Bitcoin (BTC) plunged below $ 26,000 on December 29 as new consequences emerged in the cryptocurrency market from Ripple’s threatening lawsuit with the US Exchange and Security Commission.
BTC falls when Coinbase stops trading XRP
Data from the Cointelegraph, Coin360 and TradingView markets showed that the BTC / USD pair reached just $ 25,830 during Tuesday’s trading.
The $ 27,000 support failed to last overnight, leading to a reconsideration of lower levels now centered at $ 26,000. Bitcoin reached a full-time high of $ 28,400 over the weekend before turning around quickly.
The latest losses come from XRP, the fourth largest cryptocurrency by market value, and hit $ 0.23 thanks to the large US platform Coinbase, which has decided to stop trading from next month. A lawsuit against the Securities and Exchange Commission (SEC) against the token threatens to classify the XRP as an unlicensed security and makes trading legally impossible.
Michael Van de Pope, an analyst at Cointelegraph Markets, summed up Bitcoin’s short-term outlook in a video update on Monday: “There will be a limited build-up, after which 2021 is likely to erupt again.”
Analyst prepares for Altsison
Van de Poppe wants altcoins to generate significant returns. Despite XRP, the market is already showing signs of life, with Ether (ETH) climbing above $ 700 this week for the first time since May 2018.
Another winner on Tuesday was Polkadot (DOT), currently the seventh largest symbol by market value, which gave a daily gain of 22.5% and reached almost 34% in one week.
According to Van de Poppe, the next bitcoin “boost” in 2021 should bring the market to $ 40,000 or $ 50,000, but “until then, altcoins will probably work well.”
He also suggested a potential peak for Bitcoin’s dominance in market value, which would soon give way to altcoins of around 70%. December is usually the peak of BTC dominance: in 2017, Bitcoin’s first attempt to break through $ 20,000 was made, which is a remarkable comparison.