Bitcoin (BTC) fell below $ 26,000 on December 29 when cryptocurrency markets felt new fallout from a Ripple threat lawsuit with the US Exchanges and Security Committee.
BTC price drops when Coinbase stops trading XRP
Data from the Cointelegraph, Coin360 and TradingView markets showed that the BTC / USD pair reached $ 25,830 during Tuesday’s trading.
The $ 27,000 support didn’t last overnight, triggering a fresh test at lows now focused on $ 26,000. Bitcoin reached an all-time high of $ 28,400 this weekend before quickly turning around.
The latest losses came when XRP, the fourth-largest cryptocurrency by market capitalization, reached $ 0.23 thanks to the major US platform Coinbase, which decided to stop trading from next month. A lawsuit brought by the Securities and Exchange Commission (SEC) against the token threatens to classify XRP as an unlicensed security and makes trading legally impossible.
Michael Van de Bobby, analyst at Cointelegraph Markets, summed up the short-term outlook for Bitcoin in an updated video on Monday, “There will be remote construction, after which 2021 is likely to break out again.”
The analyst is preparing for the peak season
Van de Poppe says altcoins are next in the big win order. Despite XRP, the market is already showing signs of life, with Ether (ETH) rising above $ 700 this week for the first time since May 2018.
The other winner on Tuesday was Polkadot (DOT), which is the seventh largest symbol by market cap, growing 22.5% per day thanks to its weekly performance of nearly 34%.
According to Van de Poppe, the next “impulse” of bitcoins in 2021 should bring the market to $ 40-50K, but “until then, altcoins are likely to function well.”
He also pointed to a potential peak in bitcoin’s market capitalization dominance, which will soon give way to an altcoin presence of around 70%. December usually sees the peak of BTC’s dominance: 2017, Bitcoin’s 1st bid at $ 20,000, a notable comparison.