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Why XRP Price Fell By 15% Today After Breakout Attempt?

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XRP price has noted a sharp decline today, declining more than 15%, after a recent breakout attempt. This price slump has sparked discussions in the digital assets space, especially amid a downturn momentum noted in the broader crypto market. Notably, the market was anticipating a “Uptober” rally, while the recent picture suggests otherwise, fueling speculations in the sector.

So, here we explore the potential reasons that may have caused the recent drop in Ripple’s native crypto today.

Why Is XRP Price Falling Today?

There could be several reasons that could have contributed to the recent slump in XRP price. Let’s take a look at the top reasons that may have triggered the recent selloff in the crypto, and see how it is performing now.

US SEC Files Appeal Notice In Ripple Case

The Ripple Vs SEC lawsuit has been one of the high-profile and closely watched legal battles in the crypto industry. Notably, in the latest development, the US SEC has filed a Notice of Appeal challenging some aspects of Judge Torres’s ruling just before the October 7 deadline.

Meanwhile, many in the crypto community were anticipating a potential last-minute appeal by the SEC in the Ripple case. However, this latest appeal seems to have dampened the market sentiment, indicating that the legal battle will be further extended in the coming days.

Simultaneously, Ripple CLO Stuart Alderoty recently said that the firm is considering a potential cross-appeal in the case. Having said that, the investors appear to be staying on the sideline, seeking more clarity on the future of Ripple SEC battle.

Broader Crypto Market Downturn

Another potential reason behind the recent drop in XRP price could be the gloomy trading scenario noted in the broader crypto market. During writing, the global crypto market cap fell nearly 4%, with Bitcoin, Ethereum, Solana, and other top altcoins declining.

This recent crypto market selloff could be attributed to a flurry of reasons like the recent Bitcoin ETF outflow and other macroeconomic factors. For instance, the latest US PMI data showed that the economy is shrinking, which might have sparked the investors’ concerns.

On the other hand, the market is likely to be taking a pause ahead of the US Job data, scheduled for Friday, October 4. The upcoming US nonfarm payroll and unemployment data are expected to provide further cues on the Fed’s potential stance with the monetary policy plans going ahead.

Recently, Fed Chair Jerome Powell signaled confidence towards a cooling inflation. Simultaneously, other Fed officials have also hinted towards another 50 bps rate cut at the US central bank’s upcoming meeting, which sparked market optimism earlier this week.

XRP Price Slips 15% Today

XRP price slipped over 15% today and exchanged hands at $0.5106, indicating the lowering interest of the investors. Its trading volume soared about 16% to $3.21 billion. Notably, the crypto has recently touched the $0.6622 level, sparking market discussions over a further rally in the crypto’s price.

In addition, many market pundits have also shared a bullish outlook on the crypto’s price, suggesting a potential rally ahead. For instance, one renowned analyst said that XRP is preparing for a rally, potentially hitting $3 by Christmas.

However, the latest appeal seems to have dampened the optimistic sentiment in the market. According to CoinGlass data, the XRP Futures Open Interest fell more than 14% to $712 million, indicating a waning market interest in the crypto. It appears that the market participants are seeking further clarity on the legal battle before putting their bets into the crypto.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Franklin Templeton Files For Bitcoin & Ethereum Index ETF With SEC

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9 hours ago

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October 3, 2024

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Franklin Templeton Investments, a trillion-dollar asset manager, has filed a proposal to the U.S. Securities and Exchange Commission (SEC) to launch a Bitcoin and Ethereum index exchange-traded fund (ETF). The fund, dubbed Franklin Templeton Bitcoin & Ethereum Crypto Index ETF, aims to give investors an exposure to both Bitcoin and Ethereum, the two largest cryptocurrencies.

Franklin Templeton Files for Bitcoin & Ethereum Index ETF

In a recent filing, Franklin Templeton has proposed launching a new ETF that will allow investors to gain exposure to Bitcoin and Ethereum within a single fund. The assets of the ETF will be Bitcoin, Ethereum, cash and cash equivalents, which are short-term securities with a maturity of less than three months. 

This fund will open the door for investors to get involved in both cryptocurrencies without having to own the underlying assets.

