Investors turn to BTC: how will Ripple (XRP) price be affected?

Investors turn to BTC: how will Ripple (XRP) price be affected?


Recent data shows that investor interest in Ripple has fallen in some areas. 

According to the latest data, the vast majority of Japanese investors who have entered the cryptocurrency market since last year may be investing only in bitcoin (BTC).

BTC dominance in Japan

Bitcoin's dominance over altcoins in the Japanese market rose above 87% in April, according to data recently released by the Japan Virtual and Crypto Assets Exchange Association (JVCEA). No other tokens generated more than 6% of the monthly trading volume. Also during the same time period, the number of active accounts used in spot crypto transactions in Japan increased to 13,987, reaching an all-time high.

In addition, Yuya Hasegawa, a market analyst at Bitbank, the Japan-based crypto exchange, said: “Japanese investors ' overall interest in altcoins seems to have decreased over time compared to their interest in Bitcoin. Given the increase in the number of active accounts, the vast majority of new entrants to the market in Japan, especially since last summer, are probably only interested in Bitcoin., ” he said.

Ripple's Biggest Loser

Although there has been a large increase in interest in Ripple (XRP) on an overall basis recently, trading in Japan seems to show the opposite. Hasegawa's analysis shows that XRP is one of the biggest losers among Japanese crypto investors. Ripple, the third largest cryptocurrency in terms of market volume, once accounted for about 40% of the value traded on Japan's crypto market on a monthly basis. But looking at the data in April, it seems that this figure has fallen to 5%.

Bitcoin, on the other hand, also briefly lost against Monacoin (Mona) in February, according to research results. But after the early stages of the outbreak in March, the BTC appears to have regained its dominance.

But although this is the case in the Japanese market, when the overall market indicators are examined, it seems that the Bitcoin-led market has also seen an increase in XRP, when there has been an increase in BTC. Therefore, it seems that this does not affect the price of XRP much in global conditions.

In addition, according to CoinMarketCap data, the market dominance of the leading cryptocurrency has not increased to more than 70% since 2017 and is currently at about 58%. According to analysts, the fact that BTC is at very low levels in terms of market dominance is interpreted as “dominance sees the bottom” and it may rise from this point on. So it could be “bad for altcoins” if dominance starts to increase.