The SEC’s Ripple lawsuit led to a sales process that affected not only XRP, but the entire altcoin market. According to veteran Bitcoin and crypto analyst Willy Woo, the news led to a crypto market meltdown that caused altcoins to lose a total of $ 31 billion in market value. The altcoin analysis resulting from Woo’s Ripple case was as follows.
Altcoin market loses $ 31 billion after Ripple lawsuit
The altcoin market has lost nearly $ 31 billion since the SEC sued Ripple Labs. The data obtained means that the crypto volume change per dollar invested is about 1 billion USD real capital flow from altcoins.
Willy Woo stated that as the news about the SEC’s Ripple case spread, the value of ChainLink (LINK) and Cardano (ADA) fell with the value of XRP. Woo’s Chainlink and Cardano analysis can be found in the following two-part Twitter header, which highlights a significant increase in Bitcoin’s dominance due to the lawsuit.
There is an exit from altcoins, money flows into BTC
As can be seen from Willy Woo’s tweet above, the decline of the XRP market from $ 0.57 to $ 0.25 pulled many altcoins down, causing investors to transfer their capital to the safe haven asset they know, Bitcoin.
Currently, Bitcoin dominance stands at 69.50, according to Tradingview. Such a high dominance of Bitcoin in the crypto markets was last seen between August 2019 and January 2020, when BTC corrected at its 2019 peak value of $ 14,000.
Currently, the flow of capital from altcoins to Bitcoin could indicate a level of fear by investors that other digital assets will be declared securities by the SEC. Chainlink, which is constantly being examined by the team at Zeus Capital, accusing the project of being steam software, is an important example at this point. According to Zeus, Chainlink’s founders will soon face a similar fate with Ripple and its two managers.
