Gold 1876,815
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EURUSD 1,221
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DJIA 30115,50
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OIL.WTI 48,19
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DAX 13596,065
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On Wednesday, terrible news came out for the crypto industry. The US Securities and Exchange Commission (SEC) has filed a lawsuit against Ripple. The agency alleges that the California-based blockchain company sold unregistered securities in the form of XRP tokens to retail investors for seven years. And generated $1.3 billion in revenue.
BTC
For those who only follow BTC, a little clarification. Ripple is the 4th most capitalised cryptocurrency. The company that issued it is based in the US and works closely with US banks. It is a shareholder in the world’s second largest money transfer system, MoneyGram.
One could argue that 99% of cryptocurrencies are even more vulnerable to potential SEC claims. So this is indeed a black day for the cryptocurrency market. Ripple tokens are down 35% in the moment.
Against this backdrop, bitcoin, by mid-day, had fallen from $24,000 to $22,900. There was panic in the market and a massive sell-off of any altcoins. But, suddenly, bitcoin surged upwards like a phoenix bird, briefly surpassing the $24,000 level again.
What does that tell us?
The first cryptocurrency is in the strongest bullish trend. Any pullbacks, even on the worst news, are used by investors to ramp up purchases. Speculators follow the usual pattern: they sell on a fall, but they cannot buy back the asset (cheaper) any further, the price is constantly rising. Thus, more and more “smart money” is pouring into the market, standing on the trend. The situation resembles what we saw in late spring and summer on the US stock market. Any pullbacks were immediately redeemed.
Therefore, in the last days before New Year and the first days of the new year, we could see very strong moves in the low liquid market. There is a high probability of not only touching the $25,000 level, but also significantly exceeding it.
What awaits us today?
01.00 Address by Bank of Japan Governor Kuroda
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