The price of Bitcoin (BTC) surpassed $19,000 on Nov. 24 for the first time in nearly three years. It followed an XRP flash crash on Coinbase, which trembled the crypto market.
The two incidents could be entirely coincidental. Although considering that BTC price surged almost immediately after the XRP drop, there could be a correlation.
As Cointelegraph reported on Nov. 24, the price of XRP spiked by nearly 80% in 48 hours. As the rally went on, the hype around the cryptocurrency continued to intensify.
The interest in the cryptocurrency reached a point where it overwhelmed Coinbase, the biggest cryptocurrency exchange in the United States.
Joe Weisenthal, the co-host of What’d You Miss on Bloomberg TV, emphasized that Coinbase was trending on Twitter. The spike in interest around Coinbase occurred when the price of XRP began to increase. He said:
The problem emerged when XRP flash-crashed after hitting $0.90 on Coinbase. It caused the market to undergo extreme volatility in a short span of time. Bitcoin plunged to around $18,000, while ETH dropped to $585.
Although it is difficult to prove conclusively, market trends suggest that the flash crash led algorithms to cause high volatility. The price of Bitcoin briskly rose from $18,000 to above $18,500, eventually breaking $19,000.
When Bitcoin dropped to $18,000 within just minutes, a supply zone was likely tapped. In other words, it might have dropped to an area with significant liquidity, causing many buy orders to get filled.
In the near term, traders and analysts anticipate Bitcoin to continue its uptrend as it nears its all-time high.
A pseudonymous investor known as “Blackbeard” pinpointed the lack of exchange inflows despite the price of BTC reaching $19,000. This indicates that the selling pressure on the dominant cryptocurrency is still relatively low. He said:
Prior to the breakout above $19,000, another pseudonymous trader known as “Salsa Tekila” predicted the rally. He said that when altcoins cool down, profits would likely move back into BTC. He said:
There is a strong possibility that the trend of profits from altcoins cycling into Bitcoin will continue in the near term. If this happens, the altcoin market would likely stagnate while BTC shows strong momentum.