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Should the Market Sell Bitcoin (BTC) and Buy XRP?
Factors to Consider:
1. Impact on BTC Price:
• If 50% of the value was sold, the price of BTC would plummet due to selling pressure, potentially dropping by 50% or more. The new BTC market cap could be anywhere between R$ 1.44 trillion to R$ 1.8 trillion, depending on liquidity.
2. XRP Volatility:
• The XRP market currently has lower liquidity compared to BTC. This means that an inflow of R$ 1.44 trillion would create a rapid appreciation, but also high volatility, potentially attracting speculators and causing spikes and drops in price.
3. Sustainability of the move:
• This level of appreciation would depend on the motivation behind the conversion (institutional adoption, favorable regulation, or changing use cases for XRP, such as cross-border payments).
• If the market does not justify the high price with real usage, the value could correct.
Theoretical scenario: XRP close to BTC in dominance:
• If the 50% conversion of BTC to XRP propels XRP to be seen as a primary alternative to BTC, it could reach higher parities with traditional assets and fiat currencies.
Factors to Consider:
1. Impact on BTC Price:
• If 50% of the value was sold, the price of BTC would plummet due to selling pressure, potentially dropping by 50% or more. The new BTC market cap could be anywhere between R$ 1.44 trillion to R$ 1.8 trillion, depending on liquidity.
2. XRP Volatility:
• The XRP market currently has lower liquidity compared to BTC. This means that an inflow of R$ 1.44 trillion would create a rapid appreciation, but also high volatility, potentially attracting speculators and causing spikes and drops in price.
3. Sustainability of the move:
• This level of appreciation would depend on the motivation behind the conversion (institutional adoption, favorable regulation, or changing use cases for XRP, such as cross-border payments).
• If the market does not justify the high price with real usage, the value could correct.
Theoretical scenario: XRP close to BTC in dominance:
• If the 50% conversion of BTC to XRP propels XRP to be seen as a primary alternative to BTC, it could reach higher parities with traditional assets and fiat currencies.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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