Bitcoin 170% Surge to $40k Helps XRP

Forbes senior contributor Billy Bambrough has argued that Bitcoin’s recent surge into the $40k region substantially impacts other major cryptocurrencies like XRP.

Bitcoin Surge Impacting XRP

In a recent report, Forbes’ Billy Bambrough emphasized the sudden surge in Bitcoin, surpassing the $40,000 threshold within the last week. Bambrough highlighted that Bitcoin’s current price reflects an impressive 170% increase from last year.

Moreover, he observed that the Bitcoin surge has influenced the prices of other significant tokens like XRP. According to data from CoinMarketCap, Bitcoin’s value dipped as low as $16,521 in 2022 and has since surged beyond $44,000 in 2023.

Similarly, XRP, valued at a mere $0.3121 last year, now trades at $0.6434, indicating a growth rate of 106%. As the Forbes senior contributor pointed out, this XRP growth trajectory closely mirrors that of Bitcoin.

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Additionally, Bambrough stated that the overall crypto uptrend coincided with speculations of substantial money-printing activities by top financial authorities like the United States. Meanwhile, he cited that amid rising concerns that threaten U.S. dollar dominance, Coinbase CEO Brian Armstrong has made a bold prediction for the crypto market. 

Weakening USD and the Role of Crypto

Bambrough quoted the Coinbase CEO saying that Bitcoin will play a pivotal role in prolonging Western civilization, especially as the United States grapples with escalating inflation.

In particular, Armstrong highlighted that the inherent pattern observed in any country holding the reserve currency is to expand the money supply and escalate deficit spending until it relinquishes that advantageous position. 

Armstrong noted that the United States is currently navigating this trajectory, citing experts like billionaire hedge fund founder Ray Dalio as backing.

One idea I’ve been contemplating is that Bitcoin may be the key to extending western civilization.

The natural trend of whichever country has the reserve currency is to inflate the money supply and increase deficit spending until it loses that advantage. The U.S. is somewhere on…

— Brian Armstrong 🛡️ (@brian_armstrong) December 3, 2023

Following the sentiment from the Coinbase CEO, Forbes’ Bambrough highlighted that the U.S. national debt has surpassed $33 trillion for the first time. He noted the COVID crisis and subsequent economic disruptions fueled the excessive spending.

Besides, Bambrough noted the U.S. Federal Reserve has undertaken a series of interest rate hikes while wrestling to put inflation under control. He claimed the pace of these rate hikes has been unprecedented since the global financial crisis of 2008.

Amid these developments, the Coinbase CEO expressed that people now have a viable crypto alternative. He anticipates a potential shift from fiat to crypto to safeguard against inflation. 

Meanwhile, contrary to concerns about the threat to the U.S. dollar, Armstrong views this transition to crypto as a “natural check and balance.” In his words:

“I don’t think this be a threat to the dollar and the U.S. I think it will be a natural check and balance that will complement the dollar. I also think both fiat and crypto will co-exist for a long time.”

Ultimately, the Forbes contributor submitted that the declining strength of the U.S. dollar, coupled with a growing focus on Bitcoin, sets the stage for significant influence on other tokens, such as XRP.