Market Wrap: Bitcoin Rangebound as XRP Plummets After SEC Lawsuit

Spread the love
Bitcoin’s price continues to trade below $24,000 as legal action against Ripple Labs rattled the XRP market. Bitcoin is the only asset in the CoinDesk20 with a positive 24-hour return as of 4 p.m. ET.

  • Bitcoin (BTC) trading around $23,500 as of 21:00 UTC (4 p.m. ET) gaining less than 1% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $22,822.26 to $24,086.95.
  • XRP’s sell-off continues with the token’s price dropping another 40% to $0.27 Wednesday.

The price of bitcoin has been bouncing between $22,000 and $24,000 since Friday.

 

BTC/USD four-hour price action
 
Source: TradingView

Despite its monster rally through the fourth quarter of 2020, bitcoin’s volatility has stayed low. There was a slight increase in December as bitcoin continued setting new record highs, but 180-day volatility has been sitting at its lowest levels since February 2017, per data from Coin Metrics.

 

Bitcoin 180-day volatility
 
Source: Coin Metrics

Where the price heads next is anyone’s guess. But on Twitter, Ki Young Ju, CEO of cryptocurrency data provider CryptoQuant, shared his bullishness, saying, “BTC will break $25,000 without retesting $21,000.”

Part of the reason for Ju’s prediction are the large outflows from Coinbase, which could be viewed as transfers to Coinbase cold storage following new over-the-counter deals for institutional clients.

 

Bitcoin price and BTC Coinbase outflows annotated by Ki Young Ju
 
Source: Ki Young Ju’s Twitter

Sharing Ju’s market outlook, Zoran Scekic, managing partner at cryptocurrency trading firm Zorax Capital, also took to Twitter, calling bitcoin’s market conditions a “consolidation or up” trend. Regardless of what it’s called, bitcoin’s current trend has resulted in over 200% year-to-date returns, with a roughly 20% gain so far in December.

Along the way, bitcoin’s correlation to traditional markets has continued to weaken, per data from Coin Metrics, with the 90-day correlation between bitcoin and the S&P 500 stock index at its lowest level since just before the market crash in March 2020.

Ripple

 

Following news of the SEC lawsuit against Ripple, XRP investors are facing a very un-merry Christmas weekend. The fifth-largest cryptocurrency by market capitalization crashed more than 40% Wednesday as of 21:00 UTC (4 p.m. ET), trading hands around $0.27.

Ripple CEO Brad Garlinghouse warned Monday the U.S. Securities and Exchange Commission’s (SEC) planned to file a lawsuit, per prior CoinDesk reporting. Sure enough, on Tuesday afternoon the SEC filed a suit that claimed Ripple Labs violated federal securities laws in selling the XRP cryptocurrency to retail consumers.

Some organizations are taking a wait-and-see approach to this news, such as Ripple partner MoneyGram, which said it has yet to see any “negative impact” on its business arrangements with Ripple following the SEC lawsuit.

But some investors aren’t being as patient. Cryptocurrency money manager Bitwise liquidated its XRP, worth $9.3 million, following news of the SEC’s lawsuit. “The Fund liquidated its position and reinvested the proceeds in other portfolio assets,” Bitwise wrote to clients.

 

XRP/USD daily price action
 
Source: TradingView

 469 Interactions,  2 today

READ ALSO:
MicroStrategy adds extra 205 Bitcoin worth $10m following the price drop

Michael Saylor, CEO of MicroStrategy, today announced the recent million-dollar acquisition of Bitcoin by his publicly traded company on Twitter. Read more

Why you should watch Bitcoin’s Price Movement this weekend

Bitcoin, at the time of writing, was trading around the $48,000-price mark, falling almost 5% in the last 24 hours, Read more

Ethereum Price Movement Analysis for 5th March, 2021

There were some hints from the decline in Open Interest that Ethereum could see a short-term correction under the $1600 Read more

Chainlink, Synthetix, Verge Price Movement Analysis for 5th March, 2021

The altcoin market has shown that market bulls have been on the rise over the past week, with the same Read more

RECOMMENDED READ:  MicroStrategy set to purchase more Bitcoin as BTC spikes above $50K.

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact Us