As Bitcoin BTC/USD inches closer to its all-time high, experts predict a bullish momentum for the leading cryptocurrency, while XRP/USD is mired in regulatory uncertainty due to the ongoing SEC appeal against Ripple.
What Happened To Bitcoin: Market analysts from Bitget and Hashdex have weighed in on the diverging futures of Bitcoin and XRP, citing regulatory and market factors shaping their trajectories.
Bitcoin is only 9% away from its all-time high of $73,500, and analysts believe the cryptocurrency is on the brink of a significant price rally.
In a note shared with Benzinga, Pedro Lapenta, Head of Research at Hashdex, highlighted the perfect storm of favorable conditions for Bitcoin.
“We're roughly 180 days past the last halving date, and if historical patterns hold, we may be due for an explosive price action in the coming months,” Lapenta stated.
“This will be the first cycle where we have regulated products like Spot ETFs, making it the perfect timing for institutional investors to gain exposure,” he added.
Lapenta also emphasized that the global liquidity environment is creating a positive outlook for Bitcoin. With the Federal Reserve expected to reduce interest rates to address inflation, Bitcoin is expected to benefit from increased money supply and rising global liquidity.
“Historically, Bitcoin’s price action follows global liquidity, and we expect this trend to continue,” he noted.
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What Happened To Ripple: While Bitcoin enjoys favorable market sentiment, XRP faces a more precarious future.
Speaking with Benzinga, Ryan Lee, Chief Analyst at Bitget Research, warned that XRP could experience significant price volatility depending on the outcome of the SEC’s appeal in its case against Ripple Labs.
The SEC’s appeal challenges a previous ruling in Ripple's favor, raising concerns about the long-term prospects for XRP.
"The SEC's appeal in the XRP case has attracted market attention, raising concerns about its potential effects on both XRP's price and overall market sentiment," Lee explained.
He added that if the appeal results in a negative outcome for Ripple, it could trigger a decline in XRP's price. “Should the appeal overturn the previous decision, XRP may face significant price pressure.”
However, Lee acknowledged that if Ripple continues to present a strong case and wins legal battles, XRP’s price could remain stable or even see a boost.
“A favorable ruling or positive investor sentiment around Ripple’s case could stabilize XRP's position or lead to a price increase,” he said.
Lee also pointed out that XRP's long-term prospects are deeply tied to the regulatory environment.
“XRP's future depends heavily on regulatory updates and how Ripple navigates this landscape. As a bellwether for regulatory action in the crypto space, XRP's performance could have wider implications for the entire industry.”
The broader regulatory environment in the U.S. is a key factor influencing both Bitcoin and XRP.
While the SEC has targeted established companies like Ripple and Coinbase, the upcoming U.S. elections may bring more clarity to the regulatory framework surrounding cryptocurrencies.
Both analysts agree that clearer regulations could benefit both assets, especially as institutional investors await regulatory certainty.
Lapenta also noted that both major U.S. presidential candidates seem more open to the crypto sector, which may result in more favorable regulations after the elections.
“The upcoming U.S. elections will be crucial for providing regulatory clarity, impacting token regulation and broader adoption,” he said.
What’s Next: Both assets are set to be major topics of discussion at the Benzinga Future of Digital Assets event on Nov. 19, where industry leaders will explore how regulatory clarity and institutional interest will shape the future of digital assets.
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