As Bitcoin’s 2024 halving nears, XRP investors are watching closely, hoping history repeats itself. Previous halvings have boosted XRP’s price, and this time, Ripple’s recent legal win adds another layer of optimism.

The halving, expected to reduce Bitcoin’s supply and drive up its price, often triggers a market-wide rally that benefits major altcoins. Will XRP ride the wave once again? Let us look at the factors at play.

XRP’s Price Surge in Previous Bitcoin Halvings

In previous Bitcoin halvings, XRP has experienced notable price increases. Following the 2016 halving, XRP’s price surged significantly in the months that followed. After the second halving, XRP’s price rose by 85%. Similarly, following the 2020 Bitcoin halving, XRP increased by over 100%. Investors anticipate the 2024 halving to potentially spark similar movements, especially as historical data shows a strong correlation between Bitcoin’s price increases and XRP’s upward momentum.

The reduced supply of Bitcoin following the halving often results in a market-wide rally, impacting other major cryptocurrencies. XRP, being one of the largest cryptocurrencies by market capitalization, is expected to benefit from this trend. However, past performance is not always an indicator of future results, and market conditions can change rapidly.

Factors That Could Influence XRP’s Price

Several factors could influence XRP’s performance in 2024. Ripple’s partial win against the U.S. Securities and Exchange Commission (SEC) help generate renewed interest in XRP. In July, a New York court ruled that XRP is not necessarily a security, paving the way for more institutional participation. This ruling has already led to a resurgence in Ripple’s partnerships with banks and financial institutions globally.

Market sentiment is another crucial factor. Historically, positive sentiment toward Bitcoin has had a ripple effect on other cryptocurrencies, including XRP. Many traders and investors tend to allocate funds into altcoins like XRP after Bitcoin’s price begins to stabilize post-halving. The upcoming halving is likely to see similar shifts, especially if Bitcoin’s price experiences a significant boost.

XRP’s use case in cross-border payments also continues to fuel demand. Ripple’s payment network, RippleNet, uses XRP to facilitate fast, low-cost international transactions. This demand could further support XRP’s price as the 2024 halving nears. Ripple’s partnerships, particularly in regions like Dubai, have bolstered its market position, with financial institutions adopting its technology.

Bitcoin’s halving has traditionally acted as a catalyst for market-wide price increases.