TODAY: Prices: Bitcoin (BTC) $6,291 (+7%) | Ether (ETH) $131 (+5.3%) Why traders love XRP, but not for the long term Market news and analysis, including a radical rethink of money After the March 12 crash, when crypto traders decided to Drop it Like it's Hot, we've been looking at various assets and performances versus bitcoin.
Today, let's look at XRP against bitcoin. Here's how someone would have done investing $10,000 on Jan. 1, 2019:
As usual, bitcoin performs better than XRP – that was also the case with litecoin and ethereum, both of which we delved into last week.
XRP is another fun one to look into.
The San Francisco-based Ripple Labs invented the whole XRP thing way back in 2012 as a bitcoin competitor, even though these days they'll often try to deny it. That's because of ongoing legal issues looking into whether or not XRP is a security. Regardless, many traders delight in the follies of XRP. This is especially true in 2020, as the asset is about as volatile as you can get.
Firstly, there's the XRP crash on the MEX – derivatives exchange BitMEX – back in February. I wrote about it on first my week back at CoinDesk.
A story about XRP? Crashing on BitMEX? It was almost as inevitable as BitMEX CEO Arthur Hayes tweeting about it.
What Hayes is implying is something many traders already know: Making money off XRP is more reliant on short-term trades. Look at the volatility of this asset in 2020 put together by CoinDesk Research:
And check out these daily ranges for XRP in March:
When the CEO of one of the top cryptocurrency derivatives exchanges labels a digital asset something, he's probably right. XRP is a short-term play on volatility.
Because you never know when the XRP-associated social media apparatus to manipulate thinking – the "XRP Army" – might raise its ugly head.
You also never know when Ripple Labs CEO Brad Garlinghouse will call for a grocery store-style price check on XRP when long-term investors like Galaxy Digital's Mike Novogratz says it sucks.
Always know, however, that somewhere there's an XRP clown car loaded up, ready to ride.
– Daniel Cawrey, Markets Editor (dcawrey@coindesk.com)
Some Bitcoin and Ether Traders Take Wait-and-See Approach
The U.S. market close Friday saw many crypto traders in a holding pattern. Not much longer after that, though, bitcoin dropped below $6,000 levels. “Some people I respect say gold is a buy here,” said Rupert Douglas, head of business development for institutional sales at Koine, a digital asset manager. “Perhaps it is, perhaps silver is going to go rocketing higher, but if it doesn't and trades lower, does bitcoin follow?”
Splinter Cryptocurrency Hive Outperforms Justin Sun’s Steem "This is a true show of how a community can’t be bought," Dan Hensley, a major holder of steem, and now hive, told CoinDesk. To very quickly recap this saga: Steem is a public blockchain largely launched by Steemit, the company, which ran the user interface that made it known as a blockchain for bloggers. Steemit owned enough steem tokens to influence governance, but it never exercised them – but Justin Sun certainly has tried. Hive was the community's escape plan.
Investors Regained Confidence in Bitcoin Amid Price Recovery
Bitcoin may not be out of the woods yet, but prospects of another sudden price crash now look to have diminished. There are concerns the cryptocurrency remains vulnerable to another liquidity crisis in the global markets, but any decline is likely to be more measured than the violent price drop of nearly 40 percent seen on March 13. That's because the average of the number of transfers to exchange addresses has fallen.
Some Hoard Dollar Bills, Others Envision Cash’s Quick Demise This wrecking ball of a virus stands to change the way consumers, and businesses, think about their use of physical currency. In many countries, cash is already on the margins: for example, Sweden, whose central bank is actively examining digital alternatives. Cash is slowly receding from American life as well, though not as dramatically as it has for the Swedes. Strange Days: S&P 500 Volatility Enters Bitcoin Territory
In a role reversal befitting these topsy-turvy times, Wall Street has recently seen turbulence more familiar to bitcoin, the top cryptocurrency. The S&P 500’s 30-day volatility of daily returns, or historical volatility, has jumped. Meanwhile, bitcoin’s (BTC) volatility gauge stood at 138 percent on Wednesday compared to the average volatility of 65 percent seen a year ago.
After Coronavirus ‘War,’ a Bretton Woods-Style Shakeup? With officials starting to envision what it might take to rebuild damaged economies and restore society to a semblance of normal, speculation is mounting that seismic shifts might be in the offing for the global monetary system – a phenomenon that historically has occurred in the wake of world wars. Think Bretton Woods, the historic gathering in 1944 at a mountaintop resort in New Hampshire, which set the template for the current system. LISTEN: No More Violent Bitcoin Drops?
Hosts Adam B. Levine and John Biggs talk about analysts believing there won't be another violent bitcoin price drop like March 12, miners selling more coins than they generate and Venezuela's crypto dealings.
LISTEN: Deep Dive into MakerDAO
An in-depth look at how the MakerDAO DeFi stablecoin actually works and what happened during the sudden, precipitous drop in crypto prices earlier this month.
Tweet of the Day
Does Batman trade on Binance? One of the top replies to this tweet: A fold-up office space in Shanghai. |
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BTC: Price: $6,291 ( BPI) | High: $6,344 | Low: $5,858
Trend: Bitcoin has been quite volatile in recent weeks and has closely tracked the equity markets, which have seen sharp moves in both directions. The cryptocurrency, however, seems to have decoupled from stocks on Monday.
The top cryptocurrency by market capitalization found bids near $5,850 around midnight UTC and is currently trading near $6,290, representing a 7-percent gain on the day. Notably, the cryptocurrency is better bid despite the decline in the global equity markets and gold.
The MSCI Asia Pacific index ex-Japan fell by 0.3 percent early on Monday, while stocks in Japan declined by 1.57 percent. European equities are also trading in the red at press time, alongside moderate losses in the S&P 500 futures. Gold is trading down near $1,620 per ounce.
The renewed risk-off mood seems to have been triggered by fears that the recently introduced stimulus efforts across the globe may not be enough to buffer the global economy from shock of the coronavirus outbreak, which is showing no real signs of slowing down in the US and Europe.
With bitcoin establishing its third higher low near $5,850 on the daily chart amid the losses in equities, some investors have turned bullish and are expecting a rise to $7,000. The cryptocurrency, however, is yet to take out the resistance of the descending trendline on the hourly chart and is holding below the 200-hour average at $6,400.
A convincing move above that level would strengthen the odds of a rise to $7,000. Alternatively, a drop below $6,000 would expose the Asian session low of $5,850.
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| | | | Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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