Ripple’s XRP is undoubtedly one of the most popular cryptocurrencies, with a strong community of devoted supporters and millions of holders.
The coin is one of the veterans in the industry and has consistently been a part of the top 10 largest cryptocurrencies by means of total market cap for many years now. However, in December 2020, the United States Securities and Exchange Commission filed a lawsuit against Ripple, alleging that XRP is a security and, therefore, claiming that the company conducted an unregistered offering of securities.
The consequences were dire, and the coin failed to enjoy much of the bull run in 2021, which saw Bitcoin reaching an all-time high close to $70K.
With that said, many have been wondering when will the XRP bull run start. This is why we decided to poke the artificial brains of ChatGPT – the world’s most popular AI chatbot. Let’s see what it has to say.
The Ripple v. SEC Case Is Important
One of the main factors that ChatGPT outlined as critical for the potential initiation of a new XRP bull run is regulations.
Regulatory developments can have both positive and negative impacts. Clarity and favorable regulations can boost investor confidence.
In the context of an XRP-specific bull run, it’s perhaps safe to assume that the case between Ripple and the US SEC will likely play a critical role.
A positive outcome could potentially catapult XRP’s price – and we’ve already seen hints of that. In July, the presiding judge – Analisa Torres – ruled that secondary sales of XRP do not constitute an investment contract. It means that in this specific context, XRP does not fit the definition of security, according to the court.
Now, this was only a partial victory, and the decision is being appealed by the SEC, but the market exploded the same day it came out. XRP’s price almost doubled in a day.
What is more, a lot of the exchanges that had previously delisted the cryptocurrency enabled it for trading again.
You can find more details about it in our short video here:
Here’s the Catch
While a win against the SEC might have a positive impact on XRP’s price, it’s far from being the only thing that could trigger a bull run, according to ChatGPT.
Some of the other considerations include:
- Market Sentiment
- Adoption and Use Cases
- Market Liquidity and Trends
- Market Timing
This last one catches the attention. Typically, bull runs in altcoins tend to coincide with Bitcoin’s parabolic movements, and guess what’s just around the corner?
That’s right – one of the most bullish events in the history of cryptocurrencies – the Bitcoin halving. This has always been a catalyst for a bullish market cycle, so it remains to be seen if this time will be the same. It’s estimated to happen in late Q1 or early Q2 in 2024.
However, the global economy can also have an impact, and that’s the catch. If the field of traditional finance continues to crumble, it’s questionable if cryptocurrencies will be able to decouple.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
