Bitcoin (BTC) upward charge is cooling down with the digital asset’s price falling below $26,000 on Dec. 29. The leading cryptocurrency failed to sustain its forward momentum after hitting a new All-Time High (ATH) of $28,400 over the weekend.
The bull run has been cut short as a result of fresh concerns in the cryptocurrency space following the threat of a Ripple lawsuit by the United States Security and Exchange Commission.
Cryptocurrency market data show that BTC/USD fell to a low of around $25,800 on Tuesday after an intense run that climaxed this past weekend. The drop, that was thought to be temporary defied some market predictions after falling below the $27,000 support level. This set the stage for the digital asset to test lower levels in the region of $26,000 as the market reacted to the news of potential litigation.
Ripple’s XRP cryptocurrency endured a substantial price decline reaching a low of $0.23 prompting some leading exchanges to suspend trading of the fourth-largest digital asset by market cap. Top US crypto exchange announced that it will suspend XRP trading in the coming month thus sending a signal to the market. The lawsuit by SEC against Ripple seeks to classify XRP as an unlicensed security which would effectively render trading the cryptocurrency illegal.
Some major altcoins have recorded positive market action in the midst of the XRP storm, prompting analyst to predict potential bull runs. The second largest cryptocurrency and leading altcoin by market cap, ETH was on the front foot rising past the $700 mark for the first time since May 2018.
Polkadot (DOT) was the breakthrough altcoin, with the seventh-largest cryptocurrency by market cap rising by more than 22% on a single day. The sharp rise brought Polkadot remarkable rise to a cumulative 34% weekly rise. The rally was complemented by upward price surges for various cryptocurrencies indicating that the altseason is potentially in play. This will come as a huge reprieve for crypto investors with a diversified portfolio that have watched Bitcoin soar whilst altcoins remained relatively unmoved.
The recent bull run and quick reversal have been touted by industry insiders as an impulse wave that is going to set the stage for a massive bullish trend in 2021. Bitcoin is expected to lead this charge and potentially hit $40,000 to $50,000 levels.
Image courtesy of pixabay
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