For the last few weeks, the ongoing Ripple vs SEC lawsuit has taken a back seat as the rest of the crypto community is focused on the developments in the FTX fiasco. However, unbeknownst to many, the outcome of the Ripple vs SEC lawsuit could impact the potential recovery of Bitcoin and crypto markets that have been continually bombarded by the collapses of UST, LUNA and now the FTX crypto exchange.
Ripple Losing to the SEC Could Add Selling Pressure on Bitcoin and Crypto
Rumours of the Ripple vs SEC lawsuit coming to a conclusion have already started to circulate, with Cardano’s Charles Hoskinson quoted as believing that a settlement could be reached by tomorrow, December 15th.
At the same time, the team at VanEck Digital Asset Research are of the opinion that Ripple losing the lawsuit could exert additional selling pressure on an already weakened Bitcoin and crypto markets. They said:
Ripple losing its SEC lawsuit (possible in Q1, more on this below) may coincide with this final downdraft, which would take out nearly the entirety of the post-2020 halving bull market.
Bitcoin to Dip to $10k – $12k in Q1 2023 then Rise to $30k – VanEck
In addition, the team at VanEck forecasted that Bitcoin could drop to as low as $10k in the first quarter of 2023 due to miner bankruptcies which will mark the low point of the crypto winter. They explained:
With Bitcoin mining largely unprofitable given recent higher electricity prices and lower Bitcoin prices, we predict that many miners will restructure or merge.
However, after the dip, Bitcoin could rise to $30k due to lessening inflation, lower energy anxiety and some possible truce in the war in Ukraine.
© Solana Daily Brief, Inc. All Rights Reserved. This article is for informational purposes only. It is not to be used as legal, tax, investment, financial, or other advice.Bitcoin and the broader crypto ecosystem have suffered through a brutal bear market in 2022…An end to the war in Ukraine would likely reverse at least some of these policies and make Bitcoin mining more politically palatable.
…the Federal Reserve would likely pause raising rates amidst softening inflation, while money printing and government budget deficits continue. Merely a lack of bad crypto-specific news, under the above scenario, could cause the price of Bitcoin to climb a wall of worry back to $30K again