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Currencies BitCoin Bitcoin: Is the Ripple Selloff Behind the Rally?

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Bitcoin prices are on another move up and look set to print yet another day in the green. After yesterday’s pause that saw prices fall close to the 38% Fib retracement near $500, BTC/USD is back at doing what it does best, going up. The daily open stands at $518.99 on BTC-E, from here, the cryptocurrency rallied to a daily high of $568.99 before falling back. The retracement saw prices retreat to $547, only to rally again 1 hour later to $557 on BTC-E. Prices are slightly higher on BitStamp at $568.10. The highest high reached today on Stamp stands at $586.

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An interesting (and highly speculative) theory has been circulating about the reason behind the recent rally. Few days ago, alternative currency and payment system Ripple experienced a massive crash in prices, losing almost 40% instantly. The fall was the result of this forum post by the project’s co-founder Jed Mccaleb. Jed announced that in two weeks time he will sell his entire stake in Ripple, estimated at around 9 Billion XRP, as much as 9% of all XRP ever created, or nearly 100% of the XRP currently on the market. In the coming days, the crypto lost over 66% of its value.

Bitcoin enthusiasts have speculated that the resulting panic from the move led many Ripple supporters to sell their XRP for bitcoins. As of yet, we haven’t found any proof to confirm that the outflow of funds from Ripple is moving into BTC. Due to the selloff, Ripple has fallen to the number 7 spot in its total market cap, according to Coinmarketcap.com. The altcoin previously occupied the number 2 spot.

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