Crypto Roundup, December 28, 2020: Crypto market swings higher in triumphant Santa rally
Bitcoin feels the festive cheer as XRP shrinks from SEC lawsuit
Tensions have flared in the cryptocurrency market this Christmas, with Bitcoin making new all-time highs after Ripple’s XRP suffered the impact of an impending lawsuit.
Santa delivered a series of fresh highs for the dominant cryptocurrency, which hit $25K on the 25th as festivities began, then shot up to $26K on the 26th, and finally passed $27K to hit $28K on the 27th before cooling off. In total, Bitcoin gained 17% over the week.
Yet not all of the crypto market has been so lucky. While Litecoin ate Bitcoin’s Christmas lunch with 22% gains, Ethereum has risen slightly less at 15%, and XRP sank 45% after the Securities and Exchange Commission (SEC) filed charges against Ripple Labs.
This Week’s Highlights
- Bitcoin pulls away from the pack
- Ripple caught in regulator crosshairs
Bitcoin pulls away from the pack
Bitcoin’s new status as the hottest institutional investment is reflected in Bitcoin Dominance, which has risen to over 70% as altcoins have fallen behind in the Santa rally.
This metric, which shows Bitcoin’s share of the crypto market, reflects a year of massive growth for the leading cryptocurrency. The price of Bitcoin is now up 240% since the start of 2020, and 520% since the March low. In total, the market cap now exceeds $500 billion — bigger than Visa, JPMorgan, and PayPal.
Little brother Ethereum however, has risen even more. The second-largest cryptocurrency has rallied 440% since January 1st, and over 700% since the March low.
Ripple caught in regulator crosshairs
While other coins were celebrating the festivities, XRP was struck by a lawsuit from the SEC.
Just a few days before Christmas, the US regulator charged Ripple and two executives with failing to follow securities laws, alleging that the sale of XRP was effectively a $1.3 billion unregistered securities offering.
This caused the price to plummet as some exchanges rushed to delist the token, but the saga is far from over. Although the Ripple community has taken a hit, they are now preparing for war, led by Ripple Labs CEO Brad Garlinghouse who tweeted: “we are ready to fight and win.”
The week ahead
As 2020 draws to a close, traders are now eyeing the psychological $30K Bitcoin level for the first time.
Whether the dominant crypto can tackle this key milestone before the end of year however, remains to be seen. Monday brings the end of the holiday weekend, and the arrival of institutional buyers, which could change the character of the market and dictate a change of direction.
Further ahead, the outlook for 2021 is rosy as Bitcoin enjoys increasingly mainstream appeal, and continues to be supported by more plans for economic stimulus.
Crypto Roundup, December 28, 2020: Crypto market swings higher in triumphant Santa rally from eToro.