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Ripple’s XRP is certainly among the most well-known cryptocurrencies, boasting a robust community of dedicated supporters and millions of holders.
This coin is one of the pioneers in the sector and has consistently ranked within the top 10 largest cryptocurrencies by total market capitalization for several years. However, in December 2020, the United States Securities and Exchange Commission initiated a lawsuit against Ripple, asserting that XRP qualifies as a security and, consequently, alleging that the company engaged in an unregistered securities offering.
The repercussions were severe, and the coin did not benefit significantly from the bull market in 2021, during which Bitcoin approached an all-time high near $70K.
That said, many are curious about when the XRP bull run might commence. This prompted us to consult the artificial intelligence of ChatGPT – the leading AI chatbot globally. Let’s explore its insights.
The Ripple v. SEC Case Is Significant
One of the key elements that ChatGPT identified as essential for the possible onset of a new XRP bull run is regulation.
Regulatory changes can yield both positive and negative effects. Clear and favorable regulations can enhance investor confidence.
In the context of a bull run specific to XRP, it is reasonable to assume that the ongoing case between Ripple and the US SEC will likely play a pivotal role.
A favorable verdict could potentially propel XRP’s price upward – and we have already observed indications of this. In July, the presiding judge – Analisa Torres – determined that secondary sales of XRP do not qualify as an investment contract. This implies that in this particular context, XRP does not meet the definition of a security, according to the court.
However, this was merely a partial victory, and the SEC is appealing the decision, but the market surged on the same day the ruling was announced. XRP’s price nearly doubled within a single day.
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Furthermore, many exchanges that had previously removed the cryptocurrency from trading reinstated it.
For more information, you can view our brief video here:
Here’s the Caveat
While a favorable outcome against the SEC may positively influence XRP’s price, it is not the sole factor that could instigate a bull run, as noted by ChatGPT.
Other factors to consider include:
- Market Sentiment
- Adoption and Use Cases
- Market Liquidity and Trends
- Market Timing
The last point is particularly noteworthy. Generally, altcoin bull runs tend to align with Bitcoin’s significant price movements, and what’s just ahead?
Indeed – one of the most optimistic events in cryptocurrency history – the Bitcoin halving. This event has consistently served as a catalyst for bullish market cycles, so it remains to be seen if this instance will follow suit. It is projected to occur in late Q1 or early Q2 of 2024.
Nonetheless, the global economy can also exert influence, and that is the caveat. If traditional finance continues to deteriorate, it is uncertain whether cryptocurrencies will be able to decouple.
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