Deribit tops $40B in bitcoin options open interest amid $15B quarterly expiry

XRP, the fourth-ranked cryptocurrency, has been in a free fall against Bitcoin , the leading digital currency in terms of price metrics. According to data from CoinMarketCap, XRP has experienced a significant decline against Bitcoin over the last 24 hours.

Is court decision impacting XRP’s price?

Notably, XRP is threatening to breach the $2 support as it experiences intense volatility on the cryptocurrency market. As of press time, XRP was changing at $2.09, representing a 4.64% decline within this time frame. The coin crashed from its peak of $2.19 to this level and looks likely to continue its downward path.XRP Daily Price Chart | Source: CoinMarketCap">

Conversely, Bitcoin rose by a significant 1.5% to $107,003. This is higher than the overall performance of the crypto market, which was pegged at 0.9%.

XRP’s notable decline against Bitcoin can be linked to the recent U.S. District Court decision. In a stunning move, presiding Judge Analisa Torres denied a motion filed by Ripple Labs and the Securities and Exchange Commission (SEC) for an indicative ruling.

According to the ruling, Judge Torres maintained that the arguments for appeals did not convince the court and would not modify her final judgment.

This development has sparked concern among some investors, who are now uncertain about XRP’s future outlook. This uncertainty is now reflected in the price of XRP, resulting in a significant sell-off despite trading volume jumping by 26.06% to $3.29 billion.

How XRP resilience might help

XRP has demonstrated resilience for much of this year, managing to stay above the psychological $2 level. The current development, which once again threatens this crucial support, may blow over depending on the ecosystem's backing.

For instance, there has been a 442% increase in XRP active addresses over the last 48 hours, with the total number of addresses now reaching 181,000. This metric suggests growing interest and usage among market participants.

If Ripple communicates the next steps in the lawsuit to prove all is well, it may help alleviate concerns among XRP investors.

By Kwanwoo Jun

Shares of Kakaopay fell sharply Friday, after surging recently on market hopes for potential business opportunities in stablecoins--a cryptocurrency pegged to a traditional asset class such as the won or the dollar.

The South Korean mobile-payment stock's volatile trading reflects both expectations and concerns running high among traders over the digital money.

Kakaopay's stock fell 10%--the sharpest daily decline in more than three months--to close at 84,200 won, equivalent to $62.01. The slump followed the stock's forced trading suspensions on Tuesday and Thursday after Korea Exchange warned against the "investment-risk" stock that had surged of 16% on Monday and 30% in the prior session.

Some market analysts deem the stock to be overheated, as it has more-than doubled in a month.

Expectations have been growing among traders that the new administration under President Lee Jae-myung could introduce won-based stablecoins to South Korea. During Lee's election campaign, he was in favor of institutionalizing the cryptocurrency and other digital assets.

But the Bank of Korea has cautioned that stablecoins could pose a risk to financial stability. A widespread adoption of the digital money and compromised trust could result in so-called "coin runs," where issuers could be forced to liquidate assets on massive redemption requests such as bank runs.

The Bank for International Settlements said in its annual report earlier this week that demand for stablecoins has risen significantly, but crypto assets shouldn't be the mainstay of the future monetary system. Stablecoins still fall short of the requirements needed to ensure sound monetary arrangements, the BIS report said.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

XRP community is keeping a close eye on the courts again after Judge Torres rejected a joint motion from Ripple and the SEC, which means the lawsuit — which has been going on since 2020 — is going to continue. 

The decision already cost XRP over $2 billion in market cap in just 24 hours. But Fred Rispoli, a lawyer who supports Ripple, says that this latest setback won't put XRP and ETF hopes at risk — at least not directly.

Rispoli does not think the rejection will affect XRP's status on the secondary market, which is what matters for ETF approval. Even though the headlines might make you think otherwise, he does not see any legal reason why the injunction in the case would stop the SEC from going ahead with a spot XRP ETF.

