Bitcoin is not at all exciting these days while stuck around $9,000. The world’s leading digital asset is stuck in a range and recording low ‘real’ volume. But the current sideways movement in bitcoin isn’t reflecting in an altcoin rally either.
“Max pain = Zero volatility. I feel like the buzz generally has died out a lot in the last couple of years, and it's only getting worse. Not sure if bullish or bearish,” said trader DonAlt.
But this may be the case for retail investors as trader Ledger Status points out how the “macro buzz” is picking up and ultra-loose monetary policies have people tuning to BTC.
This situation could be bad for bitcoin, given the low level of volatility seen in gold once the “retail mania ended.”
“Retails is what made this market great in the past, I hope it stays that way,” said DonAlt.
“Agree it’s best when retail-driven. Inflation fears can absolutely drive a markup cycle, though. Gold is on cusp of USD ATH and that IMO can by itself help drive BTC. Retail enhances pumps, they don’t have to start them,” is what Ledger Status feels.
XRP pays for institutional interest
According to DonAlt, there is “definitely” some interest from the institutions, but the downside of it is that “XRP pays for that interest.” But that’s just how altcoins work, “crowdfund, pay someone to use the coin, advertise it to people make them buy-in, pay people to use it and repeat,” he said.
The fourth-largest cryptocurrency has bagged about 300 financial institutions across the globe, and Ripple has paid its partners to use the digital asset XRP. The constant decline in XRP prices has the community accusing Ripple of dumping the coin.
Trader Crypto Whale also believes the same but for good reasons. “My theory for the downtrend is that the owners are suppressing the price to ensure Co-Founder Jed McCaleb’s selling doesn’t have a major impact on future growth,” he said in his latest analysis.
Former Ripple CTO continuously sells a portion of his 7 billion XRP that he received for his departure from the company. XRP price dropped 40% after McCaleb announced his intention to sell all of his holdings that had Ripple signing an agreement with him to cap the daily XRP sales at 1.5% of the digital asset’s daily volume.
Although it seems minimal, this would be huge in a bull run. “The future for XRP investors will be prosperous, but that future doesn’t involve Jed,” and the “coin will flourish” once he’s no longer in possession of billions of XRP, he said.
As such, trader Crypto Whale remains a fan of the token, which he first got involved with when its price was below 1 cent.
“It’s gone up thousands of % since, and I’m not focused on a few years of red,” he said while giving an example of the Dow Jones which started with low volume and ugly growth but now after over 124 years is valued at more than $8 trillion.
Trader Ledger Status isn’t of the same opinion and thinks the “jig is up on XRP,” which will continue to underperform.
“I dislike XRP as much as anyone on here, but they've got money & the connections to make that money work. It's the STD of crypto; it just won't disappear. Might as well embrace it when they start going off. They're doing what everyone else is doing, they're just an easy target,” countered DonAlt.
As we reported, DonAlt is also expecting XRP to have about a 500% rally but not before making yet another new low against BTC.