Today, the Crypto Market experienced a significant bull run as various cryptocurrencies, including Bitcoin, Ether, XRP, Cardano, and several alternative coins, surged following a ruling by a United States Federal District Judge stating that XRP is not classified as a security.
On July 13, XRP led the rally by reaching a one-year peak of ₹71.99. This enabled the XRP to mark a remarkable gain of over 70% in a single day. Meanwhile, Bitcoin surpassed its highest value of the year, reaching above ₹26,02,400. Another cryptocurrency, Stellar, which shares similarities with XRP, also experienced a significant surge of over 50%, reaching a near nine-month high above ₹14.81.
Now, let’s explore three of the main factors that influenced the current rally in the crypto market.
Ripple’s Victory Over SEC: Bull Run Coming For Crypto Market
XRP, the controversial cryptocurrency, has experienced a significant surge. Likewise, other tokens like Solana and Cardano, which have recently been categorized as unregistered securities by the SEC, have also seen substantial growth, with approximately 26% and 28% increases respectively.
On Thursday, Judge Analisa Torres, presiding over a US District Court in New York, concluded that the cryptocurrency company’s sale of XRP to qualified investors satisfied the legal requirements of an investment contract under federal securities law.
“Institutional buyers were aware that Ripple was presenting a speculative value proposition for XRP, offering potential profits based on Ripple’s entrepreneurial and managerial efforts.”
However, Judge Torres determined that this did not extend to programmatic investors or the general public. She noted that there was no evidence suggesting that such investors could decipher Ripple’s numerous statements regarding XRP. Furthermore, the judge mentioned that many of the statements referenced by the SEC might not have been accessible to the general public.
The court’s decision has acted as a significant catalyst, propelling the XRP Price to new heights. Following the ruling, the XRP price has surged by 64% in the past 24 hours, currently reaching ₹66. With a market capitalization of ₹3.44 trillion, XRP has now surpassed BNB & USDC Coin to hold the fourth position among cryptocurrencies.
Polygon Network Releases POL Token White Paper
Yesterday, the development team of Polygon put forward a token upgrade plan that would enable holders to validate multiple chains. The proposal is currently pending for community approval. And if it receives the green light, it will lead to a rebranding from MATIC to POL.
As per the announcement, the upcoming Polygon 2.0 upgrade aims to enable the seamless support of multiple chains while maintaining a high level of security. Additionally, it will introduce incentive streams for validators, such as the generation of zero-knowledge proofs. If successfully implemented, this upgrade has the potential to contribute to a further increase in the price of MATIC.
This development pushed the price of MATIC from ₹62 to ₹71.5, increasing by more than 20% in the last 24 hours. Apart from that, the trading volume of Polygon also experienced a bull run, currently at ₹655 billion.
Cooling of the US Dollar Index (DXY) Persists
The cooling of the US dollar index (DXY) presents another positive indication for crypto market prices. In the past, when the DXY index recedes, there is an increase in sentiment towards risk assets such as Bitcoin.
It is possible that the cooling of the DXY will continue. Considering that the CPI data revealed the smallest 12-month increase since March 2021. In an ideal scenario, investors would ideally interpret a declining DXY as a reason to enhance sentiment towards risk assets like cryptocurrencies.
The retracement of the DXY coincides with a resurgence of Bitcoin and altcoins. Historically, a cooling DXY is followed by a movement in the opposite direction for Bitcoin price and the crypto markets.
Conclusion
Although Bitcoin and altcoins are still subject to events that carry risks and can affect their prices. As a result, the Bitcoin Fear & Greed Index indicates that investors are increasingly inclined to invest in assets with higher risk.
In general, the cryptocurrency markets are expected to maintain their price volatility. While the recent favorable outcome for Ripple Labs in its legal battle against the SEC has momentarily boosted crypto prices, the market’s response to future enforcement actions or an economic recession will ultimately determine the path the market follows.
To know more about the developments transpiring in the Crypto Market, go check out SunCrypto Academy.
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