Bitcoin, Ether stable, XRP leads crypto gains

XRP led the winners, despite the U.S. SEC moving to challenge a June court ruling in favour of Ripple Labs

Bitcoin rose slightly on Monday morning to trade marginally above the $26,000 support level, after dropping more than 10 per cent for the week. Ether also edged up but stayed below $1,700 after last week’s losses. Other top crypto currencies traded mixed. XRP led the winners, despite the U.S. Securities and Exchange Commission (SEC) moving to challenge a June court ruling in favour of Ripple Labs.

Bitcoin rose 0.28 per cent during the past 24 hours to $26,178.36, logging a weekly loss of 10.68 per cent, as per CoinMarketCap data. The token reached a two-month low of $25,409.11 on Friday, but held above the $26,000 support level over the weekend.

A cool-off of Bitcoin ETF hype in the U.S. could be behind the Bitcoin drop, according to James Butterfill, head of research at CoinShares.

The surge in June, driven by BlackRock’s application for SEC approval of a Bitcoin exchange-traded fund, led to a significant spike in prices, said Butterfill in a report released Friday.

Nevertheless, markets are now coming to terms with the realization that an immediate SEC approval for a Bitcoin exchange-traded fund in the U.S. is not likely. It is noteworthy that current Bitcoin prices have stabilized around levels seen before this announcement, he said.

The low volume and volatility in Bitcoin, an increase in U.S. treasury yields, as well as concerns over China’s economy contributed to Bitcoin’s sharp weekly drop, the CoinShares report found.

The outlook for the markets in the forthcoming months presents a combination of opportunities and challenges. It is expected that the U.S. Fed will desist from raising rates further in September, Butterfill added.

A dovish shift in Fed policy could provide a boost to Bitcoin’s prospects, he said.

On the flip side, investors are keenly awaiting the Securities and Exchange Commission’s decision on the Grayscale ETF and BlackRock applications in September. Expectations are that decisions on both applications might be delayed, potentially resulting in investor disappointment, he added.

Along with Bitcoin, Ether rose 0.85 per cent to $1,683.57 but stayed 8.50 per cent lower for the last seven days.