Bitcoin (BTC) Price Hits 4-Week High as XRP (XRP) Surges 9%—Market Watch

The crypto rally from last week's lows seemed unstoppable, with bitcoin {{BTC}} hitting a four-week high on Tuesday.

Bitcoin (BTC) price hit a four-week high on Tuesday morning as a crypto rally gathered steam from last week’s lows, with XRP (XRP) surging 9% on the day.

BTC rose above the $65,000 level for the first time since late June, after briefly dipping below $63,000 earlier in the day as wallets linked to the legacy of the defunct Mt. Gox exchange moved $2.8 billion in BTC, likely preparing to distribute assets to creditors in the coming days.

The crypto rally was broad-based, with the market benchmark CoinDesk 20 index (CD20) rising nearly 3% over the past 24 hours, with 16 of the 20 indices in the green for the day.

The strongest performer among major altcoins was XRP, the native token of the XRP Ledger payment network, which surged 9% on Tuesday, extending its weekly gains to 35%.

The token’s rally is being fueled by whales, or large wealth holders, increasing their holdings in a sign of belief in higher prices, crypto data provider Santiment pointed out.

Another catalyst was traditional derivatives trading giants CME and CF Benchmarks announcing indices and reference rates for XRP. These offerings could boost institutional adoption of XRP, suggested Brad Garlinghouse, the CEO of closely related blockchain payments company Ripple.

Selling pressure from Mt. Gox ‘overrated’

With BTC sales by the German government lagging, crypto investors are speculating on how much of the remaining $9 billion in bitcoins will be dumped into the market by creditors to capitalize on the asset’s appreciation after a decade of waiting.

Ki Young Ju, CEO of crypto analytics firm CryptoQuant, maintained that fears over the selling pressure are “exaggerated” and won’t derail the current crypto rally.

“I don’t believe this distribution will end the bullish trend as the coins are expected to react to market sentiment in the same way as the existing bitcoin supply,” he explained in a Telegram message. “Unlike the German government selling, Mt. Gox’s creditors are not being forced to sell, so it’s not pure liquidity on the sell side.”

Popular crypto and macro analyst Alex Krüger anticipates a price drop of up to 10% for bitcoin as creditors sell off their reclaimed assets en masse, according to Ju.

Meanwhile, CoinMetrics said the market should absorb Mt. Gox creditors liquidating their assets if it happens in an orderly manner and spread out over weeks based on bitcoin’s current market depth and trading volumes.

“The distribution of ~65,000 BTC (worth approximately $1.95 billion at current prices) could be absorbed by the market over a period of a few weeks without causing any serious disruptions, assuming the liquidations occur gradually and across multiple exchanges,” analysts at CoinMetrics wrote in a report on Tuesday.

“However, these findings are only an indication of the depth and maturity of the BTC market, but should allay fears of a liquidity shortage in the near term.”

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