Bitcoin’s price surged to $65,000 as XRP led the crypto rally, showing a strong rebound from last week’s low. On Tuesday, Bitcoin hit its highest price in four weeks, surpassing the $65,000 mark for the first time since late June. This surge came despite a brief dip below $63,000 earlier in the day when wallets linked to the Mt. Gox exchange’s estate moved $2.8 billion worth of BTC, likely in preparation to distribute assets to creditors soon.
The crypto rally was widespread, as seen in the CoinDesk 20 index gaining nearly 3% over the past 24 hours. Sixteen of the 20 constituents were in the green during the day, indicating a positive market sentiment. Among altcoin majors, XRP, the native token of the XRP Ledger payment network, was the strongest performer, rising by 9% on Tuesday and extending its weekly gains to 35%.
Whales, or large asset holders, increasing their XRP holdings signaled confidence in higher prices, according to crypto data provider Santiment. Additionally, traditional derivatives trading platforms CME and CF Benchmarks announced indices and reference rates for XRP, potentially boosting institutional adoption for the token, as suggested by Ripple’s CEO Brad Garlinghouse.
As concerns loom over the potential sell pressure from Mt. Gox creditors distributing $9 billion worth of Bitcoin to claimants after a decade-long wait, experts have differing views on its impact on the market. While some fear a significant sell-off could occur, others believe the market can absorb the liquidation if done gradually and orderly.
Crypto analytics firm CryptoQuant’s CEO, Ki Young Ju, expressed that fears of sell pressure from Mt. Gox creditors may be overstated and may not disrupt the current bullish trend. Similarly, well-known analyst Alex Krüger estimated a maximum 10% price drop for Bitcoin if creditors decide to sell off their assets en masse. CoinMetrics also stated that the market depth and trading volumes of Bitcoin should be able to absorb the distribution of approximately 65,000 BTC over a few weeks without causing severe disruptions.
In conclusion, Bitcoin’s surge to $65,000 and XRP’s leading role in the crypto rally indicate a positive market sentiment. The potential distribution of Mt. Gox assets to creditors may pose challenges, but experts believe that the market is resilient enough to absorb the liquidation without significant disruptions if done gradually. This ongoing rally highlights the growing interest and adoption of cryptocurrencies in the financial world.
