In this article we are going to see about see about XRP Ripple: China’s Bitcoin BAN Puts Traders In The ‘FEAR’ Zone! The END Of Bitcoin!
Hi fans and welcome. A little physics to start off today’s article. Newton’s 3rd law of Physics says, For every action there is an equal and opposite reaction. That law has applied this week across the crypto currency market! XRP’s price dropped over the last 24 hours. This time, most of the drop can be a reaction to the announcement by the Bank of China’s announcement early Friday. XRP is down 5.59% over the last 24 hours. We will break down the trends and technical data coming up and take a look at the latest from across the world of crypto, It has been an eventful week in the world of crypto currency and the investment markets across the board. It began with the all the markets falling due to the threat of default by a Chinese Realty Company. Yesterday, it was again China and their announcement that crypto currencies, Bitcoin, Ethereum and Tether in particular, were illegal.
The announcement was a formality, but the Chinese government had made the same policy insinuation before. As a reaction, Bitcoin, the world’s current top crypto, fell by 6%. Ethereum fell by 7% and XRP dropped by 6%. According to Reuters, The Chinese government said in a statement it would "resolutely clamp down on virtual currency speculation, and related financial activities and misbehavior in order to safeguard people's properties and maintain economic, and social order.” China and other countries are working to create their own CBDC, that is Central Bank Digital Currency and the People’s Bank of China is reportedly trying to develop a digital Yuan. The crack down led to other bearish trends in the drop of Litecoin, Dogecoin, Bitcoin Cash, Stellar and other digital currencies all showed declines for the day. So with all the confusion, the ups and downs this week and Friday’s drop after the announcement from China, what are XRP fans saying on social media? Our first comment is from XRP HODL DYOR and he tweets, September 24, 2021 CHINA BANS ALL OF CRYPTO (Bitcoin 8.67% decline) And now here’s a tweet about the ban and its impact on Bitcoin. It comes to us from Carlos R2D2 which says, They banned mining and other activities related to crypto in the past, this new ban is for every activity related to buy or sell crypto. Any financial transaction with that intent is now illegal in China. And now here’s this from BitRSS News, which says, All bark and some bite. China’s Bitcoin ban puts traders in the ‘fear’ zone Bitcoin derivatives markets flipped neutral-to-bearish after China’s ‘crypto ban’ announcement triggered a BTC price dip to $40,600.
Now here’s a look at the price action for BTC as prepared by Trading View which shows the dramatic swing for the crypto after the announcement about the ban. Cointelegraph.com featured the charts within an article calling China’s move “All bark and some bite”. It gave an overview of the reaction by Bitcoin traders to the announcement from the People’s Bank of China on Friday. One particular point they make is really a positive for the bulls and long term holders. “Despite the $4,000 negative price swing, aggregate liquidations on leveraged long futures contracts were less than $120 million. This data should be highly worrisome for bears because it signals that bulls are not overconfident and that they are not using extreme leverage.” Now here’s some other details provided by the site Blockchainnews.com, “Before China’s announcement, most cryptocurrencies were indicating good signs of recovery after the Monday crash, which wiped almost $200 million from the cryptocurrency market.” Their story details Monday’s global market plunge that included crypto, after the debt issue for the Chinese real estate company, Evergrande.
Though most markets had regained some of their losses. The announcement and intended enforcement from the People’s Republic caused another loss for crypto. The article talks about policies previously announced by China and their impacts on the crypto community but also the possibilities of the future remain. They asked a digital asset hedge fund manager from ARK36, Ulrik Lykke his thoughts about the current situation, “Lykke further stated that investors should be careful not to make emotional decisions based on this trending news story. On-chain fundamentals still indicate that bull market continuation in Q4 is likely. Meanwhile, Katie Stockton, the founder and managing director of Fairlead Strategies, also recently said that Bitcoin’s uptrend remains intact over the long term. “The long-term uptrend still has a hold on bitcoin, with our monthly indicators pointing higher, putting short-term volatility into a bullish context,” Stockton said. As mentioned in the article above from the experts, “be careful not to make emotional decisions…”. I say it quite often, trade safely, do your own research and don’t ever panic buy! I’d like to know what you think. In the comment section below please share your thoughts on the state of crypto. The Chinese ban and what it means to the future of crypto currencies.
