Bernstein Research, a renowned analytics firm, predicts that Bitcoin (BTC) could reach a price of $1 million by 2023, suggesting a new bull cycle for the cryptocurrency. This forecast raises questions about the potential impact on altcoins, particularly Ripple's XRP.
ChatGPT, an AI-based language model, suggests that XRP's price potential is speculative and depends on factors such as market correlation, market cap proportionality, and adoption rates. Historically, altcoins like XRP have shown a correlation with Bitcoin's price, suggesting that if Bitcoin reaches $1 million, the entire cryptocurrency market could experience significant growth.
ChatGPT also highlights the importance of considering what proportion of Bitcoin's market cap XRP could capture, assuming a proportionality of around 10%. The model also suggests that XRP's price will depend on its adoption rates and use case, particularly in cross-border payments and partnerships with financial institutions.
ChatGPT outlines three scenarios for XRP's price. In the first scenario, XRP's market cap is approximately 10% of Bitcoin's, leading to a potential price of $21. In the second scenario, where XRP captures 20% of Bitcoin's market cap, the price could double to $42. In the most optimistic scenario, with significant adoption and positive developments, XRP could capture 30% of Bitcoin's market cap and reach a price of approximately $63.