The crypto market was eventful this week, with different ups and downs putting investors on the edge while BTC, ETH, SOL, AVAX, and other altcoins were all battling price swings. The new developments in Ripple and Telegram lawsuits also increased the crypto market shake-up in price. As we dive deeper, we will show you everything you need to know about the current condition of the crypto market and their cause.
Crypto Market Experience High Volatility
The Crypto market went through an uneven week as news about BTC, ETH, SOL, and other altcoins made headlines. The ups and downs in the crypto space are the result of the activities in the overall financial world.
According to the latest release by the U.S. Labour Job Opening and Labour Turnover Summary (JOLTS), which shows the number of available jobs in the U.S., America has 7.7 million job openings which is down by 4.6% from the initial 8.1 million forecasts. Data like this tend to signal a struggling economy, which can lead to a recession.
Immediately after the JOLTS release, BTC fell by 3% to $56,356, and its trading volume went up to $32.32 billion, a 27% increase. ETH went down to $2,394 – a 2.4% decrease in price. Most other altcoins went down more in price as they tend to mirror BTC’s price movement.
What to Expect From The Fed’s Rate Cut
All eyes are on the Federal Open Market Committee (FOMC), a government body that controls the raising and cutting of interest rates. Based on the prediction from Citi Analysts, the U.S. Fed is likely to cut the interest rate by 50 bps this September. This could trigger a crypto bull run as the 50 bps rate cut would create a buy market sentiment in the crypto space.
However, If the Fed issues a low interest rate cut, investors might see it as a sign of recession. In the finance space, people often interpret low interest rates as a sign of a weak economy going towards recession. This can make them start selling their highly risky investments like cryptocurrency to keep their money safe.
Historically, people in the finance world see September as a tough month for crypto and the stock market. And with this current market condition, data from JOLTS, and the upcoming FOMC meeting, this September might also be like other poor ones for crypto.
Ripples’ Court Case Continues
Ripple has been a long-running court case with the U.S. Security and Exchange Commission (SEC) since 2020. The SEC accused Ripple of selling the XRP token as an unregistered security to U.S. citizens. This week, Judge Analisa Torres, Ripple, and the U.S. SEC agreed on a stay order. That means Ripple’s $125 million civil penalty payments will be halted pending an appeal from either party.
Ripple’s Strategic Moves
While market participants continue to speculate about the impact of the Ripple vs SEC lawsuit on the XRP price, the blockchain giant Ripple has begun making strategic moves to restore investors’ trust in the project in recent times.
A notable one is the recent Kamala Harris endorsement by Chris Larsen, Ripples’ executive chairman. He was among the eighty-eight U.S. corporate leaders to pick Kamala as their presidential candidate in the upcoming U.S. election.
Moreover, Ripple’s CEO, Brad Garlinghouse, made another important move for the company. He recently announced the launch of Ripple’s stablecoin, RLUSD. A stablecoin is a cryptocurrency created to have a stable value like the U.S. Dollar. Most importantly, stablecoin is pegged to fiat currency like the dollar, and it serves the same purpose as the dollar in the crypto world.
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Telegram Legal Troubles Continue
Within one week, Telegram (one of the top social messaging platforms in the world with millions of users worldwide) found itself in major legal issues. Pavel Durov, the platform CEO, was faced with a legal battle in France.
At the same time, South Korea started an investigation into the platform, with claims that some people are using Telegram for illegal activities. The impact of the attack on Telegram led to the platform changing its policies in a bid to crack down on perpetrators.
Telegram is a widely used platform for crypto activities due to its crypto-friendly policies. With the new policies, people are watching how they will affect millions of crypto users on the Platform.
How Do These Events Affect the Crypto Market?
As the U.S. JOLTS release wasn’t up to expectations, coupled with the ongoing Telegram and Ripple legal issues this week, it is not surprising that the crypto market remains very volatile. With the current shaky economic situation, it becomes more difficult to predict the next direction of the crypto market.
However, there are more than enough events for crypto investors to keep track of, as people are anticipating a more stable crypto market. It is very important to stay current on crypto events and DYOR before investing in any crypto project.
The post Crypto Market This Week: Legal Battles, Wild Price Swings, and Big Market Shifts appeared first on Coinfomania.
