Digital currency prices have witnessed a noticeable rise over the past few days, with the leading digital currency, Bitcoin, at the top of these rises, which exceeded the $30,000 threshold for the first time since last July.
Meanwhile, cryptocurrencies continue to make gains, benefiting from bullish signals from traditional interest rate-sensitive assets such as gold.
Experts attribute the rise in Bitcoin and a number of other digital currencies to the US Securities and Exchange Commission dropping the lawsuits filed against Ripple executives in the lawsuit that claimed that the company violated US securities law.
Interest rates are the biggest driver in the macro economy right now, but surprisingly, interest rate sensitive assets, like gold, are also seeing upward momentum... and that bodes well for Bitcoin,” said Greg Magdini, Derivatives Director at Amperdata.
Magadini added that war spending usually causes higher inflation, with the Fed at the same time hinting at a pause in raising interest rates at a time when the US economy remains strong. This supports the uptrend for gold and Bitcoin, taking into account the optimism regarding exchange-traded funds (ETF).
Analysts at Blockware Solutions expressed a similar opinion while attributing the market rises to the potential approval of an exchange-traded fund tracking the spot price of Bitcoin.
The US Securities and Exchange Commission dropped its lawsuit against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen last weekend.
This comes after a US judge rejected the SEC's appeal against the July ruling in favor of Ripple.
The legal maneuvering began in 2020 when the SEC accused Ripple of raising more than $1.3 billion through an unauthorized securities offering for digital assets. However, a landmark ruling in July declared that sales of Ripple's XRP to the general public are not securities, but are considered a security only when sold to institutional investors.
After dismissing the lawsuit against Ripple CEO Brad Garlinghouse and Chris Larsen, the SEC and Ripple will enter into further discussions to resolve and settle the case. This move toward a solution is a win for Ripple and sets a precedent for cryptocurrency regulation in the United States.
Noelle Acheson, an economist and owner of the Crypto is Macro Now newsletter, said fears of escalating conflict in the Middle East, tension over the US banking system and general market jitters are pushing Bitcoin and gold higher.
Cryptocurrencies now
The combined market value of the crypto market during these moments of today’s trading amounted to approximately $1.14 trillion. The trading volume reached approximately $41.36 billion.
Bitcoin rose during the last 24 hours to the levels of $30,540, by 3%, while recording weekly gains of 10%. Its market value now reaches $600 billion.
While Ethereum, which is the largest digital currency by market value after Bitcoin, rose by about 3.2% during the last 24 hours, to reach $1,676, with weekly gains of 6.8%, and a market value of about $203 billion.
The price of Binance Coin rose by 2.5% to record $219.
Solana rose by 5.3% during the last 24 hours to $30,112, and by 34% during the last 7 days.
Cardano witnessed a rise to $0.2632, by 2%, while it rose in the last 7 days by 5%.
On the other hand, Dogecoin rose to the level of $0.062464, by 2.6%.
