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March 9th, 2023. Ripple (XRP) shines on news that it is likely to win a lawsuit initiated by the US regulator, according to the ATTMO weather-inspired crypto AI forecasting tool. The two crypto giants, Bitcoin and Ethereum continue to face stormy and cool times ahead of the likelihood of higher interest rates. ATTMO aims at generating potent signals to help traders optimize, manage, and trade cryptocurrencies.
Ripple (XRP) shines on news of potential lawsuit win ☀️
Comments made by the attorney of Ripple holders, John Deaton, about the latest development in the lawsuit initiated by the US regulator – the Securities and Exchange Commission (SEC) – against Ripple in December 2020 boosted the price of XRP. Deaton tweeted that the expert opinions put forward by the two parties won’t be considered by the judge. This increases the likelihood that Ripple will win the court case against the SEC and brings clearer regulatory clarity to the US crypto space. “I seriously doubt that we see significant delay from here. Could be tonight or in a couple of weeks,” Deaton forecasts. Ripple rose 3.8 percent on the news.
Silvergate Bank announces plans to liquidate, puts pressure on the crypto sector
The general mood in the crypto universe does however remain subdued. The crypto lender Silvergate (SI.N) overnight announced plans to “voluntarily” liquidate Silvergate Bank. The liquidation plan includes full repayment of all deposits, Silvergate said in a press release.
Last week the bank announced it would have to delay filing its annual figures, news that put pressure on the entire sector. Silvergate used to be “the” bank of numerous fintech and crypto firms. Several clients, including crypto trading platform Coinbase and the investment fund Galaxy Digital, have since switched to its competitor Signature Bank (SBNY).
Investors move away from riskier assets as interest rates are set to rise📈
On top of this, investors move away from riskier assets such as stocks and cryptocurrencies now that the Federal Reserve head Jerome Powell has signaled that interest rates will be raised at a faster pace than previously expected by the market. When testifying before the House Financial Services Committee, Powell underlined that the size of the upcoming rate hike had not been made yet. The Fed’s next rate decision will be announced on March 21. Analysts expect a rate hike between 25 and 50 basis points.
US Senate holds first-ever hearing on the environmental impact of crypto
The first-ever hearing on the environmental impact of the crypto industry took place in the US Senate overnight. It was held in response to the Crypto-Asset Environmental Act introduced in December 2022. This bill would force all crypto miners using more than 5 megawatts to comply with the US Clean Air Act, i.e., disclose their CO2 emissions.
India announces new regulations for crypto transactions
In India, the finance ministry announced that all crypto transactions, safekeeping, and related financial services will fall under the country’s Prevention of Money Laundering Act. Financial institutions will have to maintain a record all transactions for a decade, a notice in the Gazette of India shows.
Crypto market drops below the $1 trillion threshold 🌧️
Yesterday, the price of Bitcoin dropped by 1.5 percent, while that of Ethereum yesterday fell by 1 percent. The combined market capitalization of the two cryptocurrencies makes up nearly 60 percent of the crypto space. Among smaller cryptocurrencies, Ripple rose 3.8 percent and Binance 1.2 percent.
The price of Bitcoin has dropped by nearly 8 percent over the past week, and Ethereum’s by nearly 7 percent. The crypto market’s market cap has as a result dropped below the 1 trillion US dollar threshold and is now valued at 993 billion dollars.
This afternoon, both Bitcoin and Ethereum are set to continue to fall as investors sell off riskier assets now that interest rates are set to be raised in both the US and Europe. The crypto forecast compiled by ATTMO foresees continued cool and stormy weather in the 24 hours ahead for Bitcoin (BTC), Ethereum (ETH) and Uniswap (UNI)) with temperatures dropping to as low as 5. The forecast is much brighter for smaller currencies such as Litecoin (LTC), Ripple (XRP), Avalanche (AVAX) and Binance (BNB) with sunny spells and temperatures in the 50s.
News that the draft bill introduced by US Senators Kirsten Gillibrand and Cynthia Lummis will be passed on to the US Congress during the course of April should support the US crypto scene. The bill aims at creating a regulatory framework for the crypto industry. The bill should bring greater clarity to whether crypto firms fall under the jurisdiction of the SEC or the Commodity Futures Trading Commission (CFTC).
These forecasts are not trading advice; they are only decision-support tools. They do not include information that is specific to the user; in particular, they do not account for their personal risk appetite or market assessment.