In a surprising court victory, XRP has been declared “not a security.” The win immediately triggered a sudden change in the sentiment surrounding cryptocurrencies.
Although the ruling only affected the outcome of the Ripple case, it could have a lasting impact on the rest of the space, sparking a sudden altcoin season seemingly out of nowhere. Here’s how.
XRP Wins Case, Revives Cryptocurrency Market With 100% Daily Movement
As of yesterday and throughout 2023, if you had suggested that it was altcoin season, you would be deeply mistaken, and you would likely be stuck carrying some heavy bags. Cryptocurrencies other than Bitcoin have suffered from heightened regulatory uncertainty, thin ranking books, outrageous macroeconomic conditions, and the worst sentiment in years.
Many cryptocurrencies are still down more than 90% from their highs set in 2021. Others, like XRP, still haven’t hit a new high since 2017. But after a 100% rally in one day, they overlapped. The cryptocurrency in a multi-year court case may end up being responsible for the revival of the entire space.
Moreover, such a massive move in XRP has greatly affected what was previously thought to be an unstoppable rise in Bitcoin dominance.
XRP sucked the dominance out of BTC | XRPUSD on TradingView.com
How reversing Bitcoin’s dominance could turn into Altcoin season
The headlines in the crypto media over the past several weeks have extensively covered Bitcoin’s rise to dominance. The total share of the top cryptocurrency in the total market capitalization of the industry is 52% – which means that Bitcoin could swallow all other digital currencies combined.
While it is still hovering above the 50% mark, the move in XRP today and the concurrent rise in other altcoins has caused a reversal of BTC dominance. If the reversal is sustainable, the cryptocurrency could outpace bitcoin in the next several months or more.
During bull markets, altcoins tend to outperform Bitcoin due to having much less liquidity and a lower market cap. Thus, it takes less capital to move prices. Additionally, more obscure altcoins have lower orders on the books and are more difficult to evaluate due to their speculative nature. All together, there is a recipe for a runaway FOMO-fueled altcoin season of likes not seen since 2017.
# Bitcoin dominance (left) f $XRP (right)
This change in relationship may be enough to get us back into altcoin season
This is worth watching closely – I’m seeing early reversal signals in… $BTC.D pic.twitter.com/vm7wLWDEfA
– Tony “The Bull” (tonythebullBTC) July 13, 2023