Crypto analyst Arthur has predicted that the XRP price is preparing to decouple from Bitcoin (BTC). For years, XRP’s price movements have mirrored those of BTC, but according to Arthur, the market is evolving in ways that could soon set XRP apart. The emergence of Ripple’s new institutional brokerage platform and recent acquisitions, alongside the growing strength of its associated stablecoin, are key drivers that the analyst believes could drive this separation.
XRP Price Set To Break Away From Bitcoin
Arthur’s recent thread shared on X social media paints a confident picture of XRP’s future. He argues that the cryptocurrency is starting to chart its own course, breaking away from Bitcoin’s influence. Traditionally, XRP’s price has followed BTC’s overall direction and trajectory, rising and falling in tandem with the broader altcoin market.
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However, Arthur believes that the latest developments surrounding Ripple, a crypto payments company, could significantly change this dynamic. He points to Ripple Prime as the biggest factor that could drive this shift. Notably, Ripple Prime is a digital asset spot prime brokerage that Ripple recently launched following its acquisition of Hidden Road. The brokerage platform offers OTC spot trading, Foreign Exchange (FX), derivatives, and swaps, all seamlessly integrated with XRP and RLUSD, Ripple’s regulated stablecoin.
By offering Wall Street a means to enter the blockchain finance market, Arthur contends that Ripple Prime could redefine how institutions view digital assets like XRP. Instead of being swayed by broader market sentiment, this institutional demand from Ripple’s new brokerage platform and ongoing developments could drive XRP’s value based on measurable utility. Additionally, it could finally establish the cryptocurrency as a standalone asset rather than one that constantly tracks Bitcoin’s movements.
In his analysis, Arthur frames Bitcoin as a speculative digital asset, while XRP is viewed as a form of financial infrastructure. He explains that this is a crucial distinction considering infrastructure assets are typically driven by real-world adoption and utility, rather than “hype cycles.”
With RLUSD surpassing a $1 billion market cap just a year after its launch, the analyst maintains that Ripple has established a stable and transparent institutional framework that effectively balances liquidity and compliance. Through this setup, RLUSD provides price stability, while XRP offers transaction liquidity, creating a financial ecosystem designed for real-world use, which is ideal for driving price growth.
Regulation And Utility Shifts To Redefine XRP’s Identity
Arthur expands on his analysis by connecting Ripple’s recent developments to a broader picture. He explains that institutions using Ripple Prime to settle payments with XRP and RLUSD are driven by different incentives. They do not care about Bitcoin and are not chasing speculative gains like typical crypto traders, but prioritize efficiency, regulation, and liquidity.
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He also highlighted the potential impact of the upcoming CLARITY Act in the US. If passed, the analyst says that the bill could reclassify XRP as a commodity, moving it away from the “crypto basket” and placing it in the same regulatory category as assets like gold. Through this combination of legal clarity, stablecoin integration, asset class change, and subsequent institutional demand, Arthur says that XRP’s price will gradually decouple from Bitcoin.
Featured image from Freepik, chart from Tradingview.com
Dogecoin, Shiba Inu, ApeCoin, PEPE Decouple From Bitcoin? CoinGape
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Crypto News: Altcoins Dogecoin (DOGE), Shiba Inu (SHIB), ApeCoin (APE), and PEPE Coin have been showing strong resilience away from the Bitcoin correlation, in what could be a sign of increased market volatility in the crypto market in days to come. This comes amid the continuation of Bitcoin price in sideways path around the $30,000 mark. It remains to be seen if an altcoin rally will turn out to be a market moving development.
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While Shiba Inu (SHIB) is nearing the upcoming Shibarium launch, Dogecoin (DOGE) price has been on the rise recently after Elon Musk broke silence over the speculation of an X coin for payments on the social media platform. Earlier, CoinGape reported that crypto exchange Binance announced plans to launch Dogecoin weekly options in Tether (USDT) pair.
Bitcoin Decoupling: What Next
According to Santiment data, Dogecoin, Shiba Inu, ApeCoin and PEPE have temporarily decoupled from not just Bitcoin but also the altcoin category, earlier on Saturday, August 12, 2023. While the price rallies in these cryptocurrencies could be independent from each other, there could slow and steady repercussions on Bitcoin trading as this could be a sign of deviation to the popular altcoins.
“There have been notable price ascensions from popular memecoins. $DOGE, $SHIB, $APE, and $PEPE have all temporarily decoupled from $BTC and the altcoin pack.”
It should also be noted that the spot Bitcoin ETF filing related developments are not expected from the U.S. Securities and Exchange Commission (SEC) anytime soon. The next deadlines for Bitcoin ETF decisions, including for the Blackrock filing, are lined up in the first week of September 2023. Hence, it remains to be seen if the share of Bitcoin market cap among the top cryptocurrencies could see a temporary dip in coming weeks.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Charles Edwards, the founder of the Capriole Fund, revealed that Bitcoin will decouple from stocks and will likely outperform them. However, arcane research recently reported that Bitcoin is still firmly following the stock market.
Correlation Between Bitcoin and Stock Market
According to Coinbase Institute Research, the crypto market and traditional financial market became increasingly correlated in 2020. Since the start of the pandemic, the crypto market saw exponential growth. During this time, it also became increasingly intertwined with the stock market.
According to Coinbase Research, the crypto assets share a very similar risk profile to oil and technology stocks. Bitcoin and Ethereum went from not being correlated with the stock market in 2019 to being strongly correlated in 2022, having a beta of 2. Beta is a measure of how strongly an asset is coupled with the stock market.
