The Bitcoin price can by no means complain about a meager growth and is jumping the 19,000 US dollar mark. Meanwhile, the Altcoins are increasing — above all: Ripple (XRP). The market update.
The Bitcoin course has cracked the 19,000 US dollar. At the time of going to press, BTC is trading 1.7 percent above the previous day’s level. On a weekly basis, the largest cryptocurrency by market capitalization grew by around 13 percent, while Bitcoin grew by 44 percent on a monthly basis. Meanwhile, top altcoins like Ripple (XRP), Ethereum (ETH), and IOTA (MIOTA) have ushered in a veritable old season.
Punctually at 8 a.m., the Bitcoin price also seemed to have woken up and picked up by leaps and bounds. For a short time he was able to break the 19,000 US dollar mark at 11 a.m. The market sentiment is extremely heated and more and more investors seem to be jumping on the Bitcoin bandwagon. However, it should not be forgotten that this time it was the institutional investors who entered the crypto market first. So there are likely to be several factors that are fueling the current Bitcoin rally.
In addition to institutional investors such as Microstrategy, Grayscale, and Square, PayPal is also generating increasing demand for Bitcoin. According to the company, the demand for its crypto service has been exceeded by two to three times. Furthermore, Bitcoin seems to be catching up. The Bitcoin halving in May had finally cut Bitcoin’s block reward by half. In the previous Bitcoin halvings, this led to a huge rally a few months later. After all, with constant demand, the price must rise when the supply volume falls.
At the moment, the ripple asset XRP is causing a sensation with its outbreak after months of cancer. With the sustained breakthrough of the massive resistance at the US $ 0.3 mark on November 20, the Ripple price set the course for further growth. The XRP train has been traveling north at breakneck speed ever since. At the time of writing, the Ripple rate is already gnawing at the $ 0.7 mark — almost 200 percent above the previous year’s level.
There are several explanations for the rapid rise in the price of XRP. On the one hand, the XRP purchases announced by Ripple could have fueled the recent price increase. The Californian FinTech announced in its XRP Markets Report on November 5th that it was buying XRP units to “support healthy markets.”
The XRP purchases are related to Line of Credit, a new financial service from Ripple for corporate customers. Corporate customers borrow XRP from Ripple to process cross-border payments. Ripple ensured corresponding liquidity by purchasing XRP for a total of 45.5 million US dollars in the third quarter. The liquidity for the XRP loans should come from the market in the long term.
The Credit Line Beta is an application of the On-demand Liquidity Solution (ODL) from Ripple. In contrast to Ripplenet, which only connects partner banks for the exchange of information and not for processing transactions, the ODL uses XRP. So far, significantly more Ripple partners have used RippleNet than ODL. They include the money transfer service provider Moneygram, in which Ripple joined as a partner in June 2019.
Since XRP positions itself primarily as a coin for interbank trading, a job advertisement from Ripple made the XRP Army sit up and take notice. FinTech is currently looking for a manager to work with central banks. Among other things, a “strategy for central bank engagement in partnership with Ripple in the areas of products, technology, regulatory relationships and marketing with an initial focus on developing a CBDC strategy” will be developed.
Grist to the mill of the XRP bulls, who like to postulate the Ripple-Coin as the future “standard” of the financial world.
On the US, Bitcoin 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 level of 70 cents shortly afterwards.
Problems seem to have arisen with XRP transactions.
I am also in limbo as my XRP was not credited to me and it is said that my transaction was canceled, but the money was withdrawn from my USD wallet. The money is gone!
In the hope that it is a disturbance and not something more serious … .. please answer if this happened to you too …
writes a shocked user on the Downdetector.com website. And is obviously not alone: Other users report aborted trades in the trading pairs XRPUSD, USDETH, XRP / DAI and others. The suspicion is that Coinbase has reached its capacity limit — possibly also that of its XRP liquidity.
Coinbase boss Armstrong only announced on November 19 that the exchange was overloaded by the Bitcoin bull run:
We’re working hard to add extra capacity (both on servers and customer support) to accommodate the increased traffic. We thank you for your patience during this time. And thanks to the team at Coinbase who work hard to serve our customers. Bull runs can be exciting and stressful.
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