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The price of Bitcoin continues to trade below $ 24,000 as legal action against Ripple Labs rocked the XRP market. Bitcoin is the only asset in CoinDesk20 with a positive 24-hour return from 4 p.m. ET.
The price of bitcoin has rebounded between $ 22,000 and $ 24,000 since Friday.
Despite its monster rally in the fourth quarter of 2020, bitcoin’s volatility has remained low. There was a slight increase in December as bitcoin continued to hit new highs, but 180-day volatility is at its lowest level since February 2017, according to data from Coin Metrics.
What’s the next price to guess. But on Twitter, Ki Young Ju, CEO of cryptocurrency data provider CryptoQuant, sharing his optimism, saying, “BTC will break $ 25,000 without retesting $ 21,000.”
Part of the reason for Ju’s predictions is the large exits from Coinbase, which could be seen as transfers to Coinbase’s cold stores following new non-prescription transactions for institutional clients.
Sharing Ju’s market outlook, Zoran Scekic, managing partner of cryptocurrency trading firm Zorax Capital, also took to Twitter, calling market conditions for Bitcoin a “consolidating or rising trend.” “. Regardless of the name, the current bitcoin trend has resulted in returns of over 200% since the start of the year, with a gain of around 20% so far in December.
Along the way, bitcoin’s correlation with traditional markets continued to weaken, according to data from Coin Metrics, with the 90-day correlation between bitcoin and the S&P 500 stock index at its lowest level in just. before the stock market crash of March 2020.
Following the announcement of the SEC’s lawsuit against Ripple, XRP investors face a very unhappy Christmas weekend. The fifth largest cryptocurrency by market cap fell more than 40% on Wednesday at 9:00 p.m. UTC (4:00 p.m. ET), trading hands around $ 0.27.
Ripple CEO Brad Garlinghouse warned Monday that the United States Securities and Exchange Commission (SEC) was planning to take legal action, according to an earlier report from CoinDesk. Sure enough, on Tuesday afternoon, the SEC filed a complaint claiming that Ripple Labs violated federal securities laws by 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 a “negative impact” on its trade deals with Ripple following the SEC lawsuit.
But some investors are not that patient. Cryptocurrency money manager Bitwise liquidated its XRP, worth $ 9.3 million, following the announcement of the SEC lawsuit. “The Fund liquidated its position and reinvested the proceeds in other portfolio assets,” Bitwise wrote to clients.
Digital assets on CoinDesk 20 are down on Wednesday. Bitcoin is the only asset in the index with a positive 24-hour return at 9:00 p.m. UTC (4:00 p.m. ET), with a gain of 0.4%.
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