As a seasoned crypto investor who has navigated through the 2017 bull run and survived the subsequent bear market of 2018-2023, I have learned to be cautiously optimistic about market trends. However, the recent events surrounding Ripple’s legal victory over the SEC have me more hopeful than ever that we might finally be on the cusp of an altcoin season.
The crypto market has seen its fair share of predictions and promises over the years, many of which failed to materialize, especially during 2023. However, recent events, particularly Ripple’s XRP partial legal victory over the US Securities and Exchange Commission (SEC), may have finally set the stage for the long-anticipated altcoin season, which many analysts now see on the horizon.
Altcoins on the Rise as Ripple Prevails
Over the past three years, crypto investors and traders have been eagerly waiting for a major market transformation. As highlighted by analyst Matthew Perry, certain altcoins such as XRP and Ripple’s native token, are showing promising signs of growth. Meanwhile, Binance Coin and Solana continue to face challenges.
In contrast, Bitcoin (BTC) and Ethereum (ETH) have been on an upward trajectory lately. Specifically, Bitcoin’s price rose by 1.20%, while Ethereum experienced a 2.90% increase over the past 14 hours. Impressively, these digital currencies surged by 8.50% and 15.90% respectively in the last seven days.
Source: CoinMarketCap
Currently, Bitcoin’s market influence has dropped from 57% to 54.3%. This decrease is usually a sign of an “altcoin season,” where other cryptocurrencies gain prominence. Perry believes that such trends tend to appear approximately six months following Bitcoin’s halving, and predictions point towards a possible new record high in the year 2025.
The ongoing legal dispute between Ripple and the Securities and Exchange Commission (SEC) has been a significant topic in the world of cryptocurrency since 2020. Essentially, the SEC claims that Ripple’s sale of XRP was not properly registered as a securities offering. This court case has had a substantial impact on the market, worsening the slump that lasted throughout most of 2023.
In 2024, Ripple’s legal victory against the SEC had a substantial impact on market sentiment due to the improved clarity it provided regarding XRP‘s status. Although Ripple agreed to pay a settlement of $125 million (less than the initial $2 billion demanded), this decision established that XRP is not considered a security in secondary market transactions. This ruling has eased the uncertainty surrounding the asset, providing comfort to its owners.
Why Altcoin Season Is Likely Approaching
In simple terms, the Bitcoin block reward reduction (halving) scheduled for early 2024 might have a substantial effect on the overall cryptocurrency sector. Previously, such events have typically led to a rise in the market, with altcoins often benefiting around six months post-event due to increased investor interest.
At present, the overall worth of the cryptocurrency market stands at approximately 2.19 trillion dollars. Bitcoin has soared to around 63,000 dollars, and Ethereum has gone beyond 2,600 dollars. This consistent growth in Bitcoin’s value, along with the impressive showing by alternative coins such as XRP, hints at a possible change in market dynamics.
Moreover, growing worldwide curiosity about using cryptocurrencies and more defined rules after Ripple’s settlement have sparked optimism. As the market matures and broadens with novel uses, some think that we might be on the verge of the long-awaited altcoin boom at last.
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2024-09-23 11:21