BNY Mellon, a firm that offers financial services across the globe, will both hold and distribute the fund, and Coinbase Custody will oversee the digital assets of the ETF. The proposed ETF will be benchmarked to the CF Institutional Digital Asset Index, which tracks the performance of Bitcoin and Ethereum based on prevailing market conditions.

Combining Bitcoin and Ethereum in One Fund

This proposed ETF would be the first of its kind to be invested in both Bitcoin and Ethereum in one index fund. It is intended to let investors have a simpler way of investing in two biggest digital currencies by market capitalization. The asset manager aims to make it easier for institutional and retail investors to gain access to the top cryptocurrencies without having to navigate the volatility and intricacies of cryptocurrency exchanges by offering both assets within one product.

Franklin Templeton Bitcoin & Ethereum Crypto Index ETF will be available in the form of 50,000 share blocks. The price per block will be equivalent to the net asset value (NAV) of the Bitcoin and Ethereum held in the fund. However, the ETF will not participate in staking or other forms of earning income with the digital assets.

Subsequently, the ETF filing is a part of the asset manager’s expansion into blockchain technology. Recently, the firm added the OnChain U.S. Government Money Market Fund to the Aptos blockchain. This decision enhances the flexibility of the fund since the use of tokens means that the fund can be bought and sold on the blockchain.

Regulatory Scrutiny from the US SEC

The launch of the ETF is subject to the approval of the US SEC and focuses on protecting investors against fraud and market manipulation of the underpinning assets. The proposal specifically mentions the oversight agreements with regulated futures markets like CME Bitcoin and Ether Futures within its framework.

Crypto ETFs have had a tough time in the US due to strict laws with the Securities and Exchange Commission being quite skeptical of these products. Furthermore, this move comes at a time when a number of applications for crypto-related ETFs have been filed, including that of Bitwise for an XRP ETF. 

The regulator has frequently insisted on having robust measures against fraud and Franklin Templeton’s plan intends to achieve this through using regulated futures markets and a robust system of custody.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Stuart Alderoty Slams US SEC As Ripple Weighs Cross Appeal

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12 hours ago

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October 3, 2024

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XRP Lawsuit: Ripple’s Chief Legal Officer, Stuart Alderoty, has voiced his frustration with the U.S. Securities and Exchange Commission (SEC) following the agency’s recent notice of appeal.

Ripple is now contemplating filing a cross-appeal, potentially targeting both Judge Analisa Torres’ ruling on institutional sales or the $125 million penalty imposed in August.

XRP Lawsuit: Stuart Alderoty Slams US SEC

In a recent X post, Ripple CLO Stuart Alderoty addressed the SEC’s decision to appeal parts of the court’s ruling. In this case, the company has until October 18 to let the court know if it will appeal the decision, as per Fox Journalist, Eleanor Terret. According to her, the aspects of Ripple’s appeal could be based on Judge Torres’ findings that the XRP sales to institutional investors were unlawful under securities laws and the $125 million fine.

The cross-appeal would be wrapped into the same case now heading to the U.S. Court of Appeals for the Second Circuit.

Alderoty stated that he was dissatisfied with the decision of the SEC to pursue the litigation, adding that the complaint was a complete embarrassment to the commission. He noted that the court dismissed allegations of negligence on the part of Ripple, as well as lack of fraud and harmed investors. As much as the US SEC has been adamant, Stuart Alderoty was insistent that Ripple would continue its defense and more so for the rest of the cryptocurrency companies.

Agency’s Appeal and Brad Garlinghouse Response

The SEC filing of its notice of appeal in the XRP Lawsuit is just days before the October 7 deadline, signaling its intent to challenge Judge Torres’ ruling from July 2023. In that ruling, the court found that while XRP’s programmatic sales through exchanges were not securities transactions, sales to institutional investors did violate securities laws. The reason to appeal to the Securities and Exchange Commission can therefore be either or both of these points though more details have not been confirmed yet.

In his response to the decision, Ripple CEO Brad Garlinghouse also stated that the SEC has continued to squander taxpayers’ funds on what they described as a “losing fight.” Garlinghouse further noted that the SEC had not served the interest of investors but instead harmed itself by stating “I’m not surprised. I’m pissed.” He also pointed out that XRP’s status as a non-security for programmatic sales remains unchanged despite the Securities and Exchange Commission’s appeal.

