High-profile cryptocurrency gains 20% following court win against SEC
The 20% rise XRP has seen over the past few days was a logical reaction to Ripple’s success in court, despite its lack of ties to prominent financial firms. But the massive surge in trading volume and improved price performance is just the beginning.
Unfortunately, the cryptocurrency has lost more than 75% of its value in the past few months, so a 20% run is near zero for XRP. To reach near all-time highs, XRP needs a massive 250% rally to return to the $1.38 price level.
Unfortunately, the current net flow of money in and out of XRP indicates that it will not be possible to approach previous highs without major changes in the market. Today, despite the good price performance of most assets, the total market capitalization is still below the all-important $1 trillion level.
final merge sale
Merge updates are the fuel for most assets that hit the market a few weeks ago, and one of the main sources of sales pressure after upgrades go live. The main reason behind such trends is the “sell the news” rule used by most investors, especially in the cryptocurrency market.
The same market participants who bought ETH in July or August were actively selling their assets after successfully switching to PoS. This explains why the profitability of his second largest asset in the network dropped significantly after the upgrade.
However, Ethereum developers are already working on the next Shanghai update by releasing an update to the existing EIP. The updated proposal provides a way for validator withdrawals made on the beacon chain to be forwarded to her EVM. Withdrawals should be processed in the execution layer as soon as they are “dequeued” from the consensus layer.
bitcoin won’t recover
Unfortunately, the short-term 2% recovery we saw today doesn’t help the first cryptocurrencies. BTC is slowly falling and has already lost his 21% of its value in the last two weeks.
A likely rate hike and unexpectedly high inflation are fueling investor anxiety, putting further pressure on riskier assets, including Bitcoin and other cryptocurrencies.
The results of the FOMC meeting will be announced later today. While most of the market expects a 75 basis point rate hike, cryptocurrencies are moving green as a likely bailout rally follows the Fed’s previously anticipated decision. .
At the time of writing, BTC is trading at $19,284, up about 2.5% relative to its value over the past 24 hours. However, trading volumes indicate that the price increase is purely technical, with investors still staying out of the market.