Altcoins Surge as Bitcoin Price Drops Below 50% Amid SEC’s Verdict

Introduction:

In a recent development, the dominance of Bitcoin in the crypto market has experienced a decline, briefly slipping below the 50% mark. This drop can be attributed to the United States Securities and Exchange Commission’s (SEC) labeling of certain altcoins as securities. As a result, altcoins witnessed significant gains, fueling speculation about the return of an “altcoin season.” This article explores the implications of Bitcoin’s declining dominance, the surge in altcoin prices, and the potential sustainability of this trend.

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Key Takeaways:

• Bitcoin dominance fell below 50% following Ripple’s partial victory against the SEC, which boosted the prices of various altcoins.
• Altcoins like XRP, Ethereum, Cardano, Solana, Polygon, and Stellar Lumens experienced double-digit gains in response to the news.
• Although remarkable, the altcoin rally raises questions about its long-term sustainability, as the crypto market remains range-bound.
• Bitcoin’s dominance has since slightly recovered, hovering above the 50% mark, while altcoins continue to show resilience and outperform Bitcoin.

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Altcoin Surge Propelled by Ripple’s Triumph:

Ripple’s recent legal win against the SEC profoundly impacted the crypto market. XRP, Ripple’s native token, skyrocketed by an impressive 83%, reaching an intraday high of $0.866. This surge allowed XRP to briefly become the fourth-largest crypto by market capitalization before settling in the fifth position, just below Binance Coin (BNB). The crypto community enthusiastically celebrated Ripple’s victory, and it sparked further interest in altcoins.

Additional Read: Crypto Market Soars as XRP Wins, BTC Price Surges to $31,000

Double-Digit Gains for Securities-Labelled Altcoins:

Several altcoins that have also been classified as securities by the SEC witnessed substantial gains on July 14. Ethereum, the second-largest crypto, surpassed $2,000 for the first time in three months, recording an 8% increase. Cardano experienced a remarkable surge of 25%, reaching $0.357 at the time of writing. Solana, another token deemed a security, soared by 34%, reaching $29. Similarly, Polygon witnessed a 20% surge, trading at $0.854. Stellar Lumens, a payment network derived from Ripple’s codebase, also saw significant growth, surpassing 50% in gains.

XRP declared not a security.

Bitcoin dominance: pic.twitter.com/veZDJTHQlu

— Will Clemente (@WClementeIII) July 13, 2023

Sustainability of the Altcoin Rally:

While the surge in altcoin prices indicates a shift in market sentiment, it remains uncertain whether this altcoin rally can be sustained. Despite the short-term gains, the overall crypto market remains range-bound. Bitcoin’s dominance, which has reclaimed above 50%, hovers slightly above its 50-day moving average. Although Bitcoin experienced a modest 3.5% daily gain, it was outperformed by various altcoins.

Conclusion:

The decline in Bitcoin dominance below 50% following Ripple’s favorable legal outcome has propelled altcoins to significant gains. This surge in altcoin prices highlights the potential for an “altcoin season” in the crypto market. However, the long-term sustainability of this trend is uncertain, as the market still faces range-bound conditions. While Bitcoin’s dominance has partially recovered, altcoins continue to exhibit resilience and outperform the pioneer crypto.

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