CoinLoan Weekly: Global uncertainty, SEC vs. Ripple delay, BTC’s 6-week low
After a wobbly recovery from under $41,000, BTC reached a peak of $42,736.01 on Thursday, April 21. Its ensuing descent wiped out those gains. Over the weekend, the price stayed below $40,000 as the trading volume shrank.
On the afternoon of Monday, April 25, the price plunged to its 7-day low of $38,464.03 and headed upward. Macroeconomic factors affected the market throughout the week, with The Fear & Greed Index fluctuating between fear (27) and extreme fear (23).
As of now, BTC is trading at $40,232.14, with a 24-hour rise of +1.6% and a 7-day uptick of +1.2%.
After a choppy rise at the start of the week, ETH peaked out at $3,167.64 on Thursday, April 21. Its price mirrored BTC as it fell to a narrow range and traded around $39,600 over the weekend.
Monday, April 25, brought the lowest low of $2,811.87. Compared to Bitcoin, Ethereum saw a stronger rebound as it approached its pre-weekend level ($3,013.42 on Friday, April 22).
As of this writing, ETH is trading at $3,007.84, with a 24-hour jump of +2.0% and a 7-day change of +0.5%.
XRP strayed away from BTC and ETH for the second consecutive week. After an uptick on Tuesday, April 19 (to $0.776982), it traded around $0.775 and gradually slid downward, save for a slight upturn on Thursday, April 21.
Monday, April 25, brought a 7-day low of $0.650225. New changes in the SEC vs. Ripple case shared on Saturday, April 23 (the rescheduling of court proceedings) had little effect on the price.
As of now, XRP is trading at $0.687246, with a 24-hour change of -1.9% and a 7-day fall of -8.8%.
Lengthy extension in SEC vs. Ripple case
Last week brought another twist to the SEC vs. Ripple lawsuit. On Saturday, April 23, defense attorney James Filan shared a joint letter to Judge Sarah Netburn requesting new scheduling dates. As the closing briefs are now due before Christmas 2022, the trial is slated to end in 2023. This is a major delay as the crypto community expected a conclusion this summer.
Commenting on the extension, Ripple’s general counsel Stuart Alderoty tweeted, “To all that have been following the case thus far – thank you. Know that Ripple is pushing hard (and the Court is working hard) to resolve the case as soon as possible, despite the SEC time and again doing everything they can to delay.”
On Tuesday, April 19, the SEC got a minor victory as the judge denied a motion by Ripple Lab to strike a supplemental report by Dr. Albert Metz. Based on historical data, the SEC expert had concluded that Ripple Lab had an opportunity to influence the XRP price via news and public announcements.
The US Securities and Exchange Commission (SEC) filed its lawsuit against Ripple Labs on December 22, 2020, alleging it had raised over $1.3 billion through illegal means. If the SEC emerges victorious, XRP will be considered a security in the US.
Bearish sentiment pushes Bitcoin to 6-week low
On Monday, April 25, Bitcoin fell to $38,492, its lowest point over the past six weeks. As the global equity markets are drowning in red, the biggest cryptocurrency is on the losing end.
In the traditional markets, the European stocks and S&P 500 are in decline. Commodities and even gold have followed suit. The US dollar is the only asset on the rise, which proves its dominance as a safe haven asset.
Fed’s impending interest rate hikes have affected the markets for weeks. On Thursday, April 21, US Federal Reserve Chair Jerome Powell admitted that 50 basis points could be on the table for the May meeting while the demand for workers was unsustainably hot. The most hawkish strategy to date could prove risky for the labor market and the US economy overall.
Adding fuel to the fire, the new COVID-19 outbreak in Beijing has triggered fears of a new lockdown. If imposed, it would aggravate issues with global supply chains and bolster inflation around the world. The Russia-Ukraine conflict is also prompting buyers to stay on the fence.
On Friday, April 22, in line with the NASDAQ index, which lost over 2%, Bitcoin slid to around $39,400. Experts note that long liquidations have been neutralizing occasional short pushes. Time will tell if Bitcoin can bottom out after the inflation hysteria subsides.