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XRP explodes, Bitcoin hits a new 52-week high: Ripple ruling causes prices to rise in the crypto world
Judgment in the USA: Ripple (XRP) is not a security It took years, but it is now clear: the cryptocurrency XRP, which is issued by Ripple Labs, is not classified as a security by a US court. This decision provides relief among market participants and leads to massive price increases for crypto coins and stocks related to the crypto market. District Judge Analisa Torres noted that XRP is only considered a security if it is sold directly to institutional investors. However, trading by private investors on crypto exchanges does not violate US securities laws. Many industry observers see this ruling as a victory for Ripple Labs and a defeat...
XRP explodes, Bitcoin hits a new 52-week high: Ripple ruling causes prices to rise in the crypto world
Verdict in the USA: Ripple (XRP) is not a security
It took years, but now it is clear: the cryptocurrency XRP, which is issued by Ripple Labs, is not classified as a security by a US court. This decision provides relief among market participants and leads to massive price increases for crypto coins and stocks related to the crypto market.
District Judge Analisa Torres noted that XRP is only considered a security if it is sold directly to institutional investors. However, trading by private investors on crypto exchanges does not violate US securities laws. Many industry observers see this ruling as a victory for Ripple Labs and a defeat for the US Securities and Exchange Commission.
The reaction of the crypto market to the ruling was accordingly positive. The XRP price almost doubled on Thursday evening and was trading over 60 percent higher at $0.77 on Friday morning. The market capitalization has increased to $41 billion, making XRP the fourth largest crypto coins and tokens by market capitalization.
Other altcoins also recorded double-digit percentage price gains on Friday. The exclusive crypto TSI index also benefits from this. In particular, the coins and tokens that were named as supposed securities by the SEC in the lawsuits against Coinbase and Binance at the beginning of June are at the top of the winners' list.
Bitcoin is currently trading around three percent higher at around $31,200, after reaching a new 52-week high of $31,814.51 on Thursday evening.
Shares of companies related to the crypto market were also able to benefit from the Ripple ruling. Coinbase shares recorded their biggest daily gain since their stock market debut in April 2021, with a price gain of almost 25 percent. Shares of crypto miners such as Marathon Digital and Riot Platforms also rose sharply, each closing around 15 percent higher. Microstrategy shares reached a new 52-week high of $461.83 and closed around twelve percent higher.
Although it is not a first-class acquittal and the final word has not yet been spoken, the verdict in the dispute between the SEC and Ripple Labs is creating a jubilant mood in the crypto market. It is a first major step towards greater clarity about which cryptocurrencies are categorized as securities in the US. However, the regulatory debate is not over yet.
Investors should be prepared for continued volatility despite the current price gains. Invested investors should take their profits and adjust their targets and stops from the ongoing recommendations for Marathon Digital (+160 percent since initial recommendation), Microstrategy (+60 percent) and Riot Platforms (+115 percent). Furthermore, the long-term buy recommendation for Bitcoin remains.
Note on conflicts of interest:
The CEO and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, as well as the editor-in-chief of this publication, Mr. Leon Müller, are directly and indirectly invested in positions on Bitcoin or related derivatives from which they can benefit from a positive price development. The author of the article also holds direct positions on Bitcoin or related derivatives.