Market picture
The crypto market has been quietly oscillating around the $2 trillion mark for the past two days. However, this could be a basing formation followed by bullish momentum as the market recovers from the shock sell-off since early August. This sell-off was closely tied to the sell-off in BTC and ETH due to their close ties to institutional holders.
At the same time, it is hard for crypto investors to ignore some positive stories.
XRP recovered back to its historical support line and was trading at around $0.60. News of the SEC’s decision in the case sent the price up 28% in a matter of hours on Wednesday evening. Technically, the price is back above its 50- and 200-week averages and 40% above Monday’s low.
Toncoin has risen over 10% in 24 hours following news of a listing on Binance. At its current level of $6.38, the coin is back to its August 2 high and is recovering faster than other major competitors.
Despite this more high-profile positive news, it is worth keeping an eye on the performance of Bitcoin and Ethereum, as they have the potential to set the tone for the broader cryptocurrency market and act as a sentiment indicator for global risk appetite and herald a change in sentiment in equities.
News background
The court issued a final judgment and fined Ripple $125 million, reducing the fine originally sought by the SEC by 94%. “This is a victory for Ripple, the industry and the rule of law. The SEC’s resistance to the entire XRP community is over,” said Brad Garlinghouse, CEO of Ripple.
BitMEX co-founder Arthur Hayes said who the next US president will be will not make much difference for Bitcoin. In his opinion, it is unlikely that reserves will be created in the first cryptocurrency under any administration due to resistance from the traditional banking sector.
CryptoQuant CEO Ki Yoon Ju has calculated that the wallet holdings of long-term investors in the first cryptocurrency have increased by 404,448 BTC ($23 billion) in the last 30 days. He is confident that in the third quarter, some organizations, large companies and authorities in several countries will announce investments in digital gold.
CryptoQuant’s CEO noted that miner capitulation is almost complete, hash rate is approaching an all-time high, and is likely to remain stable. Mining costs in the US are currently at $43,000 per BTC.
Jump Trading successfully withdrew 11,500 ETH worth around $29 million from Lido Finance’s liquid staking platform. Several experts cited the actions of the company and its associated market maker Jump Crypto as a factor in the market correction.
