Crypto Inches Upwards Again as Ripple Ruling Lifts Mood

Major cryptocurrencies experienced an uptick on Thursday following a legal ruling against Ripple Labs Inc., which was fined $125 million. Despite this, Ripple described the outcome as a win against the U.S. Securities and Exchange Commission. Bitcoin surged by as much as 4.5%, reaching over $57,600, while Ethereum also rose nearly 5%. However, both cryptocurrencies are trading below their prices from a week earlier, following a sharp decline on Monday, marking the biggest drop since the FTX collapse in 2022.

This decrease occurred amid a broader sell-off in global stocks, exacerbated by economic uncertainties, escalating tensions in the Middle East, and skepticism around the profitability of large investments in artificial intelligence.

According to Benjamin Celermajer, co-chief investment officer at Magnet Capital, the market remains on edge following the events earlier in the week. He suggests that if the concerns turn out to be overblown, the market might rebound from what is perceived as an overreaction. Cryptocurrencies initially recouped some losses on Tuesday, but the rally was short-lived. By Thursday morning in Singapore, Bitcoin and Ethereum were trading at $57,449 and $2,457, respectively.

On Wednesday, a federal judge ruled that Ripple must pay a civil penalty of $125 million, significantly less than the nearly $2 billion sought by the SEC. The SEC had accused Ripple in 2020 of illegally raising funds through the sale of its XRP token without registering it as a security. Following the decision, the price of XRP surged by as much as 25%.

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