Morning Crypto Update: Ripple's CEO Addresses XRP Issues on Coinbase, Shiba Inu (SHIB) Surges 5%, and $444 Million in Bitcoin Lands on Binance

As we head into the weekend, market movements reflect traders' anxieties. Ripple’s CEO takes a stand against Coinbase regarding XRP, Shiba Inu (SHIB) sees a 5% increase, sparking speculation about a potential fakeout, while a significant deposit of $444 million in Bitcoin was made to Binance.

Key Takeaways

Bitcoin experienced a slight recovery, trading at approximately $87,836 after dipping below $85,000.
Ripple CEO Brad Garlinghouse criticized Coinbase for misrepresenting the XRP Ledger (XRPL).
The SHIB has risen by 5%, but traders are cautious about a potential price pullback.
An on-chain record shows a transfer of over 5,152 BTC, valued at around $444.73 million, to Binance.

Bitcoin's Recovery Amid Market Uncertainty

Bitcoin is back in the green after a volatile turn in the Consumer Price Index (CPI). After briefly falling below $85,000, BTC climbed to $87,836, representing a 1% increase over the last 24 hours. Latest figures from Binance later indicated a price nearing $88,279. However, Bitcoin remains over 30% lower than its peak of more than $126,000 in October. Ethereum also showed signs of strength, rising 3.4% to $2,938, while SHIB posted a gain of 5%.

Ripple CEO Responds to Coinbase's Misrepresentation

Ripple’s CEO, Brad Garlinghouse, recently addressed a specific issue following Coinbase's description of an incident involving the XRP Ledger (XRPL), incorrectly branded as the "Ripple Network." With a significant network upgrade underway, Garlinghouse emphasized the importance of accurately representing the XRPL.

Coinbase highlighted the incident as "Ripple Network – Delayed Transactions" and stated that they were investigating delays, which frustrated users primarily concerned with moving XRP rather than trading processes. XRPL validator Vet associated this incident with the activation of the fixDirectoryLimit amendment and urged Coinbase to utilize the current XRPL version on its nodes. Ripple's CTO, Mayukha Vadari, echoed this sentiment, clarifying that the XRP Ledger should not be referred to as the "Ripple Network."

Understanding the XRPL Upgrade

The amendment introduces changes that eliminate an outdated limit, which occasionally caused transaction failures even when users had sufficient XRP. The new system now involves locking XRP to create objects, helping to prevent network spam.

Shiba Inu Chart SHIB/USD by TradingView

Shiba Inu's Latest Price Action

The 5% increase in SHIB looks more impressive in headlines than on shorter time frames. On the five-minute chart from December 19, the Shiba Inu coin peaked around $0.00000739, showing signs of rapid fluctuations. Although the price rebounded, it struggled to sustain momentum, leading some traders to speculate it may be a bull trap. This bounce is real but may not guarantee a continuation.

Market Dynamics Influencing Performance

Current macroeconomic indicators also play a crucial role. Bitcoin surged toward $89,000 following better-than-expected CPI results but was quickly sold off, mirroring trends in equity markets. The CME FedWatch odds suggest a 27% chance of a rate cut in January and 57% for March, indicating potential further volatility as short rallies may not last long. Shiba Inu seems to be caught in the same trend.

Significant Bitcoin Deposit Sparks Attention

A major transaction recorded by Arkham revealed a wallet move, attributed to a Bitcoin veteran, transferring over 5,152 BTC to Binance. Valued at around $444.73 million, this deposit included an additional 0.01 BTC transfer. While such deposits don't guarantee immediate sales, they create potential selling opportunities, particularly as market participants brace for reversals over the weekend.

Bitcoin Transfer Source: Arkham

This deposit transforms long-held BTC into an option for immediate selling on the largest exchange. As Bitcoin attempts to remain above the mid-$87,000 area, market sentiments will gauge whether this deposit leads to further selling or remains parked.

The current landscape suggests possible volatility ahead, especially if the 5,152 BTC deposited on Binance triggers further selling and whether XRP withdrawals stabilize post-amendment.

In conclusion, as we look ahead in the crypto market, it seems the theme may remain centered on initial recoveries followed by pullbacks unless Bitcoin manages to reclaim the $89,000 mark decisively. Keep an eye out for ongoing developments in the rising altcoin landscape as well.