Ripple Price Could Plunge To Fresh Lows Due To BitMEX

The new swap launch by BitMEX could cause the XRP price to decline, the latest crypto news show. On January 23, the leading Bitcoin derivatives exchange BitMEX revealed its intent to launch a new financial product for XRP. In a blog post then, the company noted that this product would be a “Ripple USD quanto swap” which will allow traders to leverage trades with a leverage up to 50x. Now, the Ripple price could plunge as a result of that.

According to a recent Twitter update from the cryptocurrency exchange, the XRP swap contract is back on track to launch on February 5, 2020 as a post noted.

We at BitMEX are proud to announce that trading of a new perpetual swap on the XRP token (XRPUSD) will begin at 0400 UTC on 5 February 2020.

— BitMEX (@BitMEXdotcom) February 4, 2020

With BitMEX now being one of the most influential trading platforms in the crypto space, the Ripple price could seriously be affected. For instance, BitMEX’s Bitcoin swap processed some $2 trillion worth of volume over its existence.

This is why many speculate that the Ripple price and XRP will have to carry serious burdens because of the new leverage. XRP is right now the third largest cryptocurrency by market capitalization.

According to analysts, the Ripple price could be affected in a similar way like Ethereum was before this. BitMEX’s launch of a swap product for XRP may cause the asset to gain beta against Bitcoin which means that more volatility and lower prices may be coming.

Other analysts in the altcoin news such as Sean Nance noted that with “XRP still being around its lows,” it makes sense for the third-largest cryptocurrency to “pump when BitMEX lists the perpetual contract than dump.”

A trader named Mitoshi Kaku echoed that the Ripple price could decline but it is funny “how people are taking [the launch] as a bearish signal.” He also spoke about how on the same day of BitMEX’s planned swap launch, there is a “bullish signal,” a bullish signal in terms of “‘pivots or breakouts’ for the XRP price’s cycle.”

All in all, the Ripple price could go down but is now stable in the $0.2490 region. Even though it managed to cross $0.2500 yesterday, the price is back in the previous levels and is now using the current market-wide decline as a chance to take a breath before a new rally.