Joe Weisenthal, the co-host of Bloomberg's "Odd Lots" podcast, has observed that significant XRP price spikes tend to mark a local top for Bitcoin.
On Jan. 16, the price of XRP reached a new record high of $3.40 on the Bitstamp exchange following a tremendous headline-grabbing price rally in the fourth quarter of 2024.
Bitcoin reached its current peak of $108,786 on Jan. 20, fueling broader market optimism.
XRP has since plunged by a whopping 47% from its record peak. The correction can be partially attributed to dissipating enthusiasm surrounding the SEC's pro-crypto U-turn and plunging retail interest.
The token is also highly correlated with Bitcoin, which in turn tends to trade in lockstep with U.S. equities when it is in risk-on mode.
Last week, Bitcoin showed some impressive resilience despite the historic stock market crash. However, the cryptocurrency eventually succumbed to selling pressure on Sunday, plunging below the $80,000 level. It is currently trading at $76,896, according to CoinGecko data.
Is Bitcoin already in bear market?
As reported by U.Today, CryptoQuant CEO Ki Young Ju recently stated that Bitcoin is already in a bull market based on the fact that the cryptocurrency's market cap remains stagnant despite growing realized cap. This means that even large purchases cannot push the price higher due to strong selling pressure.
Meanwhile, financial commentator Peter Schiff has predicted that Bitcoin and other cryptocurrencies will continue plunging lower. "None of the tokens have any real value, including Bitcoin. That's why they're all headed much lower," he said.
Dan Burgin
U.Today Editorial Team
