Swyftx analyst Pav Hundal said that traders and investors in XRP A so-called "bloodbath" may be in store if Bitcoin's dominance continues to grow in the market.
According to him, the real danger for highly leveraged bulls is the relative strengthening of Bitcoin. The rotation of capital into digital gold can trigger a large-scale collapse of the asset's quotations, and then traders will suffer huge losses.
He stressed that the market is currently seeing an increase in open interest in futures XRP to levels twice the 2021 peaks. Recall that a few days ago, the above figure jumped to $4,29 billion, but subsequently fell to $3,54 billion. For comparison, in April 2021, it did not exceed $2 billion.
The expert considers the current situation as close to euphoria among traders. However, everything can change at any moment, especially if the dominance Bitcoin will increase in the medium term, the expert explained.
Only if digital gold stabilizes will the negative scenario be avoided and spot volumes will again demonstrate upward dynamics, the expert pointed out. This day came rather quickly on December 5, when the capital inflow amounted to $7,1 billion.
