Former SEC Director Says Ripple’s Legal Fate is Now Worse Than Ever
Ripple Labs, the company behind the prominent XRP, faced legal challenges from the U.S. Securities and Exchange Commission (SEC) for years. Not long ago, the token got declared as a non-security by the Judge, a ruling that has made all of us quite excited. Well, not all of us. Not really.
A Stark Warning
John Reed Stark, who previously held the position of Chief at the SEC Office of Internet Enforcement, provided insights on a decision handed down by SDNY District Judge Jed Rakoff. The decision permits the SEC to proceed with its lawsuit against Terraform Labs and its founder, Do Kwon.
This is a notable development, as Judge Rakoff specifically refused to uphold the distinction made in the Ripple case between institutional sales and those to the public.
The decision made by Judge Rakoff essentially refutes the approach taken in the Ripple case, said Stark. Previously, the court had found differentiation between institutional buyers and those who obtained their coins through secondary transactions.
The court stated that only those who purchased directly from the defendants would have expectations linked to the defendants’ actions. Judge Rakoff, however, found no reason to make such a distinction, emphasizing that the source of purchase does not alter the reasonable expectation of profits from the coins.
The Impact of the Major Questions Doctrine
A further highlight of the decision was the rejection of Terraform Labs’ invocation of the “major questions doctrine.” According to Stark, this legal principle restricts regulatory agencies like the SEC from greatly overstepping their defined role.
While the doctrine has been applied by other crypto defendants, including Coinbase, Judge Rakoff reasoned that the cryptocurrency industry, although important, does not compare to other sectors like energy and tobacco in terms of economic and political significance.
Judge Rakoff’s Prestigious Stance on Securities Law
Widely respected in legal circles, especially among SEC lawyers, Judge Jed Rakoff is considered one of the foremost authorities on securities law within the U.S. federal court system. Since 1996, he has served as a U.S. district judge for the Southern District of New York and has made significant contributions to securities and criminal law.
As other cases come before the courts, the wider crypto community will be watching closely to see how this legal philosophy evolves. Whether or not Ripple’s legal fate worsens, these decisions are shaping the future of how cryptocurrencies are understood, regulated, and integrated into the global financial system.
Altcoin Crash Might Get Worse: Analyst Predicts More Bloodbath in Crypto Market
Renowned crypto analyst Benjamin Cowen has raised alarm bells in a series of tweets regarding the altcoin market, predicting a protracted period of decline. According to Cowen, the altcoin reckoning is far from over, and he anticipates even deeper losses. The analyst attributes this ongoing reckoning to influencers who continue to encourage massive investments in altcoins, thus prolonging the market downturn. Cowen suggests that unless this trend changes, the altcoin casino will remain open until all funds are depleted.
Furthermore, Cowen warns that some altcoin projects may never recover their value, potentially leading to their extinction. While the collective altcoin market capitalization may eventually rebound, he cautions that current investments could become relics in future cycles as new and shiny altcoins capture the attention of investors. Thus, he urges caution in choosing altcoin investments, emphasizing the potential for drastic changes in market preferences.
Cowen also points out that many altcoins are currently trading below their prices from March 16th when Bitcoin was last at $25,000. This vulnerability of altcoins amidst market volatility strengthens Cowen’s prediction of a continued downturn.
However, he remains bullish about Bitcoin’s performance, predicting that it will outshine other digital assets. Drawing from historical patterns, the analyst states that altcoins often suffer significant losses during pre-halving periods. He projects Bitcoin’s dominance on the Bitcoin dominance chart (BTC.D) to reach 60%, indicating its increasing market share.
Also Read: Bitcoin Price Prediction 2023, 2024, 2025: Will The BTC Price Rise Again?
In conclusion, Cowen emphasizes the importance of monitoring Bitcoin’s dominance as a key metric in the crypto space. Neglecting this metric, he warns, could lead to adverse investment decisions. Understanding Bitcoin’s dominance and its relationship with altcoins is crucial for investors seeking to navigate the volatile market effectively.
