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.