- XRP and BTC have lost long-term price correlation in recent months.
- Despite the row in the XRP camp, both assets followed the same sentiment route.
As two of the most prominent cryptocurrencies that have received a lot of attention and interest, Ripple [XRP] And Bitcoin [BTC] led to an ongoing debate about the correlation between the two assets.
Realistic or not, here it is XRP’s market cap in BTC terms
In the past, some have argued that Ripple’s use cases set it apart from Bitcoin. Others, on the other hand, believe that XRP’s fate is inseparable from BTC’s performance.
BTC and XRP diverged
The conversation started again when John. E Deton weighed to XRP’s reaction to the recent Singapore Expansion. The lawyer, who openly supports XRP, explained that despite the positive development, the token followed the direction of BTC. Deaton mentioned,
“If all XRP holders are in a joint venture with Ripple and rely on Ripple’s successful efforts, you would expect XRP to respond. Yet it does what it always does: track Bitcoin and the macro environment.”
While XRP is correlated to Bitcoin on several counts, its recent correlation coefficient was 0.19, based on Macroaxis data.
Source: Macroaxis
For those unfamiliar, the correlation coefficient is a quarterly statistical measure used to estimate the rate of return between assets. The value mentioned above thus suggests a difference in performance.
And a compelling reason for this is the way XRP outperformed BTC because of the optimism related to the outcome of the SEC case.
Dispute along the same lines
In response to Deaton’s comments, Ripple’s community house was divided. While some supported the takeover, others pointed to the suppression of the token in the midst Bitcoin’s Recent Riseimplying that the opinion of CryptoLaw’s founder was not correct.
For example pseudonymous XRP faithful Dark Defender meant that Deaton was wrong. He said there has been a total misstep in the interdependence saying:
“I don’t think so and I disagree with this statement. XRP would have had similar technical moves compared to Bitcoin if XRP followed BTC. So even this argument substantiates their different dynamics, even though both are in the same arena.”
However, it seemed there was some truth to Deaton’s opinion. But this was based on market sentiment rather than price action.
How many Worth 1,10,100 XRPs today?
According to Santiment, BTCs weighted feel was -1.40. Still, XRP followed the same route at -0.613. Typically, this metric peaks when the vast majority of posts surrounding an item become positive at the same time.
So the weighted sentiment drop for XRP and BTC suggests that the crypto community’s polarity was not bullish.
Source: Sentiment
At the time of writing, the value of XRP is down 1.08% in the past 24 hours, dropping the $0.5 threshold. However, BTC maintained its hold at USD 30,000.