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Bitcoin is flirting with $32,000 per coin, XRP just posted a 100% intraday rally, and suddenly cryptocurrency prices are in the green again.
This sudden change is part of a potential perfect storm – a change that could lead to a dramatic correction and new all-time highs earlier than most people expected.
“Not a Security” XRP Victory Signals Relief in Crypto
The idea that cryptocurrencies could recover at all in the recent macro environment has been scoffed at throughout 2023. The layer under the influence of the SEC put pressure on the industry by labeling some altcoins as securities, and few people wanted to risk their money on digital coins.
But that label was just removed from XRP, and the price doubled in just one day. XRP has returned some gains since then, but it’s taken a shocking move for people to start paying attention to crypto again – especially altcoins.
The rising tide also lifts all the boats. And with bitcoin holding above $30,000 per coin, Ethereum holding above $1,800, and XRP moves resulting in a “ripple effect” in BTC dominance, altcoins have already started to participate.
The dollar diving could help crypto climb | DXY on TradingView.com
The Perfect Storm for DXY and Bitcoin
So how can this become a perfect storm? The cryptocurrency has been in oversold conditions for a long time, and the order book today is lower than it was in 2021. According to the example of XRP, it will not take much money to start a price movement.
Today alone, hundreds of other altcoins made substantial gains, simply because XRP is no longer labeled a security. This led to an immediate uptick in other altcoins that are at bearish market bottoms and priced significantly higher than their 2021 ATH.
Given the macro scenario mentioned earlier, many traders are short in bitcoin and other coins, and this could soon help push the price higher as they exited positions. Others don’t have a shortage, but have been sidelined and are reluctant to buy. This situation may result in higher prices.
Finally, this perfect storm has subsided with inflation cooling, the stock market approaching its ATH, and the US dollar weakening according to the DXY. The DXY has just lost the 100-point level, potentially sending a risk signal to financial markets.
interesting time for $DXY coinciding with $xrp case outcome
Indeed It Feels Like A Perfect Storm For Crypto Is Upon Us pic.twitter.com/rjfGp9TE4O
— Tony “The Bull” (@tonythebullBTC) 13 July 2023
With all cryptocurrencies priced in the US Dollar as their base trading pair, there is a perfect storm here that could cause prices to continue to move higher.
