3 reasons why the cost of BTC, ETH and XRP will continue to rise
Three leading cryptocurrencies, Bitcoin, Ethereum and Ripple, have recorded rapid price increases this week, but only we expect this trend to continue.
Cryptocurrency price rally continues
Since the beginning of November 2020, total global cryptocurrencies have increased global market capitalization by almost $200 billion, with Bitcoin leading. Ethereum is up more than 30 per cent and XRP has soared more than 115% this week, according to CoinMarketCap.
While some traders expect a pullback, leading analysts show that historically Bitcoin and cryptocurrency prices would probably spike in the Thanksgiving area. In addition, the overall cryptocurrency market could get a significant boost from the expected publications of the European Central Bank (ECB) and the US Federal Reserve this week, which should reveal further stimulus plans by the central bank.
The price of Bitcoin hovers above 18000 dollars, and its incredible growth is mainly due to the increase in institutional investments, as opposed to the bullish growth of BTC 2017, which in was mostly caused by retail FOMO, and which incidentally could play the role of another major bull factor. once the BTC gets close to its all-time high.
Jan Balina, CEO and founder of Token Metrics, explained to Blockchain.News:
“The new record high of Bitcoins can attract more media attention, which will lead to a massive rise to new heights. Although the crypto-asset hovers around $18,000, it still doesn’t get the same level of media attention as it did in 2017. Once that happens, traders and organizations from the millennials generation will switch to BTC.”
Historical data show that major holidays in the United States, especially Thanksgiving, typically raise prices for Bitok and cryptocurrency. William Noble, chief technology analyst at Token Metrics expects the same this year, but believes Ethereum will be the main beneficiary this time around.
“In 2017, in connection with Thanksgiving there was a real rally in the crypto world. This year, the chase is likely to be for Ethereum. The younger brother has a lot of catching up to match the big brother’s performance.”
Brian Norton, MyEtherWallet’s chief operating officer, agrees that Ethereum is a major factor in value creation, but believes Bitcoin’s price action is a lightning rod, acting as an entry point for many to the cryptocurrency market. Ethereum was up more than 30% this week, and ETH at the time of writing was trading at 582$:
“BTC’s recent leap demonstrates how the coin functions in a large space of digital assets: as an entry point for the crypto-curious and hedging positions in experiments conducted on others blockchains, in particular Ethereum, which actively stimulate value creation in space.”
Token Metrics CEO Balina believes that if the price of Bitcoins continues to rise this festive period, it could start the second season of altcoins, which will lead to a huge increase cryptocurrencies such as XRP. Balina said:
“Once BTC cools down, profits will be sold into altcoins, which will be the start of the second bull season of violas. Everyone will be very interested to look at the crypt after Thanksgiving. We may be witnessing the birth of a new global digital reserve currency.”
More stimulus from ECB and Fed
Cryptocurrency prices have benefited from the global central bank’s stimulus measures, and this week investors in the United States and Europe are also waiting for a clearer idea of whether The Federal Reserve and European Central Bank are planning to provide additional economic incentives to combat the renewable cases of COVID-19.
Catherine Coley, chief executive of Binance.us, told Forbes:
“This year was extremely unpredictable, but the BTC maintained its value for most of the year, and the recent bullish momentum proves to many bitcoins what we already knew: a digital asset, not tied to local fundamentals, has huge potential for global growth and acceptance, especially at a time when countries print more of their currency to revive economic activity”.
The Federal Reserve is expected today to release the minutes of its month-long monetary policy meeting, at which Chairman Jay Powell said changes were made to asset purchase program to provide additional incentives. The ECB will release its October investor meeting minutes and President Christine Lagarde has already signalled that “the ECB is already exploring recalibration of all instruments” for a new set of incentives.
At the time of writing, the value of Bitcoin was $18,718, Ethereum — 582, and XRP — 0.63. Due to the rise of cryptocurrency on Thanksgiving and these two central bank statements, traders have three reasons to expect a steady rise in cryptocurrency prices next week as well.