- Bloomberg’s Joe Weisenthal suggests that major XRP rallies often coincide with Bitcoin market tops, signaling peak investor exuberance.
- Following XRP’s January spike, both XRP and Bitcoin saw sharp declines, raising questions about market sentiment and sustainability.
In a fascinating observation that has stirred crypto circles, Bloomberg’s Joe Weisenthal, co-host of the “Odd Lots” podcast, suggests that major rallies in XRP may act as a warning sign for Bitcoin bulls.
Weisenthal pointed to XRP’s dramatic price surge on January 16, when it soared to an all-time high of $3.40 on Bitstamp. This spike coincided with a wave of optimism in the crypto market, driven by bullish sentiment following a shift in the U.S. SEC’s stance on digital assets.
Just four days later, Bitcoin hit its own record at $108,786. But rather than heralding a sustained bull run, the crypto market began to unravel. XRP has since plunged 47% from its high, and Bitcoin is now trading below $77,000—a sharp reversal that has investors questioning whether XRP’s rallies are actually a red flag for over-exuberance.
The downturn is being attributed to multiple factors: fading hype around regulatory developments, waning retail interest, and the close correlation between XRP, Bitcoin, and traditional equities. When equities are in risk-on mode, Bitcoin tends to rise, dragging XRP with it. But when sentiment shifts, the fall can be just as fast.
Also read: Bitcoin Breaks Below $80K — Could PI, OKB, GT, and ATOM Steal the Spotlight?
Despite briefly showing resilience amid a historic stock market crash, Bitcoin ultimately buckled under selling pressure. Now, speculation is rising over whether the crypto king has already entered bear territory.
Still, not everyone agrees on the market’s direction. CryptoQuant CEO Ki Young Ju argues that Bitcoin remains in a bull market, noting that a stagnant market cap alongside a rising realized cap suggests strong selling pressure—even as large buyers step in.
In contrast, gold advocate and crypto skeptic Peter Schiff remains bearish. “None of the tokens have any real value, including Bitcoin,” Schiff said. “That’s why they’re all headed much lower.”
Whether XRP is a canary in the crypto coal mine or just another volatile asset, one thing is clear: its explosive moves are worth watching—not just for XRP holders, but for the entire crypto market.