The injunction, he stresses, only matters if the SEC wants it to matter, and the commission could just as easily waive the restrictions or choose not to enforce them. The big question, as he sees it, is whether the SEC's new tops are ready to change their approach.

Behind the scenes

He also said there are signs that Ripple and the SEC are moving toward a quiet settlement, probably for a reduced fine and with Ripple changing its institutional sales practices. That would keep the original Torres judgment in place while easing regulatory tension. 

Ripple has already made changes, with its legal team now calling past violations "historic institutional sales," which suggests they are trying to distance current operations from previous practices.

ETF analysts are feeling good. Eric Balchunas and James Seyffart from Bloomberg recently said the odds of XRP, Solana and Litecoin spot ETFs getting approved in 2024 are above 90%, which suggests the SEC is getting more involved with potential issuers.

If that keeps up, Rispoli might be right: the ETF option is still on the table, even with all the legal back and forth.

The idea of the colloquial “American Dream” might be due for an upgrade after BeInCrypto reported housing credits in the US considering Bitcoin-backed mortgages.

While homeownership has long defined financial success in the US, a growing movement led by crypto heavyweights says that even owning 0.1 Bitcoin might soon surpass that milestone.

Binance’s CZ Says 0.1 BTC Could One Day Outvalue a House

Changpeng Zhao (CZ), founder and former CEO of the Binance exchange, suggested that owning just 0.1 BTC, worth $10,679 as of this writing, could one day be worth more than a house in the US.

CZ was reacting to a post by William J. Pulte, a US housing policy official and crypto advocate, who announced crypto inclusion as an asset for a mortgage application.

According to CZ, this is great to see, with Bitcoin now counting as an asset when applying for a mortgage in the US.

Pulte is the director of the US Federal Housing Finance Agency (FHFA), which oversees major entities such as Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.

The decision marks a fundamental shift in US financial policy. Enacting this policy, particularly regarding Bitcoin, enhances the pioneer crypto’s popularity among high-net-worth investors. More closely, it legitimizes crypto as a financial asset in federal housing policy.

This aligns with a broader trend of digital assets gaining mainstream legitimacy in financial infrastructure, including Bitcoin ETFs (exchange-traded funds) and Ethereum counterparts.

Notably, Pulte also revealed regulatory momentum, ordering executives at Fannie Mae and Freddie Mae to provide regulatory changes. After a “productive meeting,” Pulte confirmed the addition of crypto to US mortgage qualification.

Meanwhile, like CZ, MicroStrategy (now Strategy) executive chair Michael Saylor sees the move as Bitcoin’s foray into the American Dream.

Saylor has long viewed Bitcoin as a long-term store of value. This latest development cements that vision, tying Bitcoin to the foundational aspects of middle-class life such as homeownership.

In a recent US Crypto News publication, BeInCrypto reported Saylor offering MicroStrategy’s Bitcoin Credit framework to calculate credit risk using BTC price volatility and loan duration, among other factors.

Bitwise’s Jeff Park Explains The Rise of the “Wholecoiner”

Elsewhere, Jeff Park says the American Dream is being redefined for younger generations. According to the portfolio manager at Bitwise, becoming a “wholecoiner” (owning 1 full BTC) is replacing suburban homeownership as a symbol of financial independence for Millennials and Gen Z.

With US home prices soaring, weighing heavily on younger Americans, the dream of owning property is slipping away.

Similarly, student debt is a challenge, with reports suggesting high unemployment rates even for students graduating from top-of-the-line institutions.

Meanwhile, Bitcoin, trading at $106,796 as of this writing, represents an alternative grounded in scarcity, autonomy, and global access. A report from Jumper Learn echoes this sentiment.

The policy shift reflects a broader cultural transformation. As digital natives prioritize flexibility, decentralization, and sovereignty, Bitcoin is going beyond being just an asset and progressively becoming a lifestyle anchor.

As Saylor, CZ, and Pulte, among others, converge around this narrative, Bitcoin becomes a benchmark of aspiration. The modern American Dream could soon be measured in satoshis, not square footage.