Altcoins like XRP could benefit tremendously if Bitcoin ever claims the $1 million price target teased by multiple industry leaders.
The crypto market has had a turbulent period over the past few weeks, with prices tumbling to new lows. Bitcoin (BTC), the original cryptocurrency, has been at the center of this downtrend, occasionally slumping below the $100,000 psychological mark to retest lows at $98,000.
Altcoins Collapse as Bitcoin Struggles
Following this trend, altcoins have also struggled. Notably, this is due to the close correlation between the altcoin market and Bitcoin. With BTC facing a turbulent period, altcoins like XRP have failed to perform optimally, with only a few outliers.
Specifically, Bitcoin has dropped 3% in November despite recent recovery efforts. As a result, the total crypto market cap has lost nearly $120 billion this month, with altcoins seeing large losses. However, XRP has held up well despite following in the broader market’s footsteps, only down 2.6% month-to-date.
Bitcoin to $1M Predictions
However, this close correlation between Bitcoin and altcoins could be beneficial when a strong rally emerges. Notably, multiple industry leaders believe BTC could reach greater heights in the coming years, with the $1 million target often featuring in these forecasts.
For instance, in September, the Winklevoss twins, founders of the Gemini exchange, predicted that Bitcoin could “easily” claim $1 million from its current position. Notably, they cited historical data, which confirmed Bitcoin’s penchant for explosive growth.
Meanwhile, a month before that, Coinbase CEO Brian Armstrong said during a Cheeky Pint podcast episode that Bitcoin may reach $1 million by 2030, citing clearer regulations. Interestingly, in July, “Rich Dad Poor Dad” author Robert Kiyosaki also hinted at a possible Bitcoin price rise to $1 million, suggesting that he wouldn’t want to miss the boat.
XRP Price if Bitcoin Hits $1M
Should Bitcoin claim the $1 million price, XRP could also witness a comparable price increase due to the price correlation between Bitcoin and altcoins. Notably, data from Macroaxis shows that XRP and Bitcoin have a 78% correlation coefficient, showing both assets have “poor diversification” in comparison.
If this correlation persists across the crypto market, XRP and Bitcoin could maintain their respective market dominance even when Bitcoin reaches $1 million or $19.94 trillion market cap. With BTC currently holding a 59.85% market dominance, if it retains this dominance at a market cap of $19.94 trillion, the total crypto market cap would sit at $33.3 trillion.
Meanwhile, XRP currently has a market dominance of 4.19%. If it maintains this dominance when the crypto market hits $33.3 trillion, XRP’s market cap would soar from the current $148 billion to around $1.4 trillion. Considering XRP’s circulating supply of around 60 billion tokens, this market cap translates to $23 per XRP token.
At this price, 1,000 XRP tokens, currently worth $2,460, would grow to about $23,000. Meanwhile, anyone holding 5,000 XRP, worth $12,300 today, would be sitting on $115,000. For those holding 10,000 XRP, currently worth $24,600, their stash would rise to $230,000 if XRP reaches the $23 price.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
