Crypto news: Bitcoin (BTC) recorded a price dump below the $29,000 mark. The cause could be attributed to the doubts raised by the federal judge regarding the decision made on Ripple (XRP).
Bitcoin slips below $29,000 on doubts over Ripple case
The price of Bitcoin (BTC) fell below $29,000 in the day between yesterday and today, touching a low of $28,790, only to rebound in the last few hours. At the time of writing, BTC is worth $29,624.
The cause behind this price dump of the queen of crypto assets, could be attributed to the new doubts raised on the Ripple vs SEC (Securities and Exchange Commission) case in the US, which affects the entire industry.
And indeed, federal judge Jed Rackoff has provided detailed interpretations of the Howey test that is used to define whether or not an asset is a security.
In this way, the decision already made by US District Judge Analisa Torres on 13 July, namely that XRP is not a security, has been called into question.
Indeed, following along with the BTC dump are other crypto assets that have seen a slight bearish trend.
Among the many, there is Ethereum (ETH), which fell as low as $1822 and then rebounded to $1860, but also XRP itself, which from $0.71 fell to a low of $0.68, rebounding at the time of writing to a price of $0.70.
Bitcoin rebounds because of Ripple, but some argue that XRP will reach $500
In recent days of the Bitcoin price bouncing due to doubts about the Ripple case, some wanted to publish their own price prediction on XRP.
Namely, it was Shannon Thorp, head of treasury management at Wells Fargo, who demonstrated her optimism, stating that in the short term, XRP will reach a price between $100 and $500.
Not only that, Thorp specified that it will take four to seven months to reach that price.
In percentage terms, Thorp’s XRP price prediction sees an increase from 14,200% to 71,400%, compared to the current exchange rate.
This forecast was made based on metrics that do not relate to securities, as according to Thorp, XRP would not be a security.
Incoming bull market
Bitcoin spent most of last week below the $30,000 mark, lacking the momentum to sustain the upward push that saw it hit its annual high around $31,800 earlier this month.
Nevertheless, the latest analysis leaves no room for fear for Bitcoin’s price, which is expected to confirm a bullish trend (bull market) soon.
In this regard, the Bitfinex crypto-exchange also seems to confirm this theory. One of its reports states the following:
“When bitcoin re-ascends to a position above its Realized Price, following an extended period of staying below it, this usually signals the onset of a new bull market. This correlation between bitcoin’s price rebound and the initiation of a bull market is a noteworthy trend in the historical performance of the cryptocurrency.”