Crypto Briefing 8/2/22 - The Forecast

Crypto Briefing 8/2/22

Crypto Briefing 8/2/22

Bitcoin and the stock market are still showing weakness.  BTC continues to struggle to break past $24,000. Over the next few weeks, we expect to see stocks and Bitcoin break down one last time before a strong move into year-end.

Regulators around the world, but primarily in the U.S, are becoming openly hostile to the crypto market. For instance, today New York regulators levied a $30 million dollar fine on Robinhood’s crypto division. The fine comes as a result of Robinhood failing to keep a record of customer complaints, and for not having a sufficient system to monitor transactions.

As digital assets begin to mature, governments and regulators will begin to take a more proactive approach into regulating crypto. The issue of compliance will ultimately be what makes or breaks many crypto companies, as the current environment in the United States is not friendly to innovation.

When we look at the weekly XRP price chart, we can see that it is poised for a strong move into 2023. Even in spite of crypto being in a bear market, Ripple has continued to expand as a company. For instance, Ripple’s On-Demand Liquidity service, which uses XRP for cross border transactions, has increased 9x since the start of 2022.  Even though altcoins such as Quant, Cardano, and XDC saw larger moves to the upside in 2020 and 2021, XRP has remained a laggard. Depending on the headlines that are attributed to XRP over the next few months, it is possible for us to see some explosive price action. Specifically, if new partnerships are announced or we see a resolution to the Ripple SEC lawsuit, XRP should experience its own bull run.