTC are closely related to each other suggests a few interesting things. Analysts think that once the Bitcoin (BTC) rally cools down, the money will flow into Ethereum (ETH).
On the other hand, while Bitcoin makes new all-time highs, ETH is still trading at a 50% discount from its all-time high of $1400. Moreover, on-chain crypto analytics platform Skew suggests the price of Ether relative to Bitcoin (ETH/BTC pair) is at a six-month low.
On the other, ETH continues to make higher-highs and higher-lows on the price chart. Thus, the ETH price is more likely to go above $800 in short term.
Also, analysts expect that institutional money is likely to flow into Ethereum on a big scale in 2021 following the launch of the CME Ether Futures contract in February 2021. The Grayscale Ethereum Trust (ETHE) has registered massive inflows over the past few months with now over $1.7 billion in assets under management.
It looks like the worries for XRP are not ending anytime soon. In a fresh blow, crypto exchange Coinbase announced the suspension for XRP trading starting January 19, 2021.
The Coinbase blog reads: “In light of the SEC’s lawsuit against Ripple Labs, Inc, we have made the decision to suspend the XRP trading pairs on our platform. Trading will move into limit only starting December 28, 2020 at 2:30 PM PST, and will be fully suspended on Tuesday, January 19, 2021 at 10 a.m. PST.
The trading suspension will not affect customers’ access to XRP wallets which will remain available for deposit and withdraw functionality after the trading suspension. We will continue to support XRP on Coinbase Custody and Coinbase Wallet.
The XRP price has collapsed an additional 20% falling below $0.25. At press time, XRP is trading at $0.23 with a market cap of $10.4 billion.
- $51 + 2.4%
- $51 + 2.4%