Expert Shares Interesting Correlation Between XRP and BTC Investors Should Take Note Of

XRP’s recent price movement again draws attention to its possible predictive power over Bitcoin’s market behavior. On January 16, XRP surged to an all-time high of $3.40 on the Bitstamp exchange after a strong rally in late 2024.

Bitcoin hit $108,786 on January 20 as the market showed similar behavior to past cycles right before the price peak. According to Joe Weisenthal, who co-hosts Bloomberg’s “Odd Lots” podcast, the price movement of XRP has traditionally shown peak points when Bitcoin reaches a local high.

Meanwhile, CoinGecko data indicates that Bitcoin fell beneath its previous peak to reach $$77,195.61 after losing 47% of its maximum value, and XRP trades similarly at a 47% reduction from its highest point.

Bitcoin initially showed resilience during a sharp downturn in U.S. equities last week, but selling pressure eventually overwhelmed the market. The correction in both assets has prompted further analysis of investor sentiment and market structure.

One thing that’s true in crypto is that every time we’ve gotten an XRP spike, it’s been a local top in Bitcoin pic.twitter.com/WtwyxUCpRg

— Joe Weisenthal (@TheStalwart) April 6, 2025

Also Read: Here’s Why XRP Crashed Below $2 All of a Sudden – What’s Next

On-Chain Data Reveals Heavy Selling Despite Signs of Bullish Accumulation

According to CryptoQuant CEO Ki Young Ju, the current correction does not necessarily signal the end of Bitcoin’s bull phase. He explained that while the overall market cap remains relatively stagnant, the realized cap has continued to grow steadily.

High market prices have led Bitcoin’s long-term holders to build their positions more actively, demonstrating their faith in cryptocurrency’s future worth. Although investors have raised their average selling prices through accumulated ownership of Bitcoin, the price has remained stagnant because sellers actively resist upward trends.

The massive offloading from sellers has prevented buying orders from increasing price levels. The market shows hesitation, mainly because of the volatility of the standard equity market during this period.

Financial analyst Peter Schiff sees the current value decrease as an initial phase of an approaching major market downturn. According to him, Bitcoin and other cryptocurrencies possess no fundamental worth, and investor trust is weakening, so their prices will keep declining.

Volatility Prompts Closer Watch on Correlated Price Movements

The recurring alignment between XRP spikes and Bitcoin’s local tops is becoming more noticeable to analysts and investors. While some dismiss this as a coincidence, others consider it a useful short-term indicator of market sentiment.

Bitcoin and XRP also tend to move in correlation with U.S. equities during periods of high risk appetite. As macroeconomic conditions remain uncertain, these relationships may become more relevant for short-term market forecasting.

Although long-term fundamentals remain intact for some investors, current market conditions suggest a cautious approach. Price movements in XRP and Bitcoin will likely continue to be scrutinized closely for any further signs of trend exhaustion.

Conclusion

The close timing of XRP’s record high and Bitcoin’s peak has once again brought attention to their correlated price behavior. As both assets face significant selling pressure, the observed pattern may offer important insights for investors navigating the current market correction.

Also Read: Here’s What to Expect After XRP Crash, Expert Explains

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