The legal battle between Ripple and the Securities and Exchange Commission (SEC) has taken a new twist as top lawyers accuse former SEC Director William Hinman of being paid to attack XRP in favor of Ethereum (ETH).

Following the release of Hinman’s emails and drafts of his June 2018 speech, pro-XRP attorney John Deaton expressed his frustration with the intent of the released documents on a recent live CryptoLaw podcast.

Payments To Disparage XRP In Favor Of Ethereum?

Jeremy Hogan, lawyer and cryptocurrency expert, also weighed in on the matter alleging that former SEC Director of Corporate Finance, Bill Hinman, was paid to give a speech in which he declared that Ethereum was not a security.

According to Hogan, Ripple, a leading cryptocurrency company, has suggested that Hinman was paid by the Ethereum Foundation or someone related to Ethereum to give the speech and give Ethereum a free pass.

Hogan’s claims are based on email exchanges between Hinman and his colleagues, which reportedly show that Hinman had already named his first email “the Ether speech” before he began crafting the speech.

This, according to Hogan, suggests that “right from the get-go”, Hinman is saying that ETH is not a security, and that was the point of him making the speech.

Hinman’s speech, which was delivered in 2018, was seen by many in the cryptocurrency industry as a landmark moment in which the SEC effectively declared that Ethereum was not a security.

This was seen as a significant victory for Ethereum and the wider cryptocurrency industry, as it provided clarity on how the SEC would regulate cryptocurrencies.

However, Hogan has suggested that the speech was not only a free pass for Ethereum but also an attack on XRP, which was at the time Ethereum’s biggest competition. Hogan’s claims are based on Ripple’s ongoing legal battle with the SEC, in which Ripple has argued that XRP is not a security and should not be regulated as such.

Hogan’s allegations are likely to fuel speculation about the relationship between the SEC and the cryptocurrency industry, and the extent to which the SEC’s decisions are influenced by external factors. However, it is important to note that Hogan’s claims are based on speculation and have not been proven.

At present, the value of XRP stands at $0.4731, indicating a marginal recovery of 0.6% over the past day. This comes after a dip to $0.4564 on Wednesday. Despite the recent drop, XRP enthusiasts remain optimistic and are looking forward to a positive outcome that could potentially boost the cryptocurrency’s price to a new yearly high, surpassing the $0.5833 mark hit in May.

This could position XRP, the sixth largest cryptocurrency on the market, in a favorable position to reach the $1 milestone.

Featured image from Unsplash, chart from TradingView.com

Bitcoin (BTC), the largest cryptocurrency in the market, was expected to continue its bull run after consolidating its gains. However, on June 14th, just before its daily close, Bitcoin suffered a 3% decline, dropping below $25,000 and reaching as low as $24,700, a price level not seen since mid-March.

In light of these developments and the mounting regulatory pressure from the US Securities and Exchange Commission (SEC) on the nascent industry, many are starting to believe that the recent bull run for BTC was nothing more than a fakeout.

Bitcoin On The Brink With Massive Amount Of Liquidations Looming

Bitcoin has been facing a lot of turbulence recently, and the troubles don’t seem to be stopping anytime soon.

The latest data shows that Bitcoin is facing trouble as over $100 billion in liquidations loom, signaling the potential for another crash in the cryptocurrency market. Despite attempting to surpass its nearest resistance levels, Bitcoin has been struggling, with the potential for further downside movements and increased selling pressure.

According to the latest data provided by the trader and crypto analyst under the pseudonym “Bleeding Crypto”, there is a total of $63.9 billion worth of liquidations at the $24,200 price level and $52.3 billion worth of liquidations at the $21,800 mark.

The increased selling pressure in Bitcoin could potentially result in further liquidations and a subsequent crash in the cryptocurrency’s price, delaying any further uptrends and causing a return to the lower price levels seen at the beginning of the year. This could induce fear among investors, further fueling short positions and potentially leading to a vicious cycle.

However, if that’s the case, it’s important to note that there’s also a possibility of a contrary situation, where institutional investors hunt for short position liquidations, leading to a surge in buying pressure and propelling the price of Bitcoin to the upside.

BTC’s Open Interest Skyrockets

Crypto analyst and Crypto Quant author Maartun has recently warned that volatility is incoming in the world of Bitcoin. According to him, although BTC’s price has been going sideways, the open interest in the cryptocurrency has increased by $439 million.

Maartun’s analysis suggests that a significant amount of money is being poured into the market, which could lead to a significant increase in volatility.

Maartun notes that this situation differs from previous occasions, as the funding rates for Bitcoin are trending down and are close to neutral. This means that longs and shorts are in almost perfect balance, creating a situation where any significant move in either direction could trigger a cascade of buying or selling.

Open interest refers to the total number of outstanding contracts in a particular market yet to be settled. In the case of Bitcoin, an increase in open interest typically indicates that more traders are entering the market, which could lead to increased volatility.

The impact of the increase in open interest on Bitcoin’s price and market direction is unclear. While an increase in open interest can suggest a growing interest in Bitcoin and potentially lead to upward price movements, it can also lead to greater volatility and downward price movements if the market sentiment turns negative.

Alternately, according to the latest data from Glassnode, the amount of illiquid Bitcoin supply continues to grow at a rate of 119,000 BTC per month. This suggests that Bitcoin holders are becoming increasingly reluctant to sell or move their coins, leading to a concentration of coins in wallets with a sparse spending history.

This is an important trend to watch, as it suggests that Bitcoin holders remain confident in the long-term potential of the cryptocurrency.

Featured image from iStock, chart from TradingView.com