[Bitcoin Now] Returns 'Ripple Effect' to $30,000 Range... Investor Sentiment Remains 'Greedy'

The price of Bitcoin, which had been rising after a U.S. court sided with Ripple Labs, the issuer of the virtual asset Ripple, in the securities controversy, has given back its gains.

Image source=Reuters·Yonhap News

According to the global virtual asset market tracking site CoinMarketCap as of 2:29 PM on the 16th, the price of Bitcoin was recorded at $30,227 (approximately 38.48 million KRW), down 0.18% from the previous day.

Bitcoin prices had shown strength after Ripple Labs won the securities controversy. Earlier, on the 13th (local time), Judge Analisa Torres of the U.S. District Court for the Southern District of New York ruled in the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple Labs, which claimed Ripple was an unregistered security, stating that "Ripple Labs did not violate federal securities laws by selling (Ripple) to general investors on exchanges." However, the court found that selling Ripple to institutional investors such as hedge funds violated federal securities laws.

In December 2020, the SEC sued Ripple Labs, alleging that Ripple was issued in violation of securities laws. With strong opposing claims from both the SEC and Ripple Labs, the market found it difficult to predict who would win.

With Ripple Labs' victory in the lawsuit that had been ongoing for over two years, Bitcoin prices rose to the $31,700 range. Ripple's price also increased from $0.47 to $0.87. This was because the U.S. Commodity Futures Trading Commission (CFTC), which has relatively lighter regulations than the SEC, is more likely to oversee most virtual assets. However, as the positive momentum for Ripple did not continue, virtual asset prices declined. Ripple is currently trading around $0.71. There is also speculation in the market that the SEC may appeal the court ruling.

Investor sentiment in virtual assets remained at a greed level. According to Alternative, a virtual asset data provider, the Fear & Greed Index, which measures investor sentiment, rose by 1 point from the previous day to 57 points (greed). Compared to 55 points (greed) a week ago, it increased by 3 points. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.