A beta of 2 means that when the stock market rises or falls, Bitcoin and Ethereum rise or fall by twice as much. Arcane research pointed out that while the tech-oriented NASDAQ fell by 22%, BTC dropped by 51% during the same period.
Coinbase Research attributed two-thirds of the crypto prices fall during the bear market to larger macro-economic conditions. Only one-third of the fall was due to issues in the crypto industry.
When Will Bitcoin Decouple From Technology Stocks
The State of Crypto report published by 21Shares revealed that the correlation between Bitcoin and stocks is temporary. A recent report published by Bloomberg highlighted that a 40-day correlation coefficient between BTC and NASDAQ is at its lowest point in the year.
Citing a Bridgewater Associates report, Edwards revealed that Gold was the best asset during stagflation. Many experts consider Bitcoin to be an inflation hedge like gold. With the prevalent economic conditions, Edwards believes that Bitcoin can replace Gold and outperform stocks.
In an interview with CNBC, Cumberland’s Chris Zuehlke revealed that while Bitcoin does track with NASDAQ, it decouples with it when there is macro-economic predictability.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitcoin’s latest rally saw it diverge further from the equity market. While stock markets slumped further on news that the United States will ban Russian oil, the world’s largest cryptocurrency rallied more than 6% to break above $41,000.
Bitcoin outperformed stocks last month
The token has found its footing in recent weeks, despite tumbling in line with equities in the initial stages of the Russia-Ukraine conflict. It has lost about 6% in the last 30 days, compared to a 9% drop in the S&P 500 index.
Data from crypto researcher Kaiko showed that Bitcoin’s correlation to equities and conventional assets had touched a two-month low over the past 30 days.
A key factor in this potential decoupling is increased regulatory interest following Russia’s invasion of Ukraine, with the latter becoming the first country to officially seek aid in crypto. Fears that Russia could use crypto to bypass U.S. sanctions also saw several developed nations rush to pass comprehensive crypto regulation.
U.S. President Joe Biden will sign an executive order later in the day that is widely expected to benefit crypto adoption, while the European Union will vote on a key crypto law next week.
This could boost adoption, and help crypto markets carve their own path away from equities and other risk-driven assets.
Bitcoin’s correlation with equities is a trend observed since 2021, when a large amount of institutional interest entered the market. While this interest did power the token to new highs, it also saw it begin trading more in line with conventional risk assets.
Specifically, traders now view Bitcoin as similar to U.S. technology stocks, which also benefit from increased liquidity in the market.
Buying bitcoin now is akin to buying tech stocks (as they move together) with a call option on decoupling – within 6-12 months sounds realistic to me given what’s happening in the geopolitics & FX spaces.
— Alex Krüger (@krugermacro) March 8, 2022
Still no digital gold?
Gold prices rallied nearly 8% in the last 30 days, in sharp contrast to the volatile swings seen in Bitcoin. This has dented the token’s potential as a safe haven. The token’s decoupling from gold may not necessarily be a positive trend.
The divergence from gold has also called into question Bitcoin’s viability as an inflation hedge, given that the price of the token has been unable to keep up with the sharp rise in U.S. inflation this year.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Bitcoin’s role in the global financial turns increasingly important amid the geopolitical situation panning out with the Russia Ukraine crisis. After a move last to decouple itself from the equity market. Bitcoin failed to hold the ground and is down more than 20% from its recent $45,000 high.
As of press time, Bitcoin is trading 4.16% down at a price of $37,980 with a market cap of $719 billion. If Bitcoin continues with its downward correction and fails to hold $35,000, we can see it further sliding to $30,000.
Well, guess who’s bragging all the limelight here? Bitcoin’s arch-rival and hedge asset, physical Gold. Amid the ongoing war crisis, the Gold price has shot up to its 19-month high moving past $2,000 per ounce.
Bloomberg’s senior commodity strategist Mike McGlone has often held a bull case scenario for Bitcoin in 2022. However, in one of his recent tweets, McGlone said that the chances of Bitcoin revisiting $30,000 is very high. But McGlone remains bullish that Bitcoin continues to show divergent strength over equity.
#Bitcoin $40,000 or #Nasdaq 14,000? Digital #Gold Set to Prevail – Bitcoin faces deflationary forces after 2021 excesses, but the crypto shows divergent strength. With 2002 losses less than half those for the Nasdaq 100, Bitcoin may be maturing toward global digital collateral pic.twitter.com/Yt8Q5q5qjt
— Mike McGlone (@mikemcglone11) March 4, 2022
Are Russians Buying Bitcoin Actually to Avoid Sanctions?
Amid the ongoing war, Russia has been facing heavy sanctions as the West plans to cut it off from the global financial system. Many believed that the last week’s market rally was because a large number of Russians were moving to crypto.
However, the narrative was strongly challenged as the Ruble-denominated crypto trading volumes collapsed later that week. In fact, the crypto trading volumes coming from Russia are on a downside. Popular Bitcoin critic Peter Schiff writes:
Russians who are looking to store their wealth in an asset that governments can’t seize are choosing #gold over #Bitcoin. Bitcoin is far too risky to be used as a safe haven or a store of value. Bitcoin has failed its first major test. I don’t think it will get a second chance!
The clear picture is that the yellow metal has yet again proved to be a more reliant hedge asset than Bitcoin in terms of the global crisis. Gold can further surge as the value of commodities head up to the north sharply with inflation expected to grow further.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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