A renowned cryptocurrency analyst has forecasted that XRP‘s value will soon outshine Bitcoin’s, based on a notable technical indicator. The analyst, Cryptoinsightuk, shared on social media platform X that the BTC/XRP pair has entered a reversal zone on a monthly chart.
What Does the Future Hold for XRP?
According to Cryptoinsightuk, the monthly Relative Strength Index (RSI) of the XRP/BTC pair is at its lowest point ever. Historically, such significant drops in RSI have led to XRP surging by 5,251% and 498% against Bitcoin in two different instances.
Despite these optimistic signals, the analyst warns that market sentiment can quickly shift, indicating both opportunities and risks for XRP. Notably, XRP’s performance has lagged behind Bitcoin’s, with a 15% decline year-to-date and a modest 0.8% gain over the past year.
Conversely, Bitcoin has seen a price increase of 61.5% this year and over 150% in the last 12 months, buoyed by the advent of spot Bitcoin exchange-traded funds (ETFs) in the US, which have opened the door for institutional investors.
How Do ETFs Affect Bitcoin?
BlackRock’s iShares Bitcoin Trust (IBIT) has recently overtaken Grayscale Bitcoin Trust (GBTC) as the largest Bitcoin-holding ETF globally. This shift is attributed to Grayscale’s high fees, leading investors to opt for BlackRock’s more cost-effective alternative after GBTC’s conversion to a spot Bitcoin ETF.
Moreover, BlackRock’s income and bond-focused funds have added shares of the iShares Bitcoin Trust, as shown in recent regulatory filings. Both the Strategic Income Opportunities Fund and Strategic Global Bond Fund have increased their exposure to the spot Bitcoin ETF.
Key Takeaways for Investors
– The XRP/BTC pair’s RSI is at a historic low, signaling potential significant gains for XRP.
– Bitcoin’s price surge in 2023 is partly due to the launch of spot Bitcoin ETFs in the US.
– BlackRock’s iShares Bitcoin Trust now surpasses Grayscale in Bitcoin holdings, thanks to lower fees.
– Regulatory filings reveal BlackRock’s increased investments in spot Bitcoin ETFs through their income and bond funds.
In conclusion, while XRP shows potential for outperforming Bitcoin based on historical technical indicators, investors should remain cautious of rapid market sentiment changes. Bitcoin’s recent performance has been bolstered by institutional interest through spot ETFs, marking a significant development in the cryptocurrency market.