Alderoty also noted the timing of Gurbir Grewal’s resignation, the SEC’s Director of the Division of Enforcement, who stepped down one hour before the SEC filed its appeal on the XRP Lawsuit. Grewal’s departure has raised more questions on the future of the Securities and Exchange Commission and its leadership since Chair Gary Gensler has been under fire over the handling of cryptocurrency and enforcement.

Both Ripple CLO Stuart Alderoty, Brad Garlinghouse  and the rest of leadership, have constantly lambasted the Securities and Exchange Commission for its handling of the case, accusing the agency of being in bad faith. This comes as Grewal departs from the agency, leaving room for speculations whether or not there will be changes to the US SEC’s approach to enforcing laws in the crypto space.

XRP Price Tanks Over 10% Post Appeal

After the US SEC notice of appeal on the XRP lawsuit, the token’s price has decreased significantly. At press time, XRP price was trading at $0.5331, an 11% decline from the 24 hour high.

Despite this dip,  cryptocurrency commentator CredibleCrypto highlighted Bitwise’s recent filing for an XRP exchange-traded fund (ETF), signaling growing interest in the asset.

 

The analyst as a result suggested that XRP could be the next cryptocurrency after Bitcoin and Ethereum to receive ETF approval, despite the ongoing legal case. The appeal, according to CredibleCrypto, is unlikely to affect XRP’s market trajectory in the long term.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Kamala Harris Tax Plan Could Trigger Crypto Market Sell-off

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16 hours ago

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October 2, 2024

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Zac Townsend, CEO and co-founder of Meanwhile, has expressed concerns about Kamala Harris’s proposed 25% unrealized capital gains tax. Townsend, a vocal critic of the plan, warns that the tax could lead to a significant sell-off in crypto markets and harm investors across the board.

Kamala Harris’s 25% Unrealized Gains Tax Proposal

Last month, Vice President Kamala Harris endorsed a bold new fiscal policy that could transform how unrealized capital gains are taxed in the United States. This proposal is part of a broader economic strategy under the current administration. It suggests a 25% tax rate on the appreciated value of unsold assets, including cryptocurrencies. 

Critics argue that this move deviates sharply from traditional tax norms, which have typically taxed profits only upon the realization of gains through sales.

The tax specifically targets the assets of Americans whose net worth exceeds $100 million. While it aims to address inequalities within the current tax system, the policy has stirred unrest among investors. 

According to Townsend, the implementation of such a tax will compel large-scale asset holders to liquidate portions of their portfolios. This could flood the market with digital currencies, potentially driving down prices and diminishing the value of investments.

For instance, high-profile Bitcoin investors such as the Winklevoss twins, who bought their BTC at just $10, could face a crypto tax bill reaching $1 billion under the new policy. Similarly, Tim Draper, an early investor in Bitcoin with purchases at around $632 per coin, could be hit with a $423 million crypto tax demand. This illustrate the impact of such a tax as these large sell-offs could depress cryptocurrency prices universally.

Additionally, Townsend’s critique extends beyond the immediate financial burdens on wealthy investors. He argues that the tax would alter fundamental investment strategies within the cryptocurrency space. Typically, cryptos are favored for long-term holding due to their potential for high returns over time. 

However, with the looming threat of a crypto tax on unrealized gains, the incentive for “holding on” diminishes. This would lead to increased market volatility and a departure from long-term investment strategies.

Political Developments and Market Speculation

In political arenas, Kamala Harris’s tax proposal coincides with fluctuating perceptions of her leadership as she is currently tied in the polls with Donald Trump. The political uncertainty adds another layer of concern for investors as regulatory changes will impact their holdings.

Moreover, Kamala Harris has been urged to host a crypto policy roundtable in October. This event could provide a platform for discussions on the future regulatory landscape for cryptos. Crypto leaders and stakeholders hope that this dialogue will lead to more balanced and inclusive policies.

As the 2024 US elections approach, the crypto industry continues to be a major battleground for both Kamala and Trump. However ,the crypto community has shown more support for the Republican Party candidate. Most recently, analyst Eric Balchunas said that Donald Trump’s victory could influence the fate of XRP and Solana ETFs. 

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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