Crypto Market Review, September 21
Prominent Cryptocurrency Gains 20% Thanks to Success in Court Against SEC
XRP’s 20% rally in the past few days showed us a logical reaction to Ripple’s success in court despite the token’s lack of ties to the prominent financial firm. However, the massive rise in trading volume and improved price performance is just the beginning.
250% to recover
Unfortunately, XRP’s 20% run is close to nothing as the cryptocurrency has lost more than 75% of its value in the past few months. In order to reach values close to all-time highs, XRP would need a massive 250% rally that would bring it back to the $1.38 price level.
Unfortunately, the current net flow of funds in and out of XRP shows that a jump towards the previous all-time high would not be possible without a major market shift. Despite the positive performance of most asset prices today, the total market capitalization remains well below the important $1 trillion level.
Selling the merger in its final stages
The integration update was fuel for most of the assets in the market a few weeks ago and one of the main sources of selling pressure after the upgrade went live. The main reason behind this trend was the “sell news” rule that most investors use, especially in the cryptocurrency markets.
The same market participants who bought ETH back in July or August were actively selling the asset after the successful transition to PoS, which explains why the profitability of the second largest asset on the network has fallen so much after the upgrade.
However, Ethereum developers are already working on the upcoming Shanghai update by releasing updates to the previously existing EIP. The updated proposal will provide a way to pull the validator made on a beacon chain to be converted to an EVM model. The pull must be handled at the execution layer as soon as it is “pulled” out of the consensus layer.
Bitcoin is not recovering
Unfortunately, the short-term recovery of 2% we saw today is not helping the number one cryptocurrency, as BTC has been gradually moving lower, already losing 21% of its value in the past two weeks.
The high probability of an interest rate hike and unexpectedly high inflation are driving investor fears higher, providing further pressure on riskier assets, including bitcoin and other cryptocurrencies.
The results of the FOMC meeting will be announced later today. While most markets are anticipating a 75 basis point rise, the cryptocurrency is moving in the green due to the high probability of a higher recovery taking place after the previously expected decision by the Federal Reserve.
At press time, BTC is trading at $19,284 and has gained about 2.5% of its value in the last 24 hours; However, the trading volume shows that the price hike is purely technical and that investors are still out of the market.