The entire cryptocurrency market experienced a significant rally, accompanied by a surge in crypto-related stocks, following a federal judge’s ruling that the sale of Ripple’s XRP tokens did not violate federal securities laws when conducted on exchanges and through algorithms.
Bitcoin (BTC) surpassed the $31,000 resistance level and reached $31,700, its highest point in over a year, according to CoinDesk data.
Various blockchain native tokens, including Solana (SOL), Polygon (MATIC), and Cardano (ADA), which had faced previous lawsuits from the Securities and Exchange Commission (SEC) for being deemed unregistered securities, witnessed a price surge of around 15% in response to the ruling. XRP itself skyrocketed by approximately 70% to $0.80.
In the realm of stocks, Coinbase, which had been subject to its own SEC lawsuit accusing it of selling unregistered securities, experienced a remarkable 24% surge, reaching its highest level since August 2022. MicroStrategy (MSTR) also saw a 12% increase in its stock value. Crypto mining companies also reaped the benefits, with Marathon Digital (MARA) and Riot Platforms (RIOT) witnessing a 14% gain, while Hut 8 Mining (HUT) soared by 19%.
Investors, who had been cautiously observing the crypto market due to the SEC’s strong stance on cryptocurrencies, are now starting to enter the space with renewed confidence following the ruling in the Ripple case. Charles Storry, head of growth at crypto index platform Phuture, explained that the ruling has sparked the beginning of capital flowing back into the crypto market.
Coinbase, responding swiftly to the decision, tweeted its plans to re-enable trading for XRP-USD, XRP-USDT, and XRP-EUR trading pairs on the XRP network as soon as there is sufficient liquidity.
Please note that the response is generated by an AI language model and should not be considered financial advice.
