🎁 Exclusive offer: Get EXTRA Bits and Celebrate Bybit's 6th Birthday With $2.2M Prize Pool. Act Now!

What Does Bitcoin Surge Over $100K Mean for XRP?

Key Takeaways

  • Bitcoin’s $100K milestone fuels market optimism, spotlighting XRP’s rally driven by legal clarity and adoption momentum;
  • XRP reclaims its 3rd rank by market cap, supported by trading activity, regulatory optimism, and technological innovations like RLUSD;
  • Analysts predict XRP’s growth, with ETF prospects and institutional interest enhancing its potential for cross-border payments dominance.
What Does Bitcoin Surge Over $100K Mean for XRP?

Bitcoin's BTC $97,948.56 journey toward $100,000 has dominated the headlines lately. It was a big moment for crypto, as it marked a turning point driven by factors like increased institutional adoption, approvals of spot Bitcoin ETFs, and inflation concerns boosting demand for decentralized assets.

While this part of history was unfolding, Ripple’s XRP  XRP $2.31  also managed to sneak into the conversation.

XRP's rally was marked by remarkable price movements, legal progress, and increasing adoption, showing it is not just Bitcoin stealing the show.

What Does Staking Mean in Crypto? (Easily Explained!)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

Even though Bitcoin's market dominance remains above 52%, the $100,000 milestone reached on December 5 has brought renewed attention to crypto, so altcoins like XRP got recognized alongside it.

Technological advancements like the Lightning Network, easier retail access through platforms like PayPal, and Bitcoin’s reputation as "digital gold" have also attracted mainstream attention to the industry.

What Bitcoin’s $100K Milestone Means for XRP

Historically, Bitcoin's rallies have been followed by an “altseason”, where altcoins see significant price increases as investors diversify their portfolios.

For XRP, Bitcoin’s achievement highlights the resilience of cryptocurrencies that have overcome challenges like regulation and scalability.

One Reddit user shared their perspective, comparing Bitcoin's performance with XRP's potential:

I seriously don't understand why so many people feel like Bitcoin is the holy grail - it was at $50K ages ago and managed to double itself from $50K to $100K <...>. On the other hand, XRP hasn't fulfilled itself since 2018. That's massive. <...> The potential is with XRP, not with Bitcoin now. Going from $0.30 to $2.80 is a serious deal.

While Bitcoin leads the market, XRP’s unique use cases in cross-border payments and its progress toward legal clarity position it as a strong candidate for further growth.

XRP's Rally and Growing Momentum

XRP has seen a strong rally recently, briefly touching $2.77 on December 3 before correcting to $2.41 on December 7.

This recent surge has helped XRP reclaim its position as the third-largest cryptocurrency by market capitalization, overtaking Tether's USDT USDT $0.9985 . As of writing, XRP keeps the position and is priced at $2.40.

Bitcoin hits 100K, what it means for XRP: a preiew of BitDegree's price tracker for XRP.

A surge in trading activity, particularly on South Korean exchanges like Upbit $5.61B and Bithumb $1.78B , highlighted strong retail investor interest in this asset. This enthusiasm has played a role in XRP’s performance despite broader market corrections.

Regulatory Developments Fuel Optimism

Just like for Bitcoin, one of the most influential drivers of XRP’s recent success is optimism around the re-election of Donald Trump as US President.

Trump became openly pro-crypto during his presidential campaign, which renewed hopes for a clearer regulatory environment. Those hopes grew even stronger when he started acting on his support—especially when he appointed Paul Atkins, a known crypto advocate, as the new Chair of the US Securities and Exchange Commission (SEC).

That is important for Ripple, as it has been battling the SEC in court since 2020 over claims that secondary market sales are considered securities. A crypto-friendly Chair could push for a resolution that benefits Ripple Labs, which could boost investor confidence in XRP, too.

Besides, WisdomTree, an asset management firm, filed with the SEC to launch the WisdomTree XRP Fund, which is more likely to get approved with a pro-crypto Chair in charge. If approved, the ETF would offer a regulated way for investors to invest in XRP, further increasing its adoption.

Technological Innovation Drives XRP’s Utility

Beyond legal developments, Ripple is advancing XRP’s utility with key innovations. Recent XRP Ledger (XRPL) updates, such as reducing reserve fees from 10 XRP to 1 XRP, have lowered barriers for new users.

Additionally, Ripple is planning to launch RLUSD, a regulated, dollar-pegged stablecoin, which could enhance liquidity and attract institutional investors.

Looking Ahead: XRP’s Potential in 2024 and Beyond

Analysts are optimistic about XRP’s future price. Projections for 2024 suggest XRP could reach $2.67, with an average price of $2.32.

By 2025, forecasts range from $3.25 to $7, driven by increased institutional adoption and potential ETF approvals.

One Reddit user also discussed XRP's potential price in a post, saying:

A price range of $3–$4 seems much more achievable, considering the past performance of XRP and its ongoing developments. At these price levels, the market cap would be between $170 billion and $230 billion.

Ripple’s ability to innovate and resolve legal challenges should be key to XRP’s growth. The introduction of RLUSD and the potential for an XRP-focused ETF could also transform the token’s utility and market appeal.

The Bottom Line

Bitcoin’s $100,000 milestone marks a turning point for the cryptocurrency market, but XRP’s recent rally highlights the growing importance of altcoins.

With XRP's innovative use cases, growing adoption, and regulatory developments, it is carving out its own narrative alongside Bitcoin's success.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

Loading...
Bybit
×
Verified

$30,000 IN REWARDS

Bybit Black Friday Deal
5.0 Rating