Bitcoin Selling Pressure Drops as XRP And Ethereum Rise
There has been a significant price reduction across the board in the cryptocurrency market as a whole. However, investors have continued selling off some of their bitcoin holdings. The fervor among BTC holders might connect to the widespread belief that the value of specific cryptocurrencies would soon increase.
Despite The Drop-in Bitcoin Activity, There Is Still Hope Regarding Future Earnings
Finbold, for example, offers an analysis of Google Trends data displaying the popularity score for the search “sell Bitcoin.” In the week ending of September 24th, 2021, it scored 29. There hasn’t been a lower point in the last year than this one. Interest reached a perfect score of 100 for the week ending October 23rd, 2021.
The previous year’s searches that contained the keyword “Sell Ethereum” increased by 16%. On September 24th, the term’s weekly score was 14. A similar trend can is evident with “Sell XRP”. XRP has recently gained popularity and has a rating of 5 out of 10. It is critical to remember that after the week of September 10th, the values had all reached the same point: zero.
Bitcoin’s (BTC) attempts to recapture lost territory above $20,000 reduce demand for selling the cryptocurrency. On the other hand, investors’ reluctance to sell may indicate they expect a price rebound soon. The data support Finbold research from September 22nd that found the amount of Bitcoin held by addresses had hit a five-year high.
Investors aren’t selling their holdings despite confidence about Bitcoin’s price growth.
Both Ethereum and XRP Are Seeing a Rise in Their Activity Levels
On the other hand, Bitcoin has witnessed little network activity recently compared to Ethereum (ETH) and XRP. Specifically, investors are fleeing Ethereum due to the switch to the Proof-of-Stake (PoS) protocol. The switch occurred as a direct result of the Merge upgrade.
Before the incident, there was a widespread and hopeful belief that the asset’s value would rise. Upgrade was a textbook “buy the rumor, sell the news.” As a result, Investors who bought the asset expecting a gain may wish to sell it to reclaim their money.
It is important to remember that, compared to Bitcoin, the value of Ethereum has dropped significantly after the Merge. By September 20th, five days following the upgrade, Ether’s value had dropped by 15%, while Bitcoin’s had dropped by 3%. As this article was published, Ethereum’s price plummeted to $1,317, a 10% loss.
There Are Encouraging Signs For XRP
Another explanation is that XRP sellers expect a profit from the cryptocurrency’s recent price spike. On September 23rd, the rest of the market got slaughtered, while XRP gained more than 60% in only one week.
Ripple’s stock price surge is likely owing to positive SEC developments (SEC). Ripple’s attorney, Stuart Alderoty, has emphasized his client’s positive outlook on the legal issue. The attorney contended that the SEC did not fulfill the standards of the Supreme Court’s Howey test.
If authorities need to determine whether an asset is a security, they will utilize the Howey Test.