Altcoin Market Cap Drops by $31B Due to the SEC Suing Ripple
Fast take:
News of the SEC suing Ripple brought about the altcoin market cap to drop by $31 BillionChainlink (LINK) and Cardano (ADA) had been most affected amongst the top coinsBitcoin dominance is knocking at 70% because of the sell-off as a result of the Ripple lawsuitInvestors transferring capital from alts and into Bitcoin could be an indication of concern that different crypto tasks might be sued by the SEC
News of the SEC suing Ripple led to a market selloff that not only affected XRP but the whole altcoin market. in keeping with veteran Bitcoin and Crypto analyst, Willy Woo, the inside track sparked a crypto marketplace meltdown that led to altcoins shedding a mixed $31 Billion in market capitalization. Mr. Woo’s research of altcoins due to the Ripple lawsuit used to be as follows.
Alt-coin cap down approx $31b due to the fact SEC’s motion to sue Ripple Labs, that is round $1b USD of real capital flows out of alt-cash the use of FundStrat estimations of crypto cap amendment according to buck invested.
Cardano and ChainLink Most Correlated to XRP
Willy Woo went directly to indicate that the price of ChainLink (LINK) and Cardano (ADA) dropped in tandem with that of XRP as news unfold concerning the Ripple lawsuit by the SEC. Mr. Woo’s research of Chainlink and Cardano can be present in the following -section Twitter thread that still highlights an important increment of Bitcoin’s dominance because of the lawsuit.
Chainlink and Cardano most intently correlated to XRP. pic.twitter.com/7AKbJBw6VP
— Willy Woo (@woonomic) December 23, 2020
Bitcoin Dominance is Knocking on 70%
As can be noticed from the tweet above through Willy Woo, the XRP marketplace promote-off from $0.57 to $0.25 dragged down many altcoins therefore resulting in buyers moving their capital to the secure-haven asset they recognize: Bitcoin.
At the time of writing, the Bitcoin dominance in line with Tradingview stands at 69.50. one of these top dominance of Bitcoin within the crypto markets used to be ultimate witnessed among August 2019 and January 2020 whilst BTC was correcting from its 2019 peak worth of $14k.
In the current scenario, the flight of capital out of altcoins and into Bitcoin may point out a level of fear by way of traders that other virtual belongings can be declared as securities through the SEC. One instance is Chainlink that has frequently been scrutinized via the staff at Zeus Capital who accuse the project of being vaporware. in keeping with Zeus, the founders of Chainlink will quickly face a similar destiny as Ripple and its two executives.