Altcoins experienced a remarkable surge in value following Ripple’s recent legal victory against the SEC. This rally, however, had unintended consequences as bears and short speculators incurred substantial losses, amounting to a staggering $273 million.
$273M Liquidations Amid Altcoin Surge and Ripple’s Legal Win
The crypto market has witnessed a surge in liquidations, amounting to nearly $273 million within the past 24 hours. Eventually, the majority of these liquidations, approximately $215 million, were short positions and over 80,000 traders were affected as reported by Coinglass.
Notably, the largest liquidations occurred in Bitcoin (BTC), Ripple (XRP), and Solana (SOL) short positions. During this time, altcoins have experienced substantial gains, as Ripple was partially successful in its legal fight against the SEC.
The US District Judge Analisa Torres ruled that Ripple did not violate federal securities laws when selling XRP on crypto exchanges. This declaration dealt a blow to Gary Gensler and the SEC, as XRP was legally declared not a security for secondary transactions.
Ripple’s victory had an immediate impact, propelling XRP prices by more than 80%. However, it’s important to note that despite this surge, XRP is still down over 76% from its all-time high in 2018.
SEC-targeted cryptocurrencies continue to demonstrate strong performance during the Asian trading session on Friday. Ethereum (ETH) surged by 8%, surpassing the significant psychological threshold of $2,000, a level not seen in three months. Meanwhile, Bitcoin (BTC) experienced a more modest gain of 3.5%, reclaiming the resistance zone at slightly above $31,000.
SEC-Targeted Coins Show Resilience, as Cardano and Solana Outperform Amid Market Volatility
Other cryptocurrencies targeted by the SEC as alleged securities have also shown positive performance. Ethereum (ETH) surpassed the psychological barrier of $2,000, experiencing an 8% increase, while Bitcoin (BTC) saw a more modest 3.5% gain, reaching just over $31,400.
Altcoins like Cardano (ADA), also considered a security by regulators, surged by 27% to $0.365, reaching levels not seen since late April. Solana (SOL) recorded a 34% increase, briefly touching $29 before a slight retreat.
As the crypto market experiences unprecedented volatility, the aftermath of the altcoin rally and the resulting liquidations serves as a stark reminder of the risks involved. Traders and investors must carefully navigate the market, armed with knowledge and risk management strategies, to ensure long-term success in this rapidly changing landscape.
