In a surprise victory in court, XRP has been declared “not a security.” The win immediately resulted in an abrupt change in sentiment surrounding altcoins.
Although the ruling only impacted the Ripple case outcome, it could have a lasting influence on the rest of the space, and spark a sudden altcoin season seemingly out of nowhere. Here’s how.
XRP Wins Case, Revives crypto Market With 100% Intraday Move
As of yesterday and all throughout 2023, if you had suggested it was an altcoin season you would have been very wrong, and potentially stuck holding some heavy bags. Cryptocurrencies not named Bitcoin have suffered from increased regulatory uncertainty, thin order books, awful macroeconomic conditions, and the worst sentiment in years.
Many altcoins remain more than 90% down from their all-time high prices set in 2021. Others, like XRP still haven’t set a new high since 2017. But after a 100% rally in a single day, the cryptocurrency entangled in a several year long court case might end up being responsible for reviving the entire space.
Moreover, such a massive move in XRP took a major dent out of the once thought to be unstoppable rally in Bitcoin dominance.
XRP sucked the dominance out of BTC | XRPUSD on TradingView.com
How A Reversal In Bitcoin Dominance Could Ripple Into Altcoin Season
The headlines in crypto media over the last several weeks heavily covered the rise of Bitcoin dominance. The top cryptocurrency’s total share of the overall market cap of the industry reached 52% — meaning that BTC could swallow up all other altcoins combined.
While still hovering above the 50% mark, today’s move in XRP and coinciding lift in other altcoins has potentially caused a reversal in BTC dominance. If the reversal is sustainable, altcoins could outperform Bitcoin for the next several months, or more.
During bull markets, altcoins tend to beat BTC in performance due to having much less liquidity and a lower market cap. Thus, it takes less capital to move prices. In addition, more obscure altcoins have less orders in the books and are a lot harder to value given their speculative nature. All combined, there is a recipe for a runaway altcoin season fueled by FOMO of the likes we haven’t seen since 2017.
This relationship change might be enough to revert us into altcoin season
— Tony “The Bull” (@tonythebullBTC) July 13, 2023