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Bitcoin,  Markets Report,  XRP

Markets Report: Bitcoin calms at $23,000 as XRP losses hit 50%

The aftermath of an SEC lawsuit claiming that XRP is a security which Ripple illegally sold to the tune of $1.3 billion could have hit Bitcoin sentiment much harder, the largest cryptocurrency’s supporters say

Bitcoin rejected volatility on Dec. 24 after a fraught trading period courtesy of the $1.3 billion Ripple lawsuit.

Data from price trackers including CoinMarketCap and TradingView showed BTC/USD circling $23,000 on Thursday. 

Rager: Mid term BTC outlook calls for “neutrality”

The pair had ranged throughout the $23,000-$24,000 zone on Wednesday, as mixed signals over the knock-on effects of regulatory attention by the U.S. Securities and Exchange Commission on Ripple and XRP served to spook sentiment.

After maintaining $23,000 support, Bitcoin reduced its corridor, with press-time levels focussing on $23,400.

BTC/USD investigates $23,000 as support on Christmas Eve. Source: TradingView

“Bitcoin in a range between $23,300s to $24,000. A break above $24,000 would lead to bullish continuation but looks like liquidity was grabbed with fake-out,” trader Josh Rager summarized about the past day’s activity. 

“Further pullback with close below $22,550s likely lead to back down to $20k. Currently neutral on low-mid time frames.”

With excitement visibly lacking on short-term spot market moves, investors were cementing bets above and below, with exchange orderbook data showing a wall of sellers forming at $23,700. 

At the same time, stronger institutional hands were hard at work accumulating at $23,000, Grayscale adding more than $500 million in value to its crypto funds in a single day. 

XRP weekly losses pass 50%

Meanwhile, others drew attention to the fact that despite the Ripple news, Bitcoin had managed to preserve its price near all-time highs. This, fellow trader Scott Melker argued, showed increased market maturity.

“Can we talk about how insanely bullish it is that Bitcoin did not react at all to the $XRP news? The market, seemingly, could not care less,” he tweeted.

Other Bitcoin proponents used the advent of the lawsuit to recommend that diehard XRP investors swap their holdings for BTC why they still can.

XRP, the altcoin notionally affiliated with Ripple, nonetheless suffered huge losses on the day. A 15% dip to $0.27 added to existing pain for bagholders, with weekly performance now exceeding 50% in the red.

XRP/USD nosedives over lawsuit. Source: TradingView

“This complaint is wrong as a matter of law. Other major branches of the U.S. government, including the Justice Department and the Treasury Department’s FinCen, have already determined that XRP is a currency,” Michael Kellogg, one of the attorneys for Ripple, commented as part of an official reaction to the lawsuit. 

“Transactions in XRP thus fall outside the scope of the federal securities laws. This is not the first time the SEC has tried to go beyond its statutory authority. The courts have corrected it before and will do so again.”

Elsewhere on altcoin markets, Ethereum lost its $600 support level once more, bringing weekly depreciation to nearly 13%. Traders, however, are keenly awaiting a consolidation period in Bitcoin which they say will allow altcoins more broadly to stage a comeback. 

A provisional timeframe currently focuses on January 2021 for the process to begin.

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Anthony Bevan is a journalist focusing on disruptive finance and cryptocurrency, along with the changing face of the market as Bitcoin gains mainstream adoption. Journalists covering cryptocurrency for Modern Consensus May hold positions in some of the currencies they write about.