Attorney John Deaton has explained why XRP did not hit $1 despite the coin getting regulatory clarity via the SEC v. Ripple lawsuit.
Prominent cryptocurrency advocate and lawyer John Deaton has identified why XRP failed to hit $1, despite the coin getting regulatory clarity via the SEC v. Ripple case.
XRP Failed to Hit $1
Recall that U.S. District Judge Analisa Torres issued the highly-anticipated summary judgment decision in the SEC v. Ripple lawsuit. In the ruling, the judge declared XRP as a non-security.
However, XRP did not record much gains, as many predicted. On Binance, XRP surged to a high of $0.93 on the day of the ruling and has continued to plunge ever since.
In general, data from CoinGecko shows that the coin pumped to around $0.85 a few days after the ruling. Several XRP enthusiasts have expressed disappointment over the coin’s failure to hit $1 despite getting regulatory clarity.
Deaton Spots Reason Why XRP Failed to Reach $1
In a tweet today, Attorney Deaton said many people would not have believed him if he told them that XRP would get regulatory clarity but would not hit $1.
He added that people would have expressed doubt if he also told them that PayPal would launch a dollar-pegged stablecoin on the Ethereum network and ETH would not surge.
The pro-XRP lawyer asserted that Bitcoin, the world’s largest cryptocurrency by market cap, controls the market.
“Like it or not, Bitcoin drives this market, IMO,” said Deaton.
If I had told you #XRP would get regulatory clarity but not hit $1, many wouldn’t have believed it. Likewise, if I had told you PayPal would issue a stable coin on Ethereum but #ETH wouldn’t increase at all, many wouldn’t have believed it. Like it or not, #Bitcoin drives this…
— John E Deaton (@JohnEDeaton1) August 8, 2023
Based on the tweet, Deaton suggests that Bitcoin determines the price movements of other crypto assets. It is worth noting that Bitcoin surged to around $31,500 on the day Judge Torres declared XRP a non-security. However, the top asset class plunged the following day to below $30,200.
XRP Won’t Hit New High Until Bitcoin Does
Meanwhile, the tweet comes days after Deaton revealed that he never believed XRP would hit a new all-time high (ATH) before Bitcoin.
Deaton speculated that XRP will only hit a new ATH when Bitcoin leads a full bull market.
“[…] But until Bitcoin breaks its ATH, I don’t expect anything else to,” Deaton said.
XRP and BTC Trading Below Previous Highs
Per data from CoinGecko, Bitcoin is down 57.45% from its ATH of $69,044. The top crypto asset has been changing hands at around $29,000 in the past few days.
Meanwhile, XRP’s previous all-time high sits at around $3.4. The coin is down 81.67% from its ATH and currently trades at $0.623.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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