Will Cryptocurrency Prices Remain Propped-Up by Good News?

March 15, 2022

Cryptocurrencies: Weekly Update

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Global equity markets have continued to decline in 2022 thanks to an onslaught of bad news events, and the anticipation for even more to come… With the exception of cryptocurrencies of course.

Of course, the crypto market is just as likely as the stock market to bear the brunt of economic pressures ranging from inflation to war in Ukraine. However, the general sentiment of global news regarding the crypto/blockchain industry has actually been relatively positive.

The scale and magnitude of crypto news continues to get bigger as well. Last year, we saw individual cities like Miami, San Francisco, and even New York City claim that they would work to invite and incubate blockchain technology and cryptocurrency services in order to become ‘crypto-hubs’. 

If that wasn’t exciting enough, El Salvador became the first country to adopt Bitcoin as a currency at the national level, which was followed by several other crypto-related initiatives around the world in countries like South Korea, Singapore, Switzerland and many more.

Now, we’re seeing some of the most high-tech and developed economies in the world joining the party. Last week saw pro-crypto news in the US, Dubai (UAE), and South Korea, and just today we watched the European Union specifically make the decision to not outlaw Proof-of-Work mining in the EU. This decision by the EU means that Bitcoin mining will not be a restricted industry for EU member-countries, further emboldening the ongoing development of European cryptocurrency infrastructure.


While we fully expect for Wednesday’s FOMC minutes to have an identical impact to cryptocurrencies as it will to the stock market, we’re also keeping an eye on some other major news that is unraveling in the US regulatory space.

The creator of the XRP token, Ripple Labs, has been involved in a legal dispute with the SEC since 2020 over whether or not XRP was issued as an illegal security. The XRP token has been persona non grata since the onset of the trial, having been removed from the majority of US-based exchanges ever since.

Ripple Labs has been in operation since 2012 which makes it one of the most prolific cryptocurrency projects that's still around today. XRP’s unique blockchain was built to handle massive transfers of capital for minimal fees and at rapid speeds. Many supporters believe that XRP will replace the SWIFT banking system one day due to its technological superiority over the current way of handling international settlements.

Despite XRP being restricted from trading for most US investors, XRP has not fallen off, and has in fact remained effectively correlated with the rest of the crypto market since.

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Ripple was one of the biggest cryptocurrencies in the world before its legal woes set the project back and stunted its rapid growth. So it is understandable why people are starting to get excited about positive developments in the SEC v. Ripple Labs case.

The dismissal of the SEC’s accusations against Ripple would almost certainly lead to the cryptocurrencies' reinstatement across US exchanges, reintroducing access for US investors. 

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Currently, XRP is set up a lot better technically than many other large cap cryptos, with a recovery phase on both price and the 50/200 Real Motion. XRP has also taken out its multi-month downtrend thanks to recent developments in the trial.

With Biden’s Executive Order and the SEC’s already flailing arguments against Ripple, XRP is very likely to come out victorious. If and when this does happen, expect the price of XRP to fly regardless of what the rest of the crypto market is doing.


**If we discussed a cryptocurrency that you would like to trade but isn’t offered on your current crypto exchange, please see coinmarketcap.com in order to view a profile on any tradable cryptocurrency, as well as a list of exchanges that do offer the coin for trading.**

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