Bitcoin reached $19,000 immediately after the drop to $18,000 following the XRP flash crash on Coinbase
On November 24th, the price of Bitcoin (BTC) exceeded $19,000 for the first time in almost three years. The decisive rise came following a flash crash of XRP on Coinbase that shook the crypto market.
Perhaps the two events are just a coincidence. But considering that the price of Bitcoin rose almost immediately after the XRP correction, there could be a correlation.
XRP may have triggered Bitcoin’s rise to new highs.
As reported on 24 November by Cointelegraph, the price of XRP gained almost 80% in 48 hours. During the increase, the hype around cryptocurrency continued to intensify.
Interest in cryptocurrency has reached a point where it has overwhelmed Coinbase, the largest cryptocurrency exchange in the United States.
Joe Weisenthal, co-host of What’d You Miss on Bloomberg TV, pointed out that Coinbase has ended up in the Trends section on Twitter. The peak of interest in Coinbase materialised when the price of XRP began to rise. Weisenthal commented:
„Cryptocurrency Ripple has gone completely crazy in the last few days. Coinbase has just become a trend on Twitter, and all the tweets about it are people talking about buying it.“
The problem arose when XRP had a flash crash after touching $0.90 on Coinbase. The crash caused extreme market volatility in a short period of time. Bitcoin slipped around $18,000, while ETH dropped to $585.
Although it is difficult to conclusively demonstrate this, trends suggest that the flash crash pushed the algorithms to cause high volatility. The price of Bitcoin Hero review bounced sharply from $18,000 to $18,500, and in a few hours it exceeded $19,000.
When Bitcoin plunged to $18,000 within minutes, it may have hit a bidding zone. In other words, it may have hit an area with significant liquidity, causing many purchase orders to be executed.
What will be the next move?
In the short term, traders and analysts predict that Bitcoin will continue the uptrend and approach its historical high.
An investor known as „Blackbeard“ has pointed out the lack of inflows into exchanges despite BTC’s arrival at $19,000. This indicates that sales pressure on the main cryptocurrency is still relatively low:
„Even though BTC’s price is above $19,000, I don’t see any unusual numbers of inflows into cryptocurrency exchanges. Honestly, that makes me optimistic.“
Before the breakout over $19,000, trader „Salsa Tekila“ predicted the rise, saying that when the altcoins calm down, profits are likely to return to BTC:
„BTC has been stalled for a couple of days, while money is pouring into the altcoins. It’s not bearish for BTC. We are consolidating for a while before the $19,000. Realistically, I think we’re going to break the damn level. When? Probably when the altcoins calm down and people are selling to get back into Bitcoin.“
It is very likely that this trend, in which the profits from altcoins return to Bitcoin, will continue in the short term. In that case, the altcoin market may move sideways while BTC is riding a strong momentum.