Bitcoin’s price started December with a bang. It is up over 10% since December 1 and is trading above $41,000 for the first time in 19 months. Many analysts are of the opinion that an altcoin season has begun since the price of Bitcoin has increased so much. An interesting question is Ripple’s (XRP) whether he can follow it. There are multiple factors to consider.
Ripple’s Price So Far in December
At the time of writing, XRP is trading at $0.64, up 3.3% in the last 24 hours and 5.9% in the last seven days.
cryptocurrency Its unit has gained approximately 5.4% since December 1. It is clear that XRP is outperforming BTC, which is up around 10% over the same period.
In terms of the derivatives market, open interest in XRP has been increasing over the last few days. This points to the possibility of further volatility going forward.
Factors to Consider in December
There are some universal market factors, so to speak, that will have an impact on the performance of the entire industry.
Koinfinans.com As we reported, the FOMC meeting will take place in the USA on December 13. During this event, the Federal Reserve will determine whether to raise interest rates.
This is perhaps why risky markets like cryptocurrencies are currently on the rise. Investors seem unimpressed by the upcoming FOMC meeting.
However, the Federal Reserve may decide it is time to continue raising interest rates. It is possible that this situation will negatively affect the market, stopping the ongoing rally and therefore the possibility of XRP outperforming BTC.
Price Catalysts Exclusive to Ripple
It’s important to understand that Ripple, while part of the broader market, is a company in its own right. Therefore, there is a possibility of isolated catalysts that could push the price of XRP up. For example, if Ripple announces an exciting partnership or releases a major update to its product suite, this is likely to have a positive impact on the XRP price.
Additionally, the ongoing litigation between the company and the SEC is a big factor in the asset’s price.
Any positive development in this regard is likely to have a positive impact. There is also a lot of speculation about a potential Ripple IPO (initial public offering).
In essence, there are multiple project-specific potential catalysts that could increase the price of XRP as we enter the final month of 2023.