Altcoin Market Will Get Worse Before Rallying Further – Here’s The Crypto Market Outlook
Halfway through the second quarter of 2023 and the altcoin market continues to experience bearish sentiment despite Bitcoin’s dominance lacking fuel to push beyond 48 percent. Increased profit-taking in the low-cap meme coins for the past few days has increased the overall altcoin sell pressure. Furthermore, meme coins like Pepe and WOJAK that attracted huge crypto trading volume are down more than 50 percent in the past week.
Is Altcoin Season Over?
The altcoin season is majorly hyped due to the high volatility compared to Bitcoin, which over the years has experienced diminishing returns. In the third week of May, most altcoins had already recorded the first bump from FTX-induced lows. However, more FOMO traders are likely to help the altcoin season materialize again in the near term basis.
According to a popular trader on Twitter @cryptotony_, the altcoin market is poised for one more dip before the bulls take over in the near future.
“One more small drop then a hard buyback and we are good for the next month or two I think,” the analyst noted.
Overall, the altcoin market could be waiting for a breakout confirmation from the mother coin Bitcoin and Ethereum which are still trolling from bearish sentiments. According to crypto trader Ali, Bitcoin faces immense resistance before falling above $31k.
“Bitcoin faces stiff resistance ahead, especially between $28,180 and $28,990, where 1.24 million addresses bought 973,220 $BTC. On the flip side, the most important support level is $26,490. Failing to hold above it could trigger a steeper correction to $24,100 or $23,190,” the analyst noted.
Bitcoin Crash To Get Worse, Analyst Predicts Bottom Levels For BTC
The current downfall, followed by the collapse of FTX’s native token, may be a wake-up call for another crypto crash ahead.
Following the recent news of Binance’s acquisition of its rival crypto exchange FTX, several cryptocurrencies surged in the price chart yesterday but soon ignited a fresh bearish rally after witnessing extreme selling pressure due to panic among investors.
Currently, many cryptocurrencies are making long bearish candles, and the market cap has dropped by 10.85% in the last 24 hours, touching the $900 billion mark.
More Bloodbath For Crypto Market
The sudden market crash has surprised investors by wiping billions of dollars from portfolios at once, fading the hope of an upcoming bull run.
The current downtrend of leading assets has worried investors about their predicted short-term goal by the end of December as Bitcoin has broken its crucial support level at $18K with a downtrend of 11%, and Ethereum dropped below by a whopping 18% in the last 24 hours.
The current negative sentiments have drawn the attention of crypto analysts and strategists in providing the next price movement as a prominent crypto expert, Michael Van De Poppe, who is the founder of Eight Global, predicts that the current bloodbath of the crypto market will extend further depending on news and its impact.
According to him, the recent crypto market crash is impactful enough to plunge Bitcoin’s price below $10K in the upcoming days.
However, there is a high possibility that the BTC price may soon reach a bottom price range of $12K to $14K.
If you are planning to invest in the dip, the analyst suggests investing in small incremental amounts regularly (DCA) rather than shorting positions now.
How Far Bitcoin’s Price Can Plunge?
FTX’s native token, FTT, is solely responsible for causing this massive crypto crash as FTX’s insolvency and buyout created an extreme selling and panic among investorst, leading to massive withdrawals of funds from crypto exchanges to avoid upcoming unexpected price fluctuations. The FTT token is currently down by 72%, with a current value of $4.5.
The daily price chart of BTC is not promising, as it is poised to bring another death dance for the crypto industry after its collapse in May.
According to CoinMarketCap, Bitcoin is currently trading at $17,550 with a market cap of $337.5 billion. Bitcoin has recently touched its support level of $17.5K, which was formed back in June.
The RSI-14 indicator has dramatically dropped from a level of 64 to 30, hinting at a highly volatile market trend downside. The MACD line is also retracing downwards quickly to plunge the BTC price more.
Following the recent acquisition of FTX by Binance, BTC made a fake breakout between a resistance zone of $20.5K to $20.8K.
