Various media outlets report the opinion that SEC Chairman Gary Gensler expressed in a personal conversation. He allegedly intends to approve applications for the creation of ETFs related to the cryptocurrency spot markets. Such applications were submitted by BlackRock, Invesco, WisdomTree, Valkyrie and other respectable funds. But for now, the SEC’s decision on the applications has been delayed.
At the same time, it is reported that by giving the go-ahead to applications, Gary Gensler can thereby gain loyalty from the funds, and after the end of his period as head of the SEC, go to work for one of them.
Against the backdrop of the information mentioned, the crypto markets perked up — the prices of bitcoin, Ether and other assets rose by approximately 3% in a few hours. However, it is unlikely that such rumors can become a driver for creating a sustainable trend.
Pay attention to the XRP/USD chart. After the court ruling in favour of Ripple Labs in a dispute with the SEC, the price of the XRP token soared to 0.9. However, when the strong positive emotions dissipated, the price of the token again returned to the area from which it took off. At the same time, at the moment the price even dropped below that area, piercing the level of 0.45 (constituting about 50% of the price recorded at the peak of growth), which probably led to the activation of a large number of stop losses set under the wide bullish candle.
This course of events indicates that, under the influence of faith, hope and news, the price of an exchange asset can make significant deviations from its fair intrinsic value. But when the momentum fades, the pendulum will swing in the opposite direction, which is quite clearly evident in the cryptocurrency markets.
Regarding XRP/USD, the price of the token may continue its consolidation movement within the triangle shown in green. Perhaps the half-dollar level for XRP is close to the current fair value of the asset.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
