Here's why Bitcoin (BTC), XRP and the crypto market are dropping!

The parent cryptocurrency dropped by over 3% in one day. It dropped below the psychological $30,000 mark on Sunday night. This drop in price has caused the crypto market to plunge, particularly that of Ether and XRP. What could explain this trend? Is the market currently in the red? BFM Crypto explains.

Selling pressure on the crypto market

The Bitcoin (BTC) price is down 3% today, reaching $29,000. On Sunday night, it dropped below the symbolic $30,000 mark, and could even post a 5% correction. Market dynamics during the summer months tend towards volatility, with lower trade flows. However, the market’s most important cryptos have been remarkably calm of late, says a market note from platform eToro.

According to BFM crypto, the fall of the leading cryptocurrency could be linked to selling pressure on the market. In fact, the fall accelerated at Asian market time, more specifically in China, according to one analyst. What’s more, traditional markets are also falling, and investor confidence is worsening, he adds. In addition to bitcoin (BTC), ether (ETH) also saw a 3% drop in its price. The Ripple token, XRP, also dropped by 6% in one day.

A wrongly decided case, according to the SEC

As a reminder, an American court ruling in favor of Ripple had sent the XRP token soaring by over 70% on July 13. Indeed, US judge Analisa Torres ruled on the qualification of XRP. In response, the crypto sector welcomed Ripple’s victory over the SEC.

However, it should be noted that XRP has been qualified as a security for institutional investors. The asset thus falls under SEC regulation. In a document, the US regulator indicated that it could appeal the US judge’s decision. The SEC said the case was “wrongly decided”, stating that much of the judge’s decision supports the SEC’s assertions in the case.