The crypto market is bullish today as Ripple (XRP)’s victory over the SEC has revived the entire market. Bitcoin price has reached its highest level in a year. Many leading altcoins exploded. Cryptocurrency analyst Alex Krüger says this development heralds an altcoin season.
Is the Ripple decision the igniter of a new altcoin season?
Bitcoin, Ethereum, XRP, Cardano, and numerous altcoins surged after a US Federal District Judge ruled that XRP was not a security. Accordingly, the crypto market was dominated by green today. Ripple’s victory created a serious stir in the market. Crypto analyst and economist Alex Krüger says this will likely kick off an alt season.
XRP price reached a 1-year high of $0.93 on July 13. Thus, it led the rally, gaining more than 75% on the day. Bitcoin price has reached over $31,800, its highest level in the past year. Stellar, which is similar to XRP, posted an increase of over 67%. With this move, it broke above the 9-month high of $0.19.
Three main factors influencing today’s crypto market rally
Crypto liquidations rule the day
Today’s rally has fueled a wave of short liquidation across the market, totaling over $180 million in 24 hours. XRP short liquidations take the lead with the largest single liquidation of $2.8 million in a single transaction on the BitMex exchange. In total, $27.3 million worth of XRP shorts were liquidated within 24 hours.
US dollar index (DXY) continues to cool
Another positive sign for crypto market prices is the cooling US dollar index (DXY). Historically, when the DXY index retreats, sentiment towards risky assets like Bitcoin increases. DXY continues to cool after CPI data showed the smallest 12-month increase since March 2021. In a perfect world, investors would ideally see a retracing DXY as a reason to increase sentiment towards risky assets like cryptocurrencies.
The DXY retracement was in line with the return to form for Bitcoin and altcoins. Historically, Bitcoin price and crypto markets have been moving in opposite directions after the cooling in DXY.
Bitcoin ETF buzz
Previous speculation about the potential of the first Bitcoin ETF approval in the US has helped the crypto market. However, hopes have faded a bit since the application rush at the beginning of July. Some analysts speculate that Ripple Labs’ recent victory over the SEC may make it more difficult for Chairman Gary Gensler to reject existing Bitcoin ETF applications.
Mike Novogratz, founder of Galaxy Digital, places great emphasis on the approval of the spot Bitcoin ETF. Novogratz believes this will essentially be a government seal of approval for Bitcoin. Bitcoin and altcoins still have risk events that can affect the price. However, the Bitcoin Fear & Greed Index highlights that investors are more likely to buy risky assets.
In general, price fluctuations will continue to be seen in the crypto markets. The positive news of Ripple’s victory over the SEC provided a nice short-term boost in crypto prices. However, the reaction of the market to any new sanctions or economic recession will be the real determinant of the direction the market will choose.
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