The next support level for Bitcoin is $16.3K, where the Bollinger band’s lower limit is placed. BTC will likely break its support level in the next few days and trade below the price level of $13K.
However, it can bounce back from this price level as the accumulation rate of BTC is increasing exponentially in the dip, which may push its price above the resistance level of $16K by the end of December.
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Crypto Bear Market Will Get Worse In Coming Days – Predicts Tezos Founder
On Wednesday evening, Bitcoin was largely flat, but Dogecoin and Ethereum saw gains with the total market value of cryptocurrencies being roughly constant at $1 trillion. After a largely lackluster market month, cryptocurrency ended October slightly higher, setting up what may be a busy November. Many cryptocurrency companies began to struggle as a result of falling bitcoin prices as the U.S. The Federal Reserve scaled back its pandemic-era support.
Over 70% of the recent peaks have been lost by large corporations like Bitcoin, Ethereum, and others. The Fed, which is steadfastly working to control inflation, is on track to announce another rate hike.
Cofounder of “Ethereum killer” Tezos Kathleen Breitman predicts that the current bear market cycle in cryptocurrencies will only worsen. Breitman explains that cheap money “inflated” the most recent bull run.
She said that “a lot of easy money was pouring into the system.” The co-founder of Tezos thinks that the value of cryptocurrency enterprises has increased. She cited the fact that despite its sales volume dropping compared to 2021, the top NFT marketplace OpenSea is still valued at an astounding $13.3 billion. “There was a lot of cheap money that went in. Valuations went super sky-high,” Breitman noted.
Bear cycle similar to previous cycle?
The analytics company Glassnode compared the bottom of the current Bitcoin market cycle with those from earlier bear markets in its “week on-chain” report on October 31. A double-top rejection from last week’s relief rally appears to have put an end to it. The market was “hammering out a Bitcoin bottom, with almost textbook similarities to earlier cycle lows,” according to Glassnode.
It stated that, similar to earlier cycles, investors and hodlers have suffered significant financial losses as a result of the bear market in Bitcoin. It went on to say that the only thing left is a component of time and investor indifference.
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The Crypto Bear Market Could Have Been Much Worse – Says FTX CEO Sam Bankman-Fried – Coinpedia – Fintech & Cryptocurreny News Media
After Jerome Powell’s remarks at the Jackson Hole Economic Symposium, the price of bitcoin dropped. The asset’s price dropped by almost 6% over the previous week. Bitcoin increased by 2% the previous day, outpacing volume from the day before, and reaching a high of $20,000. Part of the losses from Monday has been recovered by the largest cryptocurrency by market cap.
Sam Bankman-Fried, chief executive officer of FTX, remarked that in terms of asset prices, the crypto winter might have been considerably worse. The sector, according to the billionaire investor, needs competent regulation, and it makes little difference who does it.
He also discussed the many investments his companies had made in cryptocurrency firms. Bankman-Fried claimed that while some rescue investments were successful, others fell short of expectations.
Things will be in control
Even though Bitcoin’s price once again dropped below $20,000 to start the week, the FTX CEO thinks things won’t get too terrible. According to Bankman-Fried, the Bitcoin price situation could have been worse in an interview with Bloomberg.
According to the investor, he is not concerned about the business collapsing any time soon. He labeled the outcomes of investments totaling $1 billion in a crypto bailout as “mixed.” The CEO emphasized that the funding was provided with the goal of assisting cryptocurrency startups, not profiting from transactions.
The investor said that in order to gain support for the cryptocurrency ecosystem, he is actively lobbying Congress in Washington. He responded that it would not really matter when asked about the lack of clarity regarding which regulatory authority may monitor crypto businesses. The Securities and Exchange Commission or the Commodity Futures Trading Commission could regulate the sector, he continued, and that would be great with him.
“What we’ve tried really hard to do over the last year is get the industry to a place where it is happy to accept sensible regulation. I believe tensions have cooled somewhat between regulators and the digital currency companies.”