I think other viewers will be interested to hear from you as well. Moving on, let’s talk SEC vs Ripple suit. It’s been in the news for 9 months and 3 days and has dominated reports about Ripple and XRP ever since. On Friday, Ripple CEO Brad Garlinghouse was interviewed on Fox and stated that with certain conditions, they would be willing to settle with the SEC. He said, “to the extent we can find a constructive path forward with the SEC, we, of course, want to find that. There is no scenario though when gonna to settle unless there is absolute certainty about what is XRP on the go-forward basis. We have a clear vision of how XRP can be an extremely powerful tool...There's a lot of other people in the crypto community and the XRP community doing amazing things with XRP.” The CEO seemed to indicate that a settlement could be a possibility if there is "absolute certainty" about XRP. Some believe the SEC is trying to regulate XRP by this court case. The Chinese are trying to regulate crypto by banning it and now we have this from Europe, where it appears Switzerland appears to be instituting regulations on the use of digital currencies.
The story comes from FINEWS and is titled, Switzerland to Impose Anti-Money Laundering Rules on Crypto Providers. Some of the questions about crypto investments are the fear of scams and corruption potentially in the system. That’s where the need for regulation and security are paramount. The article explains that, “Switzerland’s financial regulator – the Swiss Financial Market Supervisory Authority or simply FINMA – would closely supervise local crypto providers as an attempt to clamp down on money-laundering transactions. Swiss platforms and brokers dealing with digital assets would have to enhance their monitoring efforts and observe if bad actors employ cryptocurrencies. The Bern-based watchdog believes the initiative is “urgently necessary,” stressing that criminals use the asset class even to fund terrorism acts. FINMA also turned its attention towards bitcoin automated teller machines. According to the regulator, drug dealers frequently use such ATMs as payment systems. It is worth noting that Switzerland is a relatively small nation, but its 130 Bitcoin automated teller machines place it in the sixth position among the countries with the most stations. FINMA also passed an anti-money laundering provision according to which it lowered the threshold for unidentified crypto purchases from 5,000 Swiss Francs (CHF) to 1,000 CHF (around $1,080). Or, in other words, all financial providers dealing with digital assets have to collect data on anyone initiating transactions that exceed this amount.” So, as I’ve said before, regulations are coming, it’s just a matter of time. I sincerely believe that clairity will come from regulation and that will also bring stability to crypto exchanges and when that happens the number of investors will also increase.
Add that to a settlement of the litigation between the SEC and Ripple and we will see the price of XRP climb to new heights. Back to today, however, we need to take time and look at exactly where XRP sits. Here you are, the technicals… RippleX, Ripple's developer arm, has announced the first round of XRPL awards to help fund the company's growth. The award will provide funding to developers working on XRP-based projects. The creation of non-fungible tokens was the focus of the most recent awards. RippleX selected 25 candidates from ten countries and granted them $2 million, according to a release. The San Francisco-based payments company Ripple says its technology will power a central bank digital currency (CBDC) pilot project in Bhutan. The nation’s Royal Monastery Authority (RMA) is collaborating with the crypto firm to roll out its very own CBDC as a way of improving the efficiency of cross-nation payments and increasing financial inclusivity, according to a post on Ripple’s website. Technically, for Ripple we give a higher probability for the price to go higher. The price touched the support zone multiple times and for now we see it going higher at least for a bigger correction in this area if not for a total upside. Potential areas to watch for continuation or reversal are the $1.02 and $1.12. Exciting times my friends! Remember opinions expressed here are for entertainment purposes only.
I am not a licensed financial advisor.
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