The Bitcoin exchange rate can by no means complain about a meagre growth and has jumped above the 19,000 US dollar mark. Meanwhile, the Altcoins are gaining ground – especially Ripple (XRP). The market update.
The Bitcoin exchange rate has cracked the 19,000 US dollar mark. At the time of going to press, BTC is thus trading 1.7 per cent above the level of the previous day. On a weekly basis, the largest crypto currency in terms of market capitalisation grew by around 13 per cent, while Bitcoin rose by 44 per cent on a monthly comparison. Meanwhile, top Altcoins such as Ripple (XRP), Ethereum (ETH) and IOTA (MIOTA) have entered a veritable old season.
Bitcoin (BTC) can no longer be stopped and is approaching its all-time high
Punctually at 8 o’clock in the morning, the Bitcoin course also seemed to have awakened and started to pick up in leaps and bounds. For a short time at 11 a.m. it was able to break through the 19,000 US dollar mark. The market mood is extremely heated and more and more investors seem to be jumping on the Bitcoin bandwagon. Nevertheless, it should not be forgotten that this time it was the institutional investors who first entered the crypto-market. Several factors are therefore likely to come together to fuel the current Bitcoin rally.
In addition to institutional investors such as Microstrategy, Grayscale and Square, PayPal is also driving demand for Bitcoin. According to the company, the demand for its crypto service has been exceeded two to three times. Bitcoin Trader also appears to be catching up. Finally, Bitcoin Halving in May cut Bitcoin’s Block Reward by half. In the previous Bitcoin Halvings, this led to an enormous rally a few months later. After all, if demand remains constant, the price has to rise when the supply quantity falls.
Ripple (XRP) runs away from everyone
At the moment, the Ripple Asset XRP is causing a particular stir with its outbreak after months of cancer. With the sustained breakthrough of the massive resistance at the USD 0.3 mark on 20 November, the Ripple price has set the course for further gains. The XRP train has been heading north at a rapid pace ever since. At the time of writing, the ripple rate is already gnawing at the 0.7 US dollar mark – almost 200 percent above the previous year’s level.
Why is the ripple rate (XRP) rising?
There are several possible explanations for the rapid rise in the XRP price. On the one hand, the XRP purchases announced by Ripple may have fuelled the recent price increase. For example, in its XRP Markets Report on November 5, California-based FinTech reported that it was buying XRP units to „support healthy markets“.
The XRP purchases are related to Line of Credit, a new financial service offered by Ripple to corporate clients. Under this service, corporate customers borrow from Ripple XRP to make cross-border payments. Ripple has provided liquidity by purchasing XRP for a total of $45.5 million in the third quarter. However, the liquidity for the XRP loans is expected to come from the market in the long term.
The credit line beta is an application of Ripple’s On-demand Liquidity Solution (ODL). In contrast to Ripplenet, which only connects partner banks for the exchange of information and not for the settlement of transactions, XRP is used in the ODL. To date, considerably more Ripple partners use the RippleNet than the ODL. These include the money transfer service provider Moneygram, in which Ripple became a shareholder in June 2019.
Central bank rumours and the Ripple course
Since XRP is primarily positioned as a coin for interbank trading, a job advertisement by Ripple has made the XRP Army sit up and take notice. The FinTech is currently looking for a manager for the cooperation with central banks. Amongst other things, it is intended to develop a „strategy for central bank engagement in partnership with Ripple in the areas of products, technology, regulatory relations and marketing with an initial focus on developing a CBDC strategy“.
Water to the mills of the XRP bulls, who like to postulate Ripple Coin as the future „standard“ of the financial world.
Coinbase crashes – no more XRP?
On the US Bitcoin stock exchange Coinbase, the XRP price was quoted above 0.9 US dollars in the early hours of the morning – only to crash back to the 70 cent level shortly afterwards.
However, it seems that XRP transactions in particular have experienced problems.
„I am also in limbo because my XRP was not credited to me and it says that my transaction was cancelled, but the money was taken out of my USD wallet. The money has disappeared!
In the hope that this is a disruption and not something more serious….. please reply if this has happened to you too…“
writes a shocked user on the website Downdetector.com. And is apparently not alone: Other users report aborted trades in the trading pairs XRPUSD, USDETH, XRP/DAI and others. The suspicion suggests that Coinbase has reached the limits of its capacity – possibly also that of its XRP liquidity.
Coinbase CEO Armstrong did not report until 19 November that the stock market was overburdened by the Bitcoin bull run:
„We are working hard to create additional capacity (both in terms of servers and customer support) to cope with the increased traffic. We thank you for your patience during this period. And many thanks to the team at Coinbase who work hard to serve our customers. Bull Runs can be exciting and stressful“.
This is probably what those Coinbase users who are currently waiting for their money are signing up for.