Bitcoin's Stagnation Triggers a Ripple Effect on XRP

Bitcoin's price has been stuck below $80,000 since August 25, but its impact on other cryptocurrencies is still being felt. The Bitcoin price climbed above $81,000 before pulling back to around $78,000 today.

XRP, in particular, has taken a hit, dropping to $1.39 from the $1.70 it reached during the rally that began on August 19.

According to data, XRP's price gained more than 60% between August 19 and August 22, with traders buying on leverage and borrowing against their own money to take bigger positions. However, when Bitcoin turned on August 22, XRP fell roughly 37% in one minute on Bitstamp, from around $1.70 to $1.07.

The borrowed money that carried XRP higher is still in the market, which is why XRP has moved further than Bitcoin in both directions. With $3.66 billion in open interest after the crash, a second Bitcoin drop would hit the same positions again.