Bull Market Crypto After Weekend of Pain
It seems like it was business as usual today after the crypto market resumed its upward trajectory after what was an extremely painful weekend for many.
The cryptocurrency market looked like it had turned a corner after a huge sell off at the end of the previous week prompting mainstream news outlets to describe the latest cryptocurrency ‘crash’.
Data from Coinmarketcap.com shows that the total cryptocurrency market value fell by $630 billion in little more than 15 hours settling around $2 trillion at 15:00 hours GMT on Saturday 4th December. Such a massive drawback understandably shocked many traders and investors and led to wild speculation on social media.
However, since the weekend crash prices have recovered well, albeit slowly, with the total market value currently standing at $2.4 trillion, an increase of 8% in the last 24 hours.
Bitcoin and Ethereum drop by over 20%
Bitcoin dropped spectacularly from $57,000 to $45,000, just over 20%, but has since recovered and is currently changing hands for $51,400. Ethereum on the other hand suffered a drop of 21% from $4,650 to $3,650 and is now priced at $4,420.
While price fluctuations like this appear alarming to many, for those long term cryptocurrency investors it seems like just another day in the market. Without significant regulation the market is wide open to manipulation and extremely murky business. Just last week US Democrat Hilary Clinton called on the need for regulation to put a halt to manipulation from ‘Russia and China’.
Kleiman vs Wright finally resolved
This much needed market regulation may be just around the corner as the first of two major cases affecting the entire market was settled today. As previously reported, the case of Kleiman vs Wright could prove pivotal in the confidence of major league investors and today a jury in Miami ruled that Craig Wright and David Kleiman did not have any legal arrangement when the two mined over a million Bitcoin in 2009.
Although Wright must pay the family estate of deceased Kleiman $100 million in damages the judge ruled that there was no claim on the legacy Bitcoin which Wright is thought to have control over.
If the case had gone the other way the Bitcoin held by Wright would have been relinquished and could have been sold on the open market. Now with clarity in the case, high level investors looking to invest in Bitcoin can rest easy knowing there is no chance of 1.1 million Bitcoin entering the market.
SEC vs Ripple Labs seeking clarity
The other case which many people believe will play a key role in the continued maturation of the market is of course the Securities & Exchange Commission vs Ripple Labs. The basis of the SEC argument is that Ripple knowingly sold its native XRP token in the form of an investment security when the company raised funds in 2013.
Ripple of course deny this and are going to painstaking lengths to demonstrate that XRP is in fact a utility token in the remittance and settlement market and has no guarantee of return on investment. If, as seems obvious to many, the SEC lose the case the verdict will set a clear precedent across the market as to how cryptocurrencies and digital assets are defined in an investment light.
With the case against Ripple coming up to its first year anniversary many people are hoping for a resolution sometime in the new year. Needless to say many crypto investors, advocates and enthusiasts alike are hoping for a favourable ruling on the side of Ripple Labs heralding a bright start to 2022.
Author: Mark Harridge
Mark Harridge first came across Bitcoin and began to use its peer-to-peer payment network in mid to late-2011. He quickly understood that this technology would change the world. Mark is passionate about crypto adoption, from a macro economic and institutional perspective, and the numerous factors that fuel the relentless march towards individual self sovereignty and the decentralised society of the future.