Will XRP Suffer as Bitcoin Dominance Continues to Rise?

Recently, both Bitcoin (BTC) and XRP have seen a slowdown in their upward momentum, leaving some investors anxious about the market's direction, while others anticipate a rebound.

Pav Hundal, the chief analyst at Swyftx, warned that XRP might face significant losses if Bitcoin continues to strengthen its dominance in the market. He suggested that XRP could experience a sharp decline, with many long positions being wiped out in the process.

According to Hundal, if Bitcoin continues to gain market share, a shift from XRP to BTC could trigger a “bloodbath” for XRP investors, especially those who are heavily leveraged.

The analyst also highlighted that investor optimism for XRP has surged following its impressive recent growth, with many still holding long positions despite the price dip. On December 5, XRP’s open interest hit $3.44 billion, a substantial increase compared to the $2 billion seen during its April 2021 rally.

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Hundal suggested that while XRP and other altcoins may see some volatility, their trading volumes and prices could rise again once Bitcoin stabilizes and its dominance diminishes.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.