Bitcoin price today: near $119k after trade cheer; Fed, crypto report eyed
NEW YORK - In a notable shift from previous market trends, analytics data has revealed a strong correlation between the prices of Bitcoin and Ripple, two leading cryptocurrencies. This correlation, quantified at 0.84, suggests that both digital assets now share a similar investor audience, diverging from their traditionally distinct investor bases.
The data, provided by Macroaxis today, contrasts sharply with the negative correlation observed between Bitcoin prices and traditional stock markets, following a fall in the S&P 500 index. Notably, both cryptocurrencies experienced a price rise in October, which may have contributed to the increased trading activity and interest among investors.
This newfound correlation is further supported by significant trading volumes on major cryptocurrency exchanges. Bitstamp reported over 590,000 XRP traded daily, while Binance saw an even more substantial volume of 41.2 million XRP exchanged. Such high levels of XRP-BTC trading activity underscore the growing overlap in investor interest in these two cryptocurrencies.
This trend marks a departure from past beliefs about the distinct nature of Bitcoin and Ripple's investor communities. In February 2019, Bitcoin expert Andreas Antonopoulos suggested that different types of investors were attracted to each cryptocurrency. Bitcoin was often preferred for its secure proof-of-work consensus mechanism, which supports its use as a peer-to-peer (P2P) cash network. However, it has been criticized for being energy-intensive and slow in transaction processing. Conversely, Ripple has been favored for its less energy-consuming operations but has faced criticism for not being a true blockchain in the eyes of some enthusiasts.
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The rivalry between supporters of Bitcoin ("Bitcoin Maxis") and Ripple ("XRP army") has been well-documented in the crypto community. Yet, current data points to a convergence of interests that may be softening these once-rigid divides.
While Binance has sought to attract new users with promotions such as offering $100 free to new registrants, it is the underlying shift in investor behavior that stands out as the most significant development in the cryptocurrency landscape. The robust correlation coefficient between Bitcoin and Ripple's prices is indicative of this evolving market dynamic.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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