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XRP has historically risen after Bitcoin halvings, raising expectations for the year 2024.
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The price of XRP may rise after 2024’s halving due to market sentiment and demand.
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Regulatory developments, institutional interest and XRP’s performance after the halving could have an impact on its performance.
XRP investors hope to see history repeat itself as the 2024 halving of Bitcoin approaches. Previous halvings boosted XRP prices, and Ripple’s recent court victory adds an extra layer of optimism.
The halving of Bitcoin, which is expected to reduce its supply and drive its price up, often triggers an all-out rally that benefits major alternative coins. Will XRP be able to ride the wave again? Let’s look at the factors that are at play.
XRP’s price surge in previous Bitcoin halvings
XRP’s price has increased significantly in previous Bitcoin halvings. XRP’s value soared in the months following the 2016 halving. XRP’s value increased by 85% after the second halving. Following the 2020 Bitcoin halving XRP also increased by over 100 percent. Investors expect the 2024 halving could spark similar movements. This is especially true as historical data shows a strong relationship between Bitcoin’s price increase and XRP’s upward momentum.
Read Also: XRP’s Uncertain Future – Legal Wrangling, Market Turbulence
The halving of Bitcoin’s supply often leads to a rally in the market, which impacts other major cryptocurrencies. XRP is one of the biggest cryptocurrencies in terms of market capitalization and will benefit from this trend. Market conditions can change quickly and past performance does not always predict future results.
Factors that could influence XRP’s price
XRP’s performance in the year 2024 could be affected by a number of factors. The partial victory of Ripple against the U.S. Securities and Exchange Commission has helped to generate renewed interest in XRP. In July, a New York Court ruled that XRP was not a security and opened the door for more institutional participation. This ruling has already led Ripple to increase its partnerships with banks and other financial institutions around the world.
Another important factor is the market sentiment. Positive sentiment towards Bitcoin has historically had a ripple affect on other cryptocurrencies including XRP. After Bitcoin’s price stabilizes post-halving, many traders and investors allocate funds to altcoins such as XRP. Similar shifts are likely to occur with the upcoming halving, especially if Bitcoin experiences a significant price boost.
Demand for XRP is also fueled by its use in cross-border payment. RippleNet’s payment network uses XRP for low-cost, fast international transactions. This demand may further support XRP as the 2024 halving approaches. Ripple has benefited from its partnerships, especially in regions such as Dubai, by financial institutions adopting the technology.
Bitcoin’s halving is a catalyst that has historically acted to increase the market-wide prices.
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