Bitcoin price update: Bitcoin up 380% in 2020 as Ripple price tanks on news of federal prosecution
Bitcoin is in positive territory with XRP routed by news of impending federal prosecution.
- Bitcoin recovers 5.5% on the previous day.
- Bitcoin is up 380% from its lowest to highest price in 2020.
- Ripple loses 32% on news of federal prosecution.
Bitcoin up over 5.5%
Bitcoin is trading in positive territory over the 24-hour period, welcome news for those bullish on the digital asset after a sudden contraction the day before. In the last 48-hour period Bitcoin saw its sharpest fall since recording its newest all-time high only a week ago.
The brief correction reversed at $22,178 putting on 5.5%. Currently trading at $23,470, Bitcoin is the second best performer out of the top five leading cryptocurrencies by market capitalisation. Litecoin shows the most significant gains over the last 24 hours with a gain of 6.3% at $110 according to Gemini Exchange.
Bitcoin market dominance at 66.25% - Coinmarketcap.com
JP Morgan sent a note out to investors on 18 December providing optimism for those long on Bitcoin. The JP Morgan analysts believe that investment inflows to Grayscale Investments are the bellwether for the likelihood of Bitcoin going up or down.
Grayscale Investments controls up to $15.7 billion of digital assets under management and Greyscale reports that over $13.34 billion of that is held in Bitcoin. Inflows to the Bitcoin trust are averaging $1 billion per month right now according to the JP Morgan analysts.
JP Morgan concluded that the amount of money pouring into Greyscale was "too big" to create conditions where there would be "sustained negative price dynamics". More simply, while this amount of money is being placed into Bitcoin it's less likely there will be consistent losses in the price of Bitcoin.
Ripple price drops as federal litigation looms
Brad Garlinghouse, CEO of Ripple Labs, has gone public with the expectation of federal prosecution against the cryptographic payments company with the Securities and Exchange Commission (SEC) alleging that the company acted against securities regulations.
It is understood that the SEC will press civil charges against Ripple Labs, CEO Brad Garlinghouse and co-founder Chris Larsen. Garlinghouse claimed that the litigation will assess whether the fintech company violated securities regulations by offering XRP to investors before filing with the SEC.
The SEC - out of step with other G20 countries & the rest of the US govt - should not be able to cherry-pick what innovation looks like (especially when their decision directly benefits China). Make no mistake, we are ready to fight and win - this battle is just beginning. (3/3)
— Brad Garlinghouse (@bgarlinghouse) December 22, 2020
"The SEC – out of step with other G20 countries & the rest of the US govt – should not be able to cherry-pick what innovation looks like (especially when their decision directly benefits China). Make no mistake, we are ready to fight and win – this battle is just beginning," Garlinghouse tweeted.
With the news breaking over the last 24 hours it isn't surprising that the XRP price has been negatively affected, dropping sharply by a whopping 32% from $0.59 to $0.40 with little sign of arresting the price contraction as at the time of writing.
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