Bitcoin experienced a slight decline in Tuesday morning trading in Asia, following a profitable day on Monday, as investors engaged in profit-taking activities. Alongside Bitcoin, other leading non-stablecoin cryptocurrencies, including Ether, also registered losses. However, XRP, a notable exception, saw an increase in value due to speculation regarding its potential undervaluation amidst positive developments in the ongoing lawsuit faced by XRP developer Ripple Labs in the United States. In the U.S., stock futures increased after President Joe Biden and Republican House Speaker Kevin McCarthy agreed to raise the government’s debt ceiling over the weekend, successfully averting a default. Nevertheless, investors may now shift their focus towards concerns of inflation and interest rate hikes.
At 9:30 a.m. in Hong Kong, Bitcoin fell by 1.45% over the past 24 hours, reaching US$27,792, although it still maintained a 2.95% weekly increase, according to CoinMarketCap data. The world’s largest cryptocurrency peaked at US$28,300 on Monday morning in Asia, marking its highest price since May 8.
Justin d’Anethan, the head of APAC business development at Belgium-based crypto market maker Keyrock, stated, “With both parties in the US finding agreement to raise the debt ceiling, investors were allowed a dose of optimism.” However, he also noted the possibility of short-term profit-taking, as some traders believe the global economy still has challenges and a potentially harsh landing.
Ether, the second-largest cryptocurrency, experienced a 0.96% decrease, reaching US$1,898, while holding a weekly gain of 3.62%.
Interestingly, XRP was one of the top 10 non-stablecoin tokens to record gains in the past 24 hours, rising by 2.09% to US$0.4922 and experiencing a 6.72% increase for the week. This surge can be attributed to developments in the lawsuit filed by the Securities and Exchange Commission (SEC) against Ripple Labs. Ripple Labs utilizes XRP in its blockchain payment protocol. Pro-Ripple attorney John Deaton tweeted on Sunday that the court will disclose internal documents indicating that former SEC director William Hinman claimed in 2018 that sales of Ether tokens were not considered securities transactions. This revelation could potentially undermine the SEC’s allegation that Ripple Labs’ sales of XRP were illegal securities sales. Deaton further noted that even if the SEC and Ripple settle, the Hinman documents will become public, supporting his belief that XRP is undervalued and predicting it will attract more buyers, potentially surpassing US$1.
Over the past 24 hours, the total market capitalization of cryptocurrencies experienced a 1.13% decline, amounting to US$1.16 trillion, while the 24-hour market volume dipped by 5.54% to US$29.64 billion.
The cryptocurrency market witnessed some fluctuations, with Bitcoin and Ether experiencing minor declines, while XRP stood out with notable gains. The agreement to raise the U.S. debt ceiling temporarily boosted investor sentiment, although concerns surrounding inflation and interest rate hikes may resurface. With its ever-changing dynamics, the crypto market continues to attract attention and intrigue from traders and investors worldwide.
