@MildBits710 Untrue for many reasons. HFSP
3 reasons why XRP price can continue to fall after a 63% crash in four days
XRP price dropped steeply below $0.3 on Dec. 24, hitting as low as $0.2138 on Binance. The selling pressure on XRP has intensified in the aftermath of the high-profile lawsuit filed by the United States Securities and Exchange Commission (SEC) against Ripple.
There are three main factors behind XRP’s sharp price drop, namely the SEC lawsuit, likely delisting by exchanges and worsening market sentiment.
Ripple lawsuit is worse than EOS and KIN, investor says
This isn’t the first high-profile lawsuit or settlement the SEC has had with a blockchain firm or a token.
EOS and KIK both settled with the SEC, and according to Cinnemhain Ventures’ Adam Cochran, they were considered as security violations at the point of sale.
In regards to XRP, Cochran emphasized that the SEC is alleging the cryptocurrency is still in violation of securities law. He said:
“Unlike Kin and EOS, where the SEC alleged the securities violations were just at the point of sale, the SEC is alleging here that $XRP is *STILL* in violation of securities law present day. That means they believe it is currently a security, hence the exchange reactions.”
Several attorneys similarly noted that Ripple could struggle to plead ignorance due to the documents cited in the lawsuit. Hence, the lawsuit becomes more complex for Ripple to deal with, considering that CEO Brad Garlinghouse said he would fight it out. Cochran said:
“They’ve got multiple document points of proof of centralization, acknowledgment of securities issues, and selling practices in writing. There is no room to plead ignorance/stupidity here. They’ve personally named the executives as liable, which the SEC does when they go for a kill shot. This is much more common in fraud action than general securities action.”
Exchange delistings are happening
Cochran also stated that some sources suggested Coinbase had discussions with counsel about the delisting XRP.
Exchanges do not have to delist XRP yet. But, if it is declared a security by the court, lawyers said that exchanges could face various risks and may be forced to delist the token preemptively. Cochran wrote:
“Sources suggesting that Coinbase has already had discussions with counsel about the delisting of $XRP. It seems two potential plans are forming, one which puts the delisting on Friday. Unclear which Coinbase products it will impact but most likely Coinbase and Pro.”
Social media sentiment worsens
Data from Santiment show the social media sentiment around Ripple has significantly declined.
According to Santiment, social media discussions around crypto are still dominated by XRP and the SEC’s lawsuit. Santiment analysts said:
“The topics most prominently being discussed today are dominated by $XRP and #Ripple, as the #SEC has charged the company with selling securities.”
Data from The Tie also shows that the daily sentiment score dropped to its second-lowest level ever this week while tweet volume spiked to record highs.
3 reasons why traders expect continuation after Bitcoin price spike to $24K
The price of Bitcoin (BTC) surpassed $24,000 on Dec. 19, reaching a new all-time high. On Coinbase, BTC peaked at $24,200 and has since consolidated into the $23,500 to $23,800 range.
Three factors pushed the price of BTC upwards within a short period, leading it to a record-high. The factors are a large short squeeze, stacked sell orders at $23,600, and the market’s reaction to the U.S. Treasury’s self-custodied wallet rule proposal.
A massive short squeeze occurs again at $23,600
According to data from Bybt.com, $138 million worth of short contracts were liquidated today.
The mass liquidation of short contracts occurred just as Bitcoin surpassed $23,600. The $23,600 area was a key resistance level because of stacked sell orders across major exchanges.
On Bitfinex, the $23,600 and $23,800 resistance levels had large sell orders before the rally occurred. As the Bitcoin price began to increase, it squeezed out shorts and sellers in the $23,600 to $23,800 resistance range.
Typically, a short squeeze happens when a seller is forced to market buy their position because the price of Bitcoin goes up. This causes the buyer demand to surge within a short period, often leading to a large breakout to the upside.
The market is unfazed by the U.S. FinCEN rule
On Dec. 19, U.S. Treasury Secretary Steven Mnuchin revealed a rule proposal concerning self-custodied wallets.
The rule requires exchanges to keep track of withdrawals and deposits above $3,000 that originated from non-custodial wallets. If the transactions surpass $10,000, then exchanges would have to report directly to the Financial Crimes Enforcement Network (FinCEN).
However, as analysts explained, the rule itself is not as bad as industry executives initially thought. Cointelegraph reported that unless the proposal becomes law, Bitcoin price and the wider crypto market would likely ignore the news.
Jake Chervinsky, a general counsel at Compound Finance, said:
“Let’s look on the bright side for a minute. This doesn’t require KYC for every transaction with a non-custodial wallet. It isn’t an outright ban on self-custody. It doesn’t prohibit the act of using a permissionless network. It really — REALLY — could have been much worse.”
Still, despite the positive catalysts, in the near term, traders believe Bitcoin could consolidate or pull back, due to the overextension of the rally.
Scott Melker, a cryptocurrency trader, pinpointed the Relative Strength Index (RSI) of Bitcoin on the 4-hour chart to suggest that overbought bear divergences are likely to occur. He said:
“Closed my $BTC leveraged long. Overbought bear divs are likely, not guaranteed. But I would love to long a retrace if given the chance. Especially a retest of the old all times high as support.”
4 Reasons Why Bitcoin Has Finally Surpassed $20,000
Fundamental supply metrics, user behavior, new developments and more pushed bitcoin past the $20,000 mark before 2020 came to an end.
The post 4 Reasons Why Bitcoin Has Finally Surpassed $20,000 appeared first on Bitcoin Magazine.
There are a hell of a lot more reasons to expect Bitcoin to go up right now than down.
End of Year Approaching: Here are the Top Reasons to Be Bullish on Crypto in 2021
2020 has seen the cryptoeconomy turn decidedly bullish again for the first time since the first days of 2018. What’s changed since then? Well, just about everything. In a macro sense cryptocurrencies are now officially viewed as a hedge against mainstream assets among the growing number of mainstream users who are familiar with the monetary tech. […]
The post End of Year Approaching: Here are the Top Reasons to Be Bullish on Crypto in 2021 appeared first on Blockonomi.
Them: “That thing you are doing that is harming no one should be illegal because <insert reasons>” Me: Let’s skip past all the boring parts and you go ahead and send men with guns.
Me: Let’s skip past all the boring parts and you go ahead and send men with guns.