Amid the recent turbulence on the cryptocurrency market, XRP experienced a severe price drop, plummeting roughly 40% within a month and currently trading at $0.50. Earlier today, the digital currency even hit a low of $0.476, effectively wiping out all gains made after a favorable ruling from the Securities and Exchange Commission (SEC) in the Ripple case.
This setback did not go unnoticed as Hedgeye CEO Keith McCullough took to X to comment, "#BTC Bag-HODLers, look on the bright side...you could have been Long of Ripple!"
The broader cryptocurrency market has been under strain, with Bitcoin, the world's premier cryptocurrency, recently declining below $26,000. Many analysts and enthusiasts have linked Bitcoin's abrupt 8% price dip to a now-controversial post by Bitcoin Magazine.
The post, which quickly went viral, garnering over 2.4 million views, alleged that Elon Musk's SpaceX had liquidated its entire Bitcoin holdings worth $373 million. However, subsequent evaluations revealed inaccuracies in this claim. The actual source, The Wall Street Journal, clarified that SpaceX merely wrote down the value of the largest cryptocurrency it owns from 2022. This misleading post drew significant backlash, with critics accusing the magazine of spreading "FUD."
XRP's price dip might also be influenced by upcoming legal events. As reported by U.Today, the U.S. District Court for the Southern District of New York has permitted the SEC to file a motion for an interlocutory appeal in its ongoing case against Ripple.
This decision does not greenlight the appeal outright, but it facilitates the SEC's formal request. This development emerges from the SEC's intention to challenge a prior ruling by Judge Torres, which established that specific XRP transactions did not qualify as securities under the Howey Test. Ripple's legal team, however, remains confident, expressing its opposition to the SEC's